Stocks Pick up Where They Left Off, Gaining Triple Digits

Big Tech Takes Off

Equities in Canada’s biggest stock market rose on Tuesday as domestic factory sales rose for a third straight month in July, signalling that a post-pandemic economic rebound was on track.

The TSX sprang up 115.4 points to open Tuesday at 16,475.54.

The Canadian dollar gained 0.14 cents to 76.03 cents U.S.

On the economic beat, Statistics Canada reported manufacturing sales increased for the third consecutive month, rising 7.0% to $53.1 billion in July.

The Canadian Real Estate Association reported Tuesday home sales recorded over Canadian MLS® Systems increased a further 6.2% in August, raising them to another new all-time monthly record. Actual (not seasonally adjusted) activity was up 33.5% year-over-year.

ON BAYSTREET

The TSX Venture Exchange gained 2.93 points to 744.66.

All 12 TSX subgroups were higher in the first hour, with gold shining 1.6% brighter, while materials and energy popped 1.5% each.

ON WALLSTREET

Stocks jumped on Tuesday, building on the strong gains from the previous session, on the back of further tech gains and solid economic data.

The Dow Jones Industrials gained more traction at Tuesday’s opening bell, jumping 177.09 points to 28,170.42.

The S&P 500 progressed 31.26 points to 3,414.80.

The NASDAQ screamed higher 153.88 points, or 1.4%, to 11,101.22, continuing its recovery from its worst week since March.

Apple added 2.3%, and Microsoft 1.6%. Amazon and Alphabet were each up more than 1%. Netflix climbed 1.4% and along with Facebook. Tesla shares, meanwhile, popped 3.7% after surging more than 12% on Monday.

The tech sector could generate more market-moving headlines on Wednesday, with Apple expected to announce new products at a digital-only event. The company is not expected to release a new iPhone, however.

Sentiment was boosted on Monday by positive news on the vaccine front, with AstraZeneca resuming its phase three trial in the United Kingdom and Pfizer CEO Albert Bourla saying over the weekend the company should be able to present key data from its trial to regulators by the end of October.

Optimism about the United States getting a better handle on the virus was a major reason that LPL Financial raised its year-end target for the S&P 500 to a range of 3,450–3,500 on Monday. That target implies an upside of roughly 2% for the market over the rest of the year.

In the U.S., the Empire State Manufacturing index came in at 17 for September, rebounding from a print of 3.7 in August. Economists polled by Dow Jones expected the index to come in at 7.

Stocks also got a boost after China reported its first retail sales increase for the year. The country’s National Bureau of Statistics said Chinese retail sales rose 0.5% in August.

Prices for the 10-Year Treasury were lower, raising yields to 0.68% from Monday’s 0.67%. Treasury prices and yields move in opposite directrions.

Oil prices increased 43 cents to $37.69 U.S. a barrel.

Gold prices improved eight dollars to $1,971.70 U.S. an ounce.