Canada's main stock index made its way gradually higher midday Wednesday, as investors weighed weakness in energy shares against gains in the materials and technology sectors and hopes of fresh U.S. stimulus.
The TSX opened gained 39.5 points Wednesday noon to 17,545.98
The Canadian dollar doffed 0.35 cents to 78.38 cents U.S.
The gains in the materials sector were led by Labrador Iron Ore Royalty, progressing $1.09, or 3.4%, to $33.18, and SilverCrest Metals, up 13 cents, or 1.7%, to $7.90.
Air Canada fell $2.26, or 8.6%, the most on the TSX, to $ 24.08, after the “Maple Leaf Airline” announced the pricing of its public offering of shares. The second-biggest decliner was marine port service provider Westshore Terminals Investment down $1.06, or 6.1%, to $16.36.
On the economic slate, Statistics Canada reported November’s consumer price index rose 1.0% on a year-over-year basis in November, up from a 0.7% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.3% in November, matching the increase in October.
Also, the agency non-residents added $6.9 billion of Canadian securities to their portfolios in October, with the bulk of the investment in government bonds. Meanwhile, Canadian investors acquired $8.0 billion of foreign securities, largely foreign government bonds.
Elsewhere, wholesale sales jumped 1.0% in October to $66.7 billion. It was the sixth consecutive increase for the sector.
Finally, the Canadian Real Estate Association said MLS sales edged back by 1.6% in November. Small declines in October and November notwithstanding, monthly activity is still running well above most of history.
ON BAYSTREET
The TSX Venture Exchange gained 4.87 points to 796.11.
The 12 TSX subgroups were evenly divided, with information technology headed higher 1.7%, gold up 1.1%, and materials advancing 0.6%.
The half-dozen laggards were weighed down most by energy, sputtering 2.1%, utilities down 0.9%, and industrials, off 0.6%.
ON WALLSTREET
Stocks hovered around the flatline on Wednesday as traders weighed the apparent progress in the U.S. fiscal stimulus talks and disappointing economic data.
The Dow Jones Industrials remained red by lunch time 23.92 points to 30,175.39.
The S&P 500 recovered 8.11 points to 3,702.73.
The NASDAQ advanced 50.4 points from Tuesday’s record closing high, to 12,645.46.
Wall Street was coming off a strong session in which the major averages all gained more than 1%.
Politico reported Congress was on the brink of a $900-billion rescue deal that would include a new round of direct payments to consumers. However, that package would exclude a liability shield for businesses and state and local aid.
The report came after House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy met Tuesday to strike a bipartisan aid deal. Treasury Secretary Steven Mnuchin called into the talks.
The deadline on stimulus looms amid some of the darkest days of the pandemic. The U.S. is recording at least 215,400 new Covid-19 cases and at least 2,300 virus-related deaths each day, based on a seven-day average using Johns Hopkins University data.
Wednesday’s gains were kept in check by a steeper-than-expected drop in U.S. retail sales. The Commerce Department said retail sales fell by 1.1% in November. Economists polled by Dow Jones expected a decline of 0.3%.
Prices for the 10-Year Treasury dipped, raising yields to 0.92% from Tuesday’s 0.91%. Treasury prices and yields move in opposite directions.
Oil prices regained eight cents to $47.70 U.S. a barrel.
Gold prices hiked $2.90 to $1,858.20
