The Toronto stock index gained ground on Tuesday as energy stocks rose tracking oil prices and as data showed Canada's exports scaled all-time peak in February.
The TSX Composite Index added 18.52 points to Monday’s all-time high, to break for lunch at 22,104.12.
The Canadian dollar soared 0.27 cents to 80.36 cents U.S.
The big wheel Tuesday morning proved to be in consumer staples, with Metro jumped $1.46, or2%, to $72.86, while George Weston shares moved skyward $2.83, or 1.8%, to $158.37.
Cannabis stocks, though, took it on the chin, with Tilray sliding 45 cents, or 4.9%, to $8.83, while Aurora Cannabis faltered 18 cents, or 3.5%, to $4.99.
Economically speaking, Statistics Canada reported that in February, Canada's merchandise imports were up 3.9%, following a 7.5% decline in January. Meanwhile, exports rose 2.8% in February. As a result, Canada's merchandise trade surplus with the world narrowed from $3.1 billion in January to $2.7 billion in February.
The federal Liberals find themselves in a bind ahead of this week's budget: the economy has recovered from the pandemic, yet Prime Minister Justin Trudeau has pledged billions in new stimulus, a political poker chip that could further torch runaway inflation.
ON BAYSTREET
The TSX Venture Exchange fell 3.81 points to 901.29.
The 12 TSX subgroups were evenly split by noon hour, with consumer staples up 1.3%, while utilities and communications each prospered 0.8%.
The half-dozen laggards were weighed most by health-care, sliding 1.7%, while materials dipped 1.1%, and consumer discretionary stocks fell 1%.
ON WALLSTREET
The S&P 500 dipped on Tuesday as traders assessed the Federal Reserve’s next move and whether the U.S. is headed eventually into a recession.
The Dow Jones Industrials eased back 29.17 points by noon to 34,892.71, boosted by gains in Merck and Chevron.
The S&P 500 slumped 23.71 points to 4,558.93.
The NASDAQ Composite cratered 239.36 points, or 1.6%, to 14,291.96.
Deutsche Bank on Tuesday became the first major Wall Street bank to forecast a U.S. recession is ahead, citing surging inflation and aggressive Federal Reserve rate hikes.
Stocks could be on hold as investors await the release of Federal Reserve meeting minutes on Wednesday. Those minutes were for the meeting last month where the central bank hiked rates for the first time in years and indicated six more hikes were ahead this year.
Shares that would hold up well in a slowing economy were higher on Tuesday. Drugmakers Johnson & Johnson and Pfizer were higher by more than 1.5%. Staples like Procter & Gamble and Walmart were also higher.
Meanwhile, cruise stocks like Carnival, Norwegian Cruise Line, and Royal Caribbean rose more than 3%.
Tech shares were lower, led by chip shares, consolidating their big gains from Monday. Some believe this group could be hurt the most by the Fed’s hiking campaign as investors take less risk and buy stocks with steady profits, rather than growth shares promising big earnings down the road.
Nvidia lost 3% while Amazon and Tesla were each lower. Still, Twitter shares added another 3% to their 27% Monday gain after Elon Musk said he will join the company’s board of directors a day after revealing a 9.2% stake in the social media giant.
And investors continue to keep an eye on Europe, as the war between Ukraine and Russia continues. Ukraine President Volodymyr Zelenskyy pledged to pursue allegations of war crimes against Russian forces, noting that more than 300 people were killed and tortured in a suburb near the capital of Kyiv
Treasury prices faltered as yields spiked to 2.55%, from Monday’s 2.41%. Treasury prices and yields move in opposite directions.
Oil prices backtracked 38 cents to $102.90 U.S. a barrel.
Gold prices moved backward four dollars to $1,930.00 U.S. an ounce.
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