Equities in Canada’s largest market opened higher on Wednesday, as rising gold prices lifted the materials sector.
The S&P/TSX Composite Index gained 31.34 points to begin Wednesday at 15,650.27
The Canadian dollar dipped 0.13 cents to 77.71 cents U.S.
Suncor Energy posted a first-quarter profit that beat analyst expectations, as improved crude oil pricing and higher refining margins outweighed lower production. Suncor gained 51 cents, or over 1%, in the first hour, to $49.35
Loblaw Companies beat profit estimates, helped by a rise in same-store sales in its food and drug retail businesses. Loblaw shares picked up 12 cents to $65.68.
CIBC cuts target price on Fortis Inc. to $48.00 from $50.00. Fortis shares ducked 17 cents to $42.88.
Desjardins cut the rating on Rogers Sugar to hold from buy. Rogers Sugar stock collapsed 73 cents, or 11.4%, to $5.39.
Jefferies initiated coverage on Sierra Metals with a hold rating and a $3.50 price target. Sierra shares were unchanged at $3.52.
On the economic front, the IHS Markit Canada Manufacturing Purchasing Managers’ Index posted 55.5 in April, little changed from 55.7 in March and well above the neutral 50.0 threshold.
Meantime, U.S. Trade Representative Robert Lighthizer said on Tuesday that if a deal to revise the North American Free Trade Agreement cannot be reached with Canada and Mexico in about three weeks, its approval by the U.S. Congress could be in jeopardy.
ON BAYSTREET
The TSX Venture Exchange eased 1.7 points to 773.76
Eight of the12 TSX subgroups were higher, with information technology soaring 2.1%, materials up 0.9%, and industrials 0.5% to the good.
The four laggards were weighed by consumer staples, shedding 0.4%, while health-care and financials doddered 0.2% each.
ON WALLSTREET
Stocks slipped on Wednesday as investors looked ahead to the Federal Reserve's latest announcement on monetary policy.
The Dow Jones Industrial Average scampered back 53.92 points to 24,045.13, as a 1.3% decline in Intel offset a 3% jump in Apple.
The S&P 500 dipped 4.03 points to 2,650.77, as health-care fell nearly 1%.
The NASDAQ leaped 64.44 points to 7,130.70
In corporate news, Apple rose after reporting better-than-expected quarterly earnings and revenue that surpassed market expectations.
Wall Street was eagerly awaiting Apple's quarterly figures as the company is seen as a bellwether for the technology sector.
Earnings season continued Wednesday with CVS Health and Estee Lauder among the companies that reported earnings that beat analyst expectations. Garmin and Clorox also posted stronger-than-forecast results.
Overall, most major companies have reported quarterly earnings that outperform analyst estimates. According to FactSet, 79.1% of S&P 500 companies that have reported thus far have surpassed earnings expectations.
In economic news, mortgage applications dropped 2.5%, as rates reached their highest levels in nearly five years. ADP and Moody's
Analytics also found that private payrolls grew by 204,000 in April, more than the expected 200,000.
The Fed is scheduled to release its latest monetary policy decision at 2 p.m. ET. Market expectations for a May rate hike are just 5.7%
While market participants do not foresee any modifications to interest rates, investors will be looking for clues about the Fed's tightening pace moving forward.
Prices for the benchmark 10-year Treasury note gained some ground, dropping yields to 2.96% from Tuesday’s 2.97%. Treasury prices and yields move in opposite directions.
Oil prices inched up four cents a barrel to $67.29 U.S.
Gold prices fell $1.20 to $1,305.60 U.S. an ounce.
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