Equities in Canada’s biggest market rose to a new nine-month high on Tuesday as energy and financial stocks rose after oil climbed above $50.00 a barrel, while one of its major healthcare stock components plunged after it missed quarterly profit estimates.
The S&P/TSX Composite Index strengthened another 45.58 points to open Tuesday at 14,321.74, maintaining the 20%-plus gain since its low point in January, thereby qualifying as a bull market.
The Canadian dollar took on 0.2 cents to 78.22 cents U.S.
Valeant Pharmaceuticals International, which is under scrutiny for business and accounting practices, reported a lower-than-expected quarterly profit and cut its full-year earnings and revenue forecasts.
Valeant shares cowered $6.68, or 18.1%, to $30.32.
A weaker economy in Kyrgyzstan is being blamed for the Central Asian state "turning up the heat" on Centerra Gold Inc in recent weeks as the country guns for a bigger slice of the miner's profits.
Centerra shares ditched 28 cents, or 3.9%, to $6.91.
Portfolio manager Martin Grosskopf is betting heavily on alternative fuel vehicles overtaking traditional cars as a pillar of the no-fossil-fuels allocation strategy of his AGF Investments sustainable fund.
AGF shares eked up four cents to $5.28.
Raymond James cut the target price Altagas to $33.00 from $35.00. Altagas shares acquired a penny to $31.69.
Barclays raised the price target on Emera Inc. to $52.00 from $50.00. Emera shares gained 85 cents, or 1.8%, to $47.37.
Raymond James cut the rating on FirstService Corp. to market perform from outperform. FirstService shares dipped 65 cents, or 1.1%, to $59.66.
On the economic beat, Western University’s IVEY Purchasing Managers Index for May came in at 49.4, compared to 53.1 for April. The survey of purchasing managers asks whether their purchases increased during the month or went down. Any reading below 50 indicates a contraction.
ON BAYSTREET
The TSX Venture Exchange dropped 0.14 points to begin Tuesday at 702.45
Eight of the 13 TSX subgroups were positive to start the session, with energy roaring ahead 1.5%, utilities better by 0.8%, and financials, up 0.5%.
The five laggards were weighed most by health-care, sagging 4.1%, gold, off 0.6%, and the metals and mining sector, sliding 0.5%.
ON WALLSTREET
U.S. stocks traded mostly higher Tuesday, following a rise in global equities, as gains in energy stocks offset declines in health-care issues.
The Dow Jones Industrials moved up 64.69 points to 17,985.02, with Apple leading advancers and Pfizer the greatest decliner.
The S&P 500 gained 4.3 points at 2,113.71, as health care led decliners.
The NASDAQ squeezed ahead 2.07 points to 4,970.78.
Shares of Biogen traded more than 11% lower after reporting disappointing results in a mid-stage review for its experimental multiple sclerosis drug treatment.
In economic news, first-quarter U.S. productivity, which measures hourly output per worker, contracted at an annualized rate of 0.6%, instead of the 1% pace reported last month. Unit labour costs, the price of labor per single unit of output, increased at an upwardly revised 4.5% pace.
Prices for the 10-year Treasury moved higher, lowering yields to 1.71% from Monday’s 1.73%. Treasury prices and yields move in opposite directions.
Oil prices tacked on 50 cents a barrel to $50.19 U.S.
Gold prices sank four dollars to $1,243.40 U.S. an ounce.
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