The TSX posted bigger gains Wednesday despite a downturn in energy stocks and the continued decline in mining shares, as investors cheered Bank of Canada's rate cut that the market sees could help support the Canadian economy.
The S&P/TSX composite index moved forward 62.88 points to close at 14,662.28
The Canadian dollar fell backward 1.16 cents at 77.39 cents U.S.
Utilities proved hot items, as Brookfield Renewable Energy leaped $2.33, or 6.8%, to $36.80, while Fortis jumped 85 cents, or 2.3%, to $37.21.
Consumer staples also did well for themselves, as Alimentation Couche-Tard moved higher $2.41, or 4.4%, to $57.40, and Loblaw gained $1.01, or 1.5%, to $67.06.
Health-care stocks were also progressing, mostly Extendicare, which roared ahead 43 cents, or 5.3%, to $8.51.
Metals and mining proved one of the few downers, as HudBay Minerals sank 32 cents, or 3.2%, to $9.76.
Energy stocks also moved lower, mostly Ensign Energy, which collapsed 70 cents, or 6.1%, to $10.73. However, Pacific Rubiales Energy was the most actively traded stock, gaining 23 cents, or 6.9%, to $3.56, on 4.2 million shares.
On the economic front, the Bank of Canada cut its key interest rate by a quarter percentage point to 0.5%, saying an unexpected economic contraction throughout the first half of the year had added to excess capacity and put downward pressure on inflation.
Elsewhere, Statistics Canada came out with its monthly survey of manufacturing, which revealed that sales edged up 0.1% in May, while constant dollar sales fell 0.5%, indicating a lower volume of goods sold..
Meanwhile, the Canadian Real Estate Association said sales activity was down 0.8% last month from May, but noted that sales levels in May and June were at the strongest level in more than five years.
Actual sales for June, not seasonally-adjusted, surged 11% from June 2014.
ON BAYSTREET
The TSX Venture Exchange slid 2.58 points to 642.51
Nine of the 14 TSX subgroups were higher, with utilities and consumer staples going 1.8% each, and health-care up 1.4%.
The five laggards were lowered by metals and mining, down 1.4%, energy, off 1.2%, and gold, down 1%.
ON WALLSTREET
U.S. stocks closed mildly lower on Wednesday as investors remained anxious ahead of an impending Greek parliament vote.
The Dow Jones industrial average fell back 3.41 points to 18,050.17, with Apple leading gains and Chevron the greatest laggard.
The S&P 500 eked back 1.54 points to 2,107.41, with financials leading four sectors higher and energy the greatest laggard.
The NASDAQ index subtracted 5.95 points to 5,098.94.
Second-quarter earnings season picked up with reports from Bank of America, BlackRock, US Bancorp, Delta Air Lines and PNC Financial. After the close, Intel and Netflix post results.
The Greek parliament faced a midnight deadline (5 p.m. ET) to pass reforms needed to secure a bailout deal from its creditors. After defaulting on a loan to the International Monetary Fund at the beginning of July, Athens has another payment due to the European Central Bank Monday.
The major averages turned lower and briefly extended losses as news of violent anti-austerity protests erupting in Athens weighed on sentiment ahead of the vote.
Netflix closed down 2.2%, recovering from a plunge of more than 3% in the first trading day after its seven-for-one stock split. The video streaming service posts earnings after the close.
Federal Reserve Chair Janet Yellen said Wednesday "a decision on our part to raise rates will say, 'no the economy doesn't stink.' We're close to where we want to be and we now think the economy can not only tolerate but needs higher rates. So there have been headwinds and we've tried to use monetary policy to overcome them."
Yellen appeared before the House Financial Services Committee to deliver her testimony on the economy. The following question-and-answer session focused more on political than fiscal issues.
In prepared remarks, Yellen said the central bank is on pace to raise rates this year if the economy evolves as expected. She said unemployment should decline but inflation remains below the Fed's target. Greece and China topped the list of uncertainties in Yellen's testimony.
On Tuesday, June retail sales fell 0.3%, compared with analyst expectations for a rise.
U.S. June producer price data showed an increase of 0.4% in June, while the July Empire State Survey came in at 3.9, topping June's negative 2 read.
June industrial production showed an increase of 0.3%, with capacity utilization at 78.4%, up a touch from May.
The Fed's Beige Book showed that the U.S. economy continued to expand at a moderate to modest pace through June.
Prices for 10-year U.S. Treasuries were higher, lowering yields to 2.36% from Tuesday’s 2.40%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.59 a barrel to $51.45 U.S.
Gold prices dipped $5.60 at $1,147.90 U.S. an ounce.
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