Canada's main stock index rose on Tuesday as data showed domestic manufacturing activity in August accelerated to its fastest pace in two years, bolstering hopes of a post-coronavirus economic recovery.
The TSX gained 70.25 points to reach noon hour at 16,584.69.
The Canadian dollar docked 0.03 cents to 76.66 cents U.S.
The largest percentage gainer on the TSX was Whitecap Resources, which jumped 17 cents, or 6.6%, to $2.74, after multiple brokerages hiked the price target of the stock.
Its gains were followed by Crescent Point Energy, which rose 4.5 cents, or 2%, to $2.34, after the oil producer said it expects to generate nearly $125 million of excess cash flow in the second half of 2020.
Aurora Cannabis fell 61 cents, or 4.7%, the most on the TSX, to $12.27, and the second-biggest decliner was Ballard Power Systems, down 29 cents, or 1.3%, to $21.36.
On the economic front, the IHS Markit Purchasing Managers Index registered 55.1 in August, up from 52.9 in July, to signal the sharpest improvement in business conditions since August 2018.
ON BAYSTREET
The TSX Venture Exchange gained 1.69 points to break for lunch at 752.68, off its highs of the morning.
Seven of the 12 TSX subgroups moved negative midday, with health-care descending 1.7%, gold dulling in price 1.4%, and materials sliding 0.9%.
The five gainers were led by information technology, sprinting 2.5%, energy, gushing 1.4%, and consumer discretionary issues, up 1.2%.
ON WALLSTREET
Stocks rose on Tuesday, the first trading day of the month, as the market tried to build on its best August performance since the 1980s.
The Dow Jones Industrials recovered 89.38 points to move into lunch hour Tuesday at 28,519.43, and erased a loss of more than 100 points from earlier in the session.
The S&P 500 moved higher 12.27 points to 3,512.58.
The NASDAQ Composite popped 119.44 points, or 1%, to 11,894.89.
Apple led the gains in tech, rising 2.4%. That gain came a day after the stock rose more than 3% following a stock split that appears to be causing investors to snap up the shares.
Walmart shares climbed more than 5% after the retailer announced it would launch its own membership program, Walmart+, later this month.
Shares of Zoom Video jumped more than 37% after reporting another blowout quarter. The video conferencing company’s revenue more than quadrupled in the fiscal second quarter compared to a year ago. Tesla fell 0.6% after a regulatory filing revealed the company would sell up to $5 billion of its own stock.
The major averages also got a boost on Tuesday from better-than-expected manufacturing data. The final read on the August manufacturing PMI came in at 56, a 19-month high, as new orders hit their highest level since 2004.
Along with tech, reopening stocks — cruise line operators, airlines and hotels — had a big August. Royal Caribbean and MGM Resorts both gained about 40%, while FedEx and Gap jumped 30% each. Delta Air Lines and Norwegian Cruise Line were also among the S&P 500 leaders in August. Many of those shares were down slightly in Tuesday premarket trading.
The Dow’s composition changed on Monday with Apple’s four-for-one stock split taking effect. Salesforce, Amgen and Honeywell replaced longtime components Exxon Mobil, Pfizer and Raytheon Technologies.
The S&P 500 and the Dow just wrapped up their best August in more than 30 years. The blue-chip average rallied 7.6% in August for its fifth positive month in a row and its biggest August gain since 1984. The S&P 500 also rose for a fifth month straight, up 7%, clinching its best August since 1986.
The tech-heavy NASDAQ jumped 9.6% in August, posting its best monthly performance since 2000.
Prices for the 10-Year Treasury were higher, lowering yields to 0.69% from Monday’s 0.71%. Treasury prices and yields move in opposite directions.
Oil prices jumped 54 cents to $43.15 U.S. a barrel.
Gold prices advanced $1.80 to $1,980.40 U.S. an ounce.
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