Equity markets in Toronto regained strength late morning Tuesday, building on heavy gains from Monday, led by strength in heavyweight financial stocks and helped by positive sentiment created by better-than-expected earnings from U.S. retailers.
The S&P/TSX composite index recovered 24.97 points to greet noon at 13,342.49
The Canadian dollar added 0.05 cents at 75.06 cents U.S.
Financials rose, led by a 0.6% advance for Toronto-Dominion Bank to $54.29 and a 0.8% gain for Bank of Nova Scotia to $60.60.
Energy stocks dipped after soaring more than 4% on Monday. A pullback in crude oil weighed on the sector, as security fears after last week's Paris attacks gave way to concern about global oversupply in crude and petroleum products.
Enbridge advanced 1% to $49.92 following news that it is cutting 5% of its workforce in response to low crude prices.
Goldcorp fell 3.2% to $15.51 and Barrick Gold Corp fell 2.9% to $9.88.
Valeant Pharmaceuticals International Inc fell 1.2% to $96.65 after Morgan Stanley cut its earnings estimates and price target for the stock.
Copper prices were unchanged at $4,690.00 U.S. a tonne
ON BAYSTREET
The TSX Venture Exchange moved down 3.56 points to 522.55
Eight of the 13 TSX subgroups were higher, led by health-care, up 1.7%, while real-estate surged 1.1%, and financials were richer by 0.9%.
Five subgroups trailed yesterday’s close, most notably gold, down 4.5%, materials, down 2.5%, and telecoms, sinking 0.6%.
ON WALLSTREET
U.S. stocks traded mostly higher Tuesday, as some encouraging earnings reports offset pressure from declines in oil prices.
The Dow Jones industrial average hiked 106.17 points to pause for lunch at 17,589.18, helped primarily by a roughly 4% gain in Home
Depot on a solid earnings report. The second-largest contributor to gains, Wal-Mart, briefly jumped 5% on good quarterly results.
The S&P 500 moved up 10.09 points to 2,063.28. Energy traded flat after briefly falling more than 1% as the greatest decliner in the S&P 500, following a reversal in oil prices after Monday's gains.
The NASDAQ index bolted 31.81 points higher to 5,015.80, as Apple traded slightly higher
Home Depot posted earnings that topped expectations on revenue that roughly matched estimates. The home improvement retailer reported a greater-than-expected rise in same-store sales both globally and in the United States. Home Depot's earnings outlook for the full year is also above analyst forecasts.
Wal-Mart reported quarterly profit that beat estimates by one cent, with revenue essentially in line. The retail giant's comparable store sales matched expectations, while the full-year forecast is largely above Street consensus.
Home Depot is up more than 15% year-to-date, while Wal-Mart is off more than 25% for the year so far.
Dick's Sporting Goods reported quarterly earnings one cent U.S. below estimates on revenue that was very slightly above forecasts. Comparable store sales rose 0.4%, missing estimates of 2.1%
In midday trade, the stock fell more than 10%, or down more than 25% for the year so far.
In economic news, the consumer price index rose 0.2% in October, matching estimates.
Home builder confidence fell more than expected to 62 in November.
Industrial production for October showed a second-straight month of decline with a 0.2% drop, missing expectations for a slight rise.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.29% from Monday’s 2.27%. Treasury prices and yields move in opposite directions.
Oil prices skidded 65 cents a barrel to $41.09 U.S.
Gold prices faded $14.80 to $1,067.96 U.S. an ounce.
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