Equities in Canada’s largest centre vaulted by noon EST on Tuesday, on optimism around the earnings season, although a slide in crude prices kept gains in check.
The S&P/TSX Composite gained 118.65 points to pause for lunch Tuesday at 21,354.15
The Canadian dollar faded 0.29 cents at 78.66 cents U.S.
Among individual stocks, oil and gas producer Cenovus Energy slumped $1.06, or 5.4% to $18.50, after it posted a wider quarterly loss, primarily due to non-cash impairment of $1.9 billion Canadian in the U.S. manufacturing segment.
Thomson Reuters fell $3.78, or 2.8%, after it missed fourth-quarter earnings forecasts. The stock’s price at noon hour was $129.36.
On the economic front, Statistics Canada reported merchandise imports rose 3.7% in December, while exports were down 0.9%. As a result, Canada's merchandise trade balance returned to a deficit position, moving from a surplus of $2.5 billion in November to a deficit of $137 million in December.
ON BAYSTREET
The TSX Venture Exchange inched up 1.61 points to 860.26.
All but one of the 12 TSX subgroups were in the green midday, with materials zooming 1.7%, industrials muscling up 1.4%, and gold, 1.2% brighter.
Only energy missed the festivities, off 3.1%.
ON WALLSTREET
U.S. stocks rose slightly on Tuesday as investors digested another batch of corporate earnings and awaited key inflation data later this week.
The Dow Jones Industrials barreled 301.55 points to open Tuesday at 35,392.68.
The S&P 500 recovered 25.9 points to 4,509.77
The NASDAQ leaped 109.72 points to 14,125.39.
Corporate earnings were driving stock moves on Tuesday. Harley-Davidson jumped 8% after the company reported a surprise profit for the
fourth quarter. Amgen and Chegg also rose following quarterly updates.
Shares of American Express and JPMorgan each rose more than 1%, boosting the Dow.
However, Pfizer shares tumbled 3.6% after the drugmaker’s fourth-quarter revenue came in lower than Wall Street analysts expected. Pfizer’s full-year earnings guidance also disappointed.
Elsewhere, Peloton shares rose 18% after the interactive fitness company said it will slash 2,800 jobs in a restructuring effort that will see CEO John Foley step down and transition to executive chair.
The company will report earnings Tuesday after the market closes and during what’s been a turbulent time for the company. The stock surged 20.9% on Monday following reports the company could be a takeover target.
Shares of Snap, which have been volatile during a mixed earnings season for social media stocks, fell 4.7% after the social media company announced a new debt offering.
As of Tuesday morning, about 300 S&P 500 components have reported, with 77% exceeding earnings estimates and 75% topping revenue expectations. However, the strong results have not been enough to dig the market out of the hole created by January’s slide, and weak forward guidance may be part of what is holding back a rebound.
On the economic data front, the Census Bureau said Tuesday that December’s trade balance was a deficit of $80.7 billion. Economists surveyed by Dow Jones survey were expecting a shortfall of $82.8 billion.
Prices for 10-year Treasurys fell, raising yields to 1.96% from Monday’s 1.92%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.36 to $88.96 U.S. a barrel.
Gold prices were up $5.50 to $1,827.30 U.S. an ounce.
