Stocks Find Way Slowly Upward

Canada Goose, Whitecap in Focus

Canada's main stock index rose on Tuesday as housing starts gained in July, bolstering hopes of an economic rebound from the COVID-19 pandemic.

The S&P/TSX Composite Index slid 20.31 points to move into noon hour Tuesday at 16,585.19

The Canadian dollar bounced 0.30 cents higher to 75.19 cents U.S.

A report in the Globe and Mail says Federal Finance Minister Bill Morneau could lose his job amid disagreements with Prime Minister Justin Trudeau over how to steer the economy through the coronavirus outbreak.

Canada Goose Holdings fell $1.52, or 4.6%, to $31.64, after the apparel maker said it would cut production and open fewer new stores this year to tackle coronavirus-induced strain on its business.

The largest percentage gainers on the TSX were Whitecap Resources, up 11 cents, or 4.1%, to $2.79, and Imperial Oil, which rose 77 cents, or 3.5%, to $23.07.

Silvercorp Metals fell 81 cents, or 7.5%, the most on the TSX, to $9.99. The second-biggest decliner was Pan American Silver, down $4.66, or 9.6%, to $43.73, after Deutsche Bank cut its recommendation to "hold" from "buy".

Vancouver based NetCents announced a collaboration with Visa introducing the NetCents Visa credit card. The co-branded card enables crypto currency wallet holders and traders real-time seamless purchasing power using crypto currencies for in-store and online transactions with the more than 40 million merchants that accept Visa worldwide.

NetCents shares doffed 21 cents, or 14.6%, by noon EDT Tuesday, to $1.23.

ON BAYSTREET

The TSX Venture Exchange docked 25.41 points, or 3.4%, to kick off Tuesday at 722.36.

Eight of the 12 TSX subgroups were moving forward in the first hour, with energy gushing 2.7%, consumer discretionary stocks progressing 1.9%, and real-estate building 1.3% higher.

The four laggards were weighed most by gold, down 6%, materials, stumbling 4.7%, and health-care, off 1.8%.

ON WALLSTREET

The S&P 500 rose on Tuesday, putting it on the cusp of a fresh all-time high amid a rotation out of technology shares and into stocks that would benefit from a reopening of the economy and a vaccine, such as cruise lines and airlines.

The Dow Jones Industrials leaped 277.03 points, or 1%, to stride into noon hour at 28,068.47.

The S&P 500 chugged ahead 13.56 points to 3,374.03, and was within half a percentage point of reaching its Feb. 19 record of 3,393.52

The once high-flying NASDAQ fell 17.18 points by noon to 10,951.17

Sentiment was lifted overnight after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first COVID-19 vaccine.

While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn’t pricing in how quickly a valid one could be ready.

A Johnson & Johnson executive also told Reuters the company could produce one billion doses of its vaccine candidate if it proves to be successful. J&J shares dipped 0.2%, however.

Shares of companies that would benefit most from a vaccine jumped in early trading. American Airlines gained 6.5%. Norwegian Cruise Lines climbed 6.5% as well. Casino shares rose. Mall-owner Simon Property Group was higher by 5%. Gap shares climbed by 4.9%.

Major tech shares struggled. Apple, Netflix and Microsoft were all down at least 0.8%. Alphabet slid 0.1%.

Prices for the 10-Year Treasury stumbled, raising yields to 0.65% from Monday’s 0.58%. Treasury prices and yields move in opposite directions

Oil prices added 30 cents to $42.24 U.S. a barrel.

Gold prices lost $85.70 to $1,954.00 U.S. an ounce.