Equity markets opened higher on Wednesday as rising oil prices lifted energy stocks and the financial sector got a boost from Royal Bank of Canada's solid quarterly earnings.
The S&P/TSX Composite Index recovered 48.97 points to begin Wednesday at 16,345.94
The Canadian dollar regained 0.1 cents to 76.78 cents
Royal Bank of Canada reported third-quarter earnings that were ahead of market expectations, helped by strong results from its retail, wealth management and investment banking businesses.
Royal shares eked up three cents to $102.62.
RBC raised the target price on Brookfield Business Partners LP to $47.00 from $45.00. Brookfield shares hiked 71 cents, or 1.3%, to $54.61.
Among energy concerns, Suncor climbed $1.10, or 2.1%, to $53.60, while Imperial Oil took on 39 cents, or 1%, to $40.89.
Health-care stocks took a day out from their recent hot streak and retreated, as Canopy Growth dipped $1.92, or 3.8%, to $48.34, while Aurora Cannabis handed back 40 cents, or 4.9%, to $7.76.
On the economic calendar, Statistics Canada reported that, following a 2.2% increase in May, retail sales edged down 0.2% in June to $50.7 billion.
The agency went on to say sales were down in six of 11 sub-sectors, representing 52% of total retail trade, to $63.1 billion, for the second time in three months, with sales off in five of seven sub-sectors, accounting for 71% of total wholesale sales.
ON BAYSTREET
The TSX Venture Exchange sank 0.39 points to 691.57
All but three of the 12 subgroups were higher in the first hour of trading, as energy spiked 1.7%, gold shone 0.6% brighter, and materials were stronger 0.4%.
The three laggards were health-care, retreating 2%, consumer discretionary stocks, off 0.3%, and telecoms, down 0.1%.
ON WALLSTREET
Stocks were little changed on Wednesday as investors shook off renewed political worries surrounding President Donald Trump on the day the bull market was set to become the longest on record.
The Dow Jones Industrial Average subtracted 16.81 points to 25,805.48,
The S&P 500 retreated 2.1 points to 2,860.86, with industrials underperforming.
The NASDAQ gathered 3.56 points to 7,862.73
Target shares jumped on strong earnings, helping stocks keep losses muted. Target reported better-than-expected quarterly earnings on the back of its best same-store sales growth in 13 years. The report sent Target shares up by more than 6%.
The current bull market turned 3,453 days old on Wednesday. In that time, the S&P 500 has skyrocketed more than 300% in that time period. On Tuesday, it tied the one that ran from October 1990 to March 2000.
Michael Cohen, Trump's former personal lawyer, pleaded guilty to eight counts related to tax fraud, campaign contributions, making false statements to a financial institution, and unlawful corporate contributions. Cohen also admitted to making payments to two women at the direction of Trump.
Meanwhile, former Trump campaign manager Paul Manafort was found guilty on eight counts in a separate case. Five of those counts pertained to tax fraud, two to bank fraud and one to failing to file foreign bank account reports.
Stock futures fell overnight after the news came out but quickly jumped off their lows.
Also helping to boost sentiment was a media report that said a "handshake" deal between the U.S. and Mexico on the North American Free Trade Agreement could be announced on Thursday. The report said that time has been cleared on the White House schedule for the announcement.
The report comes as a nine-member delegation from Beijing is set to start talks with U.S. officials in Washington today, with the hope of finding ways to relieve friction between the two nations. The meeting comes as fresh tariffs from the U.S. on $16 billion of Chinese goods are due to come into effect this week, with Beijing having imposed the same amount in retaliatory levies on the States.
Later on Wednesday, the Federal Reserve is scheduled to release the minutes from its meeting earlier this month. The release is scheduled for 2 p.m. ET.
Prices for the benchmark for the 10-year U.S. Treasury dropped, raising yields to 2.82% from Tuesday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.58 at $67.42 U.S. a barrel.
Gold prices added $3.60 to $1,203.60 U.S. an ounce.
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