Equities in Toronto hit a record high on Wednesday as upbeat quarterly results from Royal Bank lifted financials, while energy shares were subdued for the first time in four days after oil prices steadied.
The TSX Composite Index started Wednesday higher by 60.47 points at 20,608.27
The Canadian dollar dipped 0.21 cents to 79.18 cents U.S.
Royal Bank of Canada beat analysts' estimates for quarterly profit on Wednesday, after it released reserves set aside to cover credit losses and as the lender saw strong growth across its banking, wealth management and capital markets units.
RBC shares climbed $1.91, or 1.5%, to $133.96.
National Bank of Canada fell 61 cents to $99.08, despite posting
stronger-than-expected earnings.
The largest percentage gainers on the TSX were Lithium Americas, up $1.49, or 6.6%, to $24.06, and Canaccord Genuity, up 81 cents, or 5.5%, to $15.61, while Nuvei slid $2.10, or 1.4%, to $146.87, and Iamgold dropped eight cents, or 2.7%, to $2.91.
ON BAYSTREET
The TSX Venture Exchange lost 0.3 points to 880.49.
Eight of the 12 TSX subgroups were higher, with financials, up 0.9%, real-estate picked up 0.3%, and energy, better by 0.2%.
The four laggards were weighed most by gold, down 1.5%, materials, off 0.6%, and information technology, fading 0.1%.
ON WALLSTREET
U.S. stocks climbed higher Wednesday, helped by banks and reopening stocks as the 10-year Treasury yield climbed higher.
The Dow Jones Industrials gained 125.81 points to 35,491.87.
The S&P 500 gained 12.82 points to 4,499.05, surpassing Tuesday’s all-time record close.
The NASDAQ Composite improved on Tuesday’s record by 11.94 points to 15,031.24.
Shares of JPMorgan Chase, Bank of America and Wells Fargo improved about 2%. Regional banks like Zions and Fifth Third added 2% also.
Air carriers and cruise lines broadly added 1%. MGM Resorts gained 2% and Booking Holdings gained 1.5%.
Markets have been boosted by signs that delta variant cases could be peaking. Fundstrat’s Tom Lee said in a note to clients late Tuesday that the worst may be behind us, citing a falling positivity rate in Florida and Texas.
Johnson & Johnson said on Wednesday that its COVID Vaccine booster shot showed promising results in early stage clinical trials, significantly increasing virus-fighting antibodies.
Delta Airlines said Wednesday it would raise health insurance premiums for unvaccinated employees to cover higher COVID costs. The company has about 75,000 employees and roughly 75% of them are fully vaccinated. On Tuesday Goldman Sachs it will require employees to entering its offices to be fully vaccinated. Delta and Goldman added more 1.5% Wednesday morning.
Wells Fargo also sees more gains on the horizon, lifting its year-end S&P 500 target to 4,825 on Tuesday, which is 7.5% above where the index finished the day. The bank’s call is based on its strength through August carrying over into the final months of the year.
Dick’s Sporting Goods hit an all-time high Wednesday of $134.80 after reporting strong quarterly earnings before the bell. Nvidia shares rose 2% after the Department of Energy said its new supercomputer will run on the company’s computing platform.
The much-anticipated Jackson Hole symposium kicks off on Thursday, where central bankers will potentially provide updates on their plan around tapering monetary stimulus. The Federal Reserve has been purchasing at least $120 billion of bonds per month to curb longer-term interest rates and jumpstart economic growth as the pandemic wreaked havoc on the economy.
Chairman Jerome Powell is slated to make remarks on Friday.
Prices for 10-Year Treasurys dipped, pulling up yields to 1.33% from Tuesday’s 1.30%. Treasury prices and yields move in opposite directions.
Oil prices recovered 53 cents to $68.07 U.S. a barrel.
Gold prices faltered $16.20 to $1,792.30 U.S. an ounce.
