Canada's main stock index rose on Tuesday, lifted by energy shares that were supported by oil prices recovering from their biggest tumble of the year.
The S&P/TSX Composite Index had gained 35.46 points by midday Tuesday to 16,092.49
The Canadian dollar squeezed out a gain of 0.03 cents at 75.87 cents U.S.
Among the 11 major sectors, the energy index was the biggest gainer, with Crescent Point Energy and Baytex Energy the top advancers on the index. Crescent Point jumped 22 cents, or 5.5%, to $4.20, while Baytex popped 13 cents, or 5.7%, to $2.42.
The largest percentage gainer on the TSX was Thomson Reuters, which reported a 9% rise in quarterly revenue. Thomson gained $2.24, or 3.2%, to $71.95
The second-biggest advancer was Aphria, which rose 46 cents, or 3.6%, to $13.19, after announcing a deal with Manna Molecular Science to make cannabis transdermal patches.
Husky Energy fell 95 cents, or nearly 6%, the most on the TSX, to $15.02, after the oil and gas producer said its 2019 production could be lower than it had previously expected.
The second-biggest decliner was Bank of Nova Scotia, down $2.10, or 2.8%, to $73.32.
ON BAYSTREET
The TSX Venture Exchange moved forward 2.43 points to 626.16
Eight of the 12 TSX subgroups remained in the green by noon, with health-care soaring 2.1%, consumer staples galloping 1%, and industrials improving 0.5%.
The four laggards were weighed most by gold, dulling in price 1%, materials, weakening 0.6%, and information technology, fading 0.5%.
ON WALLSTREET
Stocks struggled to find direction on Tuesday as investors digested the release of weaker-than-expected Home Depot earnings, mixed economic data and testimony from the top-ranked Federal Reserve official
The Dow Jones Industrials made strides toward the green, but was still behind 6.78 points midday to 26,085.17
The S&P 500 had gained 1.05 points to 2,797.16.
The NASDAQ Composite faded 4.6 points to 7,549.86
Equities initially fell after Home Depot reported adjusted fourth-quarter earnings of $2.09 a share, below an expected profit of $2.16. The home improvement company also issued weaker-than-expected guidance for 2019. Those results sent Home Depot shares down about 2%.
Home Depot's results were followed by weaker-than-expected housing starts data. Data released by the Commerce Department showed housing starts fell 11.2% in December and reached their lowest level since September 2016.
Caterpillar dropped 2.8% after UBS cut its rating on the industrial giant to sell from buy. UBS also slashed its 12-month price target on Caterpillar to $125 per share from $154, implying an 11.6% downside from Monday's close of $141.41.
UBS cited slowing demand in global construction as the main reason for the downgrade. Caterpillar is largely seen as a bellwether for global growth.
Consumer confidence surged to 131.4 in February, easily topping an estimate of 124. In January, consumer confidence was at 121.7.
Home prices also rose in December at their slowest pace August 2015, the S&P Case-Shiller index showed.
Market participants also digested testimony from Federal Reserve Chairman Jerome Powell to a U.S. Senate committee on Tuesday. In prepared remarks, Powell said the economy is "healthy" but added the Fed is also seeing "crosscurrents and conflicting signals." It comes after the U.S. central bank adopted a more cautious stance on future interest rate hikes last month.
Prices for the benchmark 10-year U.S. Treasury gained ground, lowering yields to 2.65% from Monday’s 2.67%. Treasury prices and yields move in opposite directions.
Oil prices picked up 34 cents to $55.82 U.S. a barrel.
Gold prices sank $1.60 to $1,327.90 U.S. an ounce.
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