TSX Bolts 170+

Energy, Materials Strongest Subgroups


Equities in Toronto rose sharply to a near one-month high on Wednesday, helped by gains in energy and material companies, and after the Bank of Canada issued an optimistic economic growth outlook.

The S&P/TSX Composite Index rocketed 176.67 points, or 1.2%, to end Wednesday at 15,529.97

The Canadian dollar lurched lower 0.42 cents to 79.23 cents U.S.

The energy sector rose, as prices of oil, rallied on rising supply concerns. Enbridge moved up 43 cents, or 1%, to $41.81, and Canadian Natural Resources ticked $1.57, or 3.6%, higher to $45.27 and boosted the energy sector.

Materials triumphed, as one of the largest percentage gainers on the TSX was First Quantum Minerals, which rose $1.17, or 6.7%, to $18.60, while Teck Resources climbed $1.03, or 3.1%, to $34.04.

In the health-care sector, Canopy Growth gained 79 cents, or 2.7%, to $30.65, while Valeant Pharmaceuticals propelled higher 33 cents, or 1.5%, to $22.04.

Among industrials, SNC-Lavalin was up $1.21, or 2.2%, to $56.56 after saying it had signed a deal with Saudi Aramco IPO-ARMO.SE to install added facilities at a major plant in Saudi Arabia.

Canadian Pacific Railway was notified by labour union Teamsters Canada that the railroad's workers will go on strike on April 21 after the two parties failed to resolve a deadlock in talks. CP shares gained $1.36 to $226.90.

On the economic front, the central bank maintained its target for the overnight rate at 1.25% The Bank Rate is correspondingly 1.5% and the deposit rate is 1%.

ON BAYSTREET

The TSX Venture Exchange reacquired 5.05 points to 802.60

All 12 TSX subgroups remained positive throughout the day, as energy popped 3.8%, materials solidified 1.9%, and health-care stocks were haler 1.5%.

ON WALLSTREET

The S&P 500 and NASDAQ composite closed higher on Wednesday as some of the biggest U.S. companies reported strong quarterly results, lifting investor sentiment.

The Dow Jones Industrial Average finished in the red 38.56 points to 24,748.07, as steep losses from IBM pushed the 30-stock index lower.

The S&P 500 gained 2.25 points to 2,708.64, as a sharp rise in crude prices lifted energy stocks.

The NASDAQ Composite index held onto 14.14 points worth of gains to 7,295.24

The corporate earnings season has gotten off to a strong start. According to Thomson Reuters I/B/E/S, 79% of the S&P 500 companies that had reported through Wednesday morning surpassed earnings expectations. Meanwhile, 83% of those companies topped sales estimates.

Rail transportation company CSX posted quarterly results that easily beat Wall Street estimates, boosted by a series of cost-cutting measures. CSX shares rose 7.8% and posted their biggest gain since Jan. 17, when it gained more than 20%

United Airlines also posted better-than-expected results for the first quarter, sending its stock higher by nearly 5%.

Morgan Stanley reported a record profit and revenue for the first quarter, as its trading business did better than expected. Shares of the investment bank climbed more than 1% before closing flat.

IBM reported Tuesday earnings and revenue that topped analyst expectations, but investors were left disappointed with the company's forward-looking guidance. Shares of IBM fell 7.5% and had their worst day since Oct. 24, 2014, when they dropped 7.6%.

Elsewhere, oil prices surged and hit their highest level in more than three years after a big drawdown in U.S. crude stockpiles. The move higher in oil lifted shares of energy companies, as Chevron and Exxon Mobil rose more than 1% each.

On the economic data front, the Federal Reserve said in the latest Beige Book the U.S. economic outlook remains positive, but noted that steel prices are rising due to tariffs.

Prices for the benchmark 10-year Treasury note faltered, raising yields to 2.88% from Tuesday’s 2.82%. Treasury prices and yields move in opposite directions.

Oil prices gained $2.22 a barrel to $68.74 U.S.

Gold prices picked up $1.80 to $1,351.30 U.S. an ounce.