Markets in Toronto progressed on Wednesday as rising oil prices lifted energy stocks and the financial sector got a boost from Royal Bank of Canada's strong quarterly earnings.
The S&P/TSX Composite Index popped 88.89 points to greet noon at 16,385.86
The Canadian dollar regained 0.12 cents to 76.8 cents
Leading the gainers on TSX was the energy sector as oil touched two-week highs. Suncor Energy's $1.25, or 2.4% rise to $53.76 was the biggest help to the energy sector.
The biggest boost was Royal Bank of Canada which rose 67 cents to $103.26, after the country's biggest lender reported quarterly earnings that topped market expectations.
Canadian Imperial Bank of Commerce, due to report on Thursday, captured 18 cents to $121.77. Toronto-Dominion Bank, set to report next week, gained 14 cents to $78.80. Bank of Nova Scotia was ahead 26 cents to $77.76, and Bank of Montreal acquired 41 cents to $106.13. Scotiabank and BMO are both also set to report next week.
Raging River Exploration jumped 26 cents, or 5%, to $5.49, after receiving shareholder and court approval for its planned merger with rival Baytex Energy Corp. Baytex shares were up 14 cents, or 3.5%, to $4.02. Both these stocks were the largest percentage gainers on the TSX.
Magna International fell 77 cents, or 1.1%, to $70.01, the most on the TSX. The second biggest decliner was Aurora Cannabis, down 10 cents, or 1.2%, to $8.06.
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 regained 2.61 points to 694.57
All but three of the 12 subgroups were higher midday, as energy spiked 2.2%, while health-care and materials were each stronger by 0.8%.
The three laggards were consumer discretionary stocks, off 0.4%, and telecoms, down 0.3%, and utilities, fading 0.03%.
ON WALLSTREET
Stocks rose slightly 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 remained negative 2.08 points to 25,820.21
The S&P 500 regained 4.22 points to 2,867.18, as energy and tech outperformed.
The NASDAQ grew 32.74 points to 7,891.91, as Netflix gained 1.7% and Amazon gained 0.9%.
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.
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 5%
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 gained slightly, lowering yields to 2.83% from Tuesday’s 2.84%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.57 at $67.41 U.S. a barrel.
Gold prices added $1.50 to $1,201.50 U.S. an ounce.
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