Energy stocks outperformed the main Canadian market on Tuesday as oil prices extended a rebound from their worst week in nine months, while financial stocks slipped despite upbeat quarterly reports from two of the country’s major banks.
The TSX Composite Index gained 53.47 points to open for business Tuesday at 20,530.73
The Canadian dollar added 0.16 cents to 79.19 cents U.S.
Bank of Nova Scotia beat analysts' estimates for third-quarter profit on Tuesday, driven by smaller-than-expected provisions and improvement in its Canadian and international banking divisions from last year's sluggish performance.
Scotiabank shares took on 28 cents to $80.51.
Bank of Montreal beat analysts' estimates for third-quarter profit on Tuesday, as it released reserves set aside to cover credit losses and saw growth across its business.
BMO gained $2.06, or 1.6%, to $130.78.
Canaccord Genuity raises the rating on Precision Drilling to buy from hold. Precision shares vaulted $1.13, or 2.9%, to $39.72.
Canaccord Genuity also cut the target price on Total Energy Services to $6.00 from $6.50. Total shares bettered themselves two cents to $3.99.
Finally, Canaccord Genuity initiated coverage on Great Bear Royalties with a speculative buy rating. Great Bear shares stepped backward 16 cents, or 1.2%, to $13.33.
ON BAYSTREET
The TSX Venture Exchange eased off 0.3 points to 877.
The 12 TSX subgroups were evenly divided, with energy charging ahead 1.2%, information technology better by 0.6%, and consumer discretionary stocks improving 0.4%.
The half-dozen laggards were weighed most by real-estate, down 0.8%, while utilities and gold each slid 0.6%.
ON WALLSTREET
Stocks edged higher Tuesday morning following a broad-based rally on news that U.S. regulators granted full approval for Pfizer-BioNTech’s COVID vaccine.
The Dow Jones Industrials jumped 77.51 points to 35,413.22.
The S&P 500 improved 8.92 points to 4,488.45.
The NASDAQ Composite hopped 52.11 points to 14,994.76, also a new peak.
The market started the week on a high note as shares sensitive to an economic recovery jumped on optimism that the vaccine approval would clear a path for more mandates in the face of the spread of the delta variant.
Chinese stocks are leading the NASDAQ as investors have been getting more clarity on China’s regulatory outlook and buying shares of names that have taken a beating lately. Pinduoduo jumped 15% while JD.com rose 10% and Didi climbed 8.9%.
Best Buy shares rose 6% after the electronics retailer beat estimates on the top and bottom lines for the second quarter. Nordstrom is set to report earnings after the close.
The second-quarter earnings season is winding down with more than 90% S&P 500 companies having reported results. S&P 500 is poised to grow its earnings by 94.7% year over year,
Investors are eyeing the Jackson Hole symposium later this week, which is expected to be a market-moving event where central bankers could detail their plans for tapering monetary stimulus. The Federal Reserve has started discussions to pull back its $120 billion a month bond-buying program by the end of this year.
Investors will get a look at residential home sales this morning as well as the Richmond Fed’s business activity survey.
Prices for 10-Year Treasurys sagged, pulling up yields to 1.28% from Monday’s 1.26%. Treasury prices and yields move in opposite directions.
Oil prices climbed $1.28 to $66.92 U.S. a barrel.
Gold prices were better $1.90 to $1,808.20 U.S. an ounce.
