TSX Hangs onto Gains

Energy Still Rumbles

Equities in Canada’s largest centre pointed positively once again Tuesday, thanks to strength in energy and financial stocks.

The TSX Composite Index gained 12.11 points to conclude Tuesday at 16,681.92

The Canadian dollar slipped 0.05 cents to 75.99 cents U.S.

Energy stocks were again the king, as EnCana shares sprinted 46 cents, or 7.8%, to 6.33, while Baytex Energy took on nine cents, or 5.6%, to $1.69.

Financials had a fine day, too, as Element Fleet Management added 19 cents, or 1.7%, to $11.53, while Home Capital Group gained 36 cents, or 1.3%, to $27.98.

Among consumer staples, Maple Leaf Foods staged something of a comeback from the doldrums, picking up 87 cents, or 3.8%, to $24.00, while Premium Brands Holdings advanced $1.88, or 2.2%, to $86.56.

Gold headed south, however, as Centerra Gold docked 38 cents, or 3.6%, to $10.27, while Detour Gold slumped 66 cents, or 3.2%, to $19.79.

In the tech field, Shopify gave back $15.63, or 3.8%, to $389.60, while Sierra Wireless subtracted 58 cents, or 3.8%, to $14.84.

In utilities, Fortis sank 96 cents, or 1.8%, to $53.20, while Algonquin Power and Utilities dipped 25 cents, or 1.4%, to $17.67.

On the macroeconomic side, Statistics Canada reported Canada's imports fell 1.7% in September, while exports declined 1.3%. As a result, Canada's merchandise trade deficit with the world narrowed from $1.2 billion in August to $978 million in September.
ON BAYSTREET

The TSX Venture Exchange turned red 3.04 points at 538.66

Eight of the 12 Toronto subgroups were positive, headed by energy, gushing 1.3%, while financials were 0.5% richer and consumer staples improved 0.4%.

The four laggards were weighed most by gold and information technology, each folding 1.7%, and utilities, fading 0.8%,

ON WALLSTREET

The Dow Jones Industrial Average rose slightly to a fresh record on Tuesday, lifted by strong economic data and new developments between the U.S. and China on trade.

The 30-stock index acquired 30.52 points to a new record closing high of 27,492.63, for its third straight gain.

Dow-component Boeing gained 2% after the company said the CEO would forgo bonuses this year amid the 737 Max crisis.

Better-than-expected economic data helped left the Dow. A gauge for U.S. services activities topped expectations for October. The Institute for Supply Management non-manufacturing index came in at 54.7, as compared with a 53.5 estimate as forecast by economists polled by Dow Jones.

The S&P 500 descended from Monday’s record close, dipping 3.65 points to 3,074.62, as underperformance in real estate and utilities sectors capped gains in the broad market.

The financial sector was the best-performing group among 11 S&P 500 sectors as yields continued to rise on trade-deal hopes. Bank of America was up 1.3%, while J.P. Morgan rose 0.2%.

The Dow’s year-to-date gain now stands at nearly 18% after rallying 3.4% in the past month. The S&P 500 is up more than 22% this year after surging 4.1% in the past month.

The NASDAQ narrowly gained, picking up 1.48 points to 8,434.68, weighed down by a 1.6% loss in Netflix shares.

Shares of Walgreens Boots Alliance rose 2.6% on reports the company has been exploring a deal to go private.

The corporate earnings season has largely been better than expected as 75% of the S&P 500 companies that have reported topped analyst expectations. Adobe surged 5% on Tuesday after the software company issued better-than-expected guidance for fiscal year 2020.

The U.S. trade deficit with its global partners contracted to $52.5 billion in September as the U.S. and China worked towards a tariff truce, according to a Commerce Department report Tuesday.

Prices for the benchmark 10-year U.S. Treasury fell sharply, raising yields to 1.85% from Monday’s 1.78%. Treasury prices and yields move in opposite directions.

Oil prices gained 62 cents to $57.16 U.S. a barrel.

Gold prices tumbled $24.90 to $1,486.20 U.S. an ounce.