Equities in Canada’s largest market opened marginally higher on Tuesday, a day after tumbling back into correction territory, helped by gains in energy shares on the back of higher crude prices.
The S&P/TSX fought doggedly higher 21.69 points to begin Tuesday at 19,742.56.
The Canadian dollar lost 0.21 cents to 77.36 cents U.S.
CIBC cut the target price on Converge Technology Solutions to $7.00 from $11.00. Converge shares grabbed a dime, or 1.6%, to $6.20.
CIBC cut the rating on Dialogue Health Technologies to neutral from outperform. Dialogue shares fell nine cents, or 2.6%, to $3.41.
CIBC cut the rating on Q4 Inc. to neutral from outperform. Shares in Q4 picked up 15 cents, or 3.3%, to $4.75.
On the economic front, Statistics Canada reported Tuesday manufacturing sales increased 1.7% in April, mainly on higher sales of petroleum and coal products, motor vehicles, and primary metals.
Elsewhere, CBC News reports Ottawa will announce an end today to COVID-19 vaccine mandates for domestic travel on planes and trains and outgoing international travel.
ON BAYSTREET
The TSX Venture Exchange faded 1.99 points to 669.91.
Seven of the 12 TSX subgroups tripped over their feet in the first hour, however, as utilities and gold lost 0.7% each, while real-estate stepped back 0.5%.
The five gainers were powered by industrials, ahead 1%, while energy surged 0.5%, and materials took on 0.4%.
ON WALLSTREET
Stocks rose on Tuesday, as the market tried to claw back some of Monday’s steep declines that pushed the S&P 500 back into bear market territory and traders looked ahead to a key monetary policy announcement from the Federal Reserve.
The Dow Jones Industrials recaptured 59.03 points to 30,575.77.
The S&P 500 poked ahead 11.25 points to 3,760.88.
The NASDAQ Composite moved higher 20.02 points to 10,829.25.
Shares of Oracle jumped more than 8% after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business. FedEx shares soared 14% after announcing it would add three new directors to its board. The stock was on pace for its best day in more than 20 years.
McDonald’s and Honeywell added 1%, bringing the Dow higher. The energy sector rose about 2%, boosted by shares of Occidental Petroleum and Phillips 66, which each rose more than 3%. Dow Transports rose more than 3% buoyed by gains from FedEx and CH Robinson and was on pace for its best day since March.
Those losses came as expectations grow for the Fed to hike rates more than initially anticipated. Media reports circulated Monday that the Fed will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect. The Wall Street Journal reported the story first.
Investors digested another important inflation reading of May’s producer price index on Tuesday. It showed wholesale prices rise 10.8% and hover near a record pace.
Treasury prices gained a bit, lowering yields to 3.37% from Monday’s 3.38%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.33 to $123.26 U.S. a barrel.
Gold prices dulled $13.00 to $1,818.80 U.S. an ounce.
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