Stocks Pop by Close

Energy, Health-care Rumble Higher

Equities in Canada’s largest market recovered from initial losses and moved higher by triple digits, powered largely by strong performance in energy and health-care concerns.

The S&P/TSX leaped 109.12 to conclude Tuesday at 20,928.21

The Canadian dollar added 0.33 cents to 79.81 cents U.S.

Energy stocks were on a mission Tuesday, with Baytex surging 48 cents, or 6.1%, to $8.34, while Vermilion soared $1.64, or 5.6%, to $31.04.

In health-care, Cronos Group picked up 18 cents, or 5%, to $3.77, while Aurora Cannabis muscled up nine cents, or 4.7%, to $2.02.

Communications also sprang up, with Quebecor acquiring 52 cents, or 1.9%, to $27.74, while BCE jumped 69 cents, or 1%, to $68.90.

Consumer staples let the side down somewhat, with Loblaw flopping $1.70, or 1.5%, to $115.27, while Empire Company floundered 48 cents, or 1.2%, to $40.63.

In materials, West Fraser Timber slipped $2.63, or 2.2%, to $115.37, while Nutrien dropped $4.20, or 3.7%, to $111.83.

In consumer discretionary stocks, Aritizia fell $1.35, or 3.5%, to $37.24, while Sleep Country dozed 76 cents, or 2.8%, to $26.34.

On the economic slate, Statistics Canada says growth in Canadian merchandise imports and exports slowed in April, with imports rising 1.9% and exports increasing 0.6%.

As a result, the agency concludes, Canada's merchandise trade surplus with the world narrowed from $2.3 billion in March to $1.5 billion in April.

The IVEY Purchasing Managers Index ballooned to 72 in May, from 66.3 in April and showed a vast improvement over the 64.7 figure for May 2021.

ON BAYSTREET

The TSX Venture Exchange righted the ship and gained 4.14 points, after spending much of the session in the red, to 722.77.

The 12 subgroups split right down the middle, with energy leading the six gainers up 2.4%, while health-care powered ahead 0.7%, while communications prospered 0.6%.

The half-dozen laggards were weighed most by consumer staples, down 0.6%, materials, off 0.5%, and consumer discretionary stocks, fading 0.4%.

ON WALLSTREET

Stocks rose for a second straight session on Tuesday even after Target issued a warning about its current quarter’s profits, which put pressure on the broader retail sector.

The Dow Jones Industrials roared out of negative territory, picking up 264.36 points to end the day at 33,180.14.

The S&P 500 gained 39.25 points, or 1%, to 4,160.68.

The NASDAQ Composite jumped 113.86 points to 12,175.23.

The gains for the averages came in spite of weakness for retail stocks.

Target shares fell 2.3% after the retailer announced plans to work down excess inventory, though the stock trimmed its losses as the session progressed. The company said it will implement additional markdowns to products and cancel some orders.

Target also lowered its operating margins guidance for the quarter. Walmart shares followed Target lower, sliding 1.2%. Amazon fell 1.4%.
Major retailers have delivered mixed results and outlooks in recent weeks, adding to stock market volatility as investors try to determine if the announcements signal the start of a potential recession or a rapid change in consumer spe

Energy was one of top performing sectors on Tuesday as oil futures hovered near $120 per barrel. Exxon jumped more than 4% following an upgrade from Evercore ISI, putting the stock above $100 per share for the first time since 2014. Phillips 66 forged ahead 3.7%, and Chevron gained about 1.9%.

Shares of Apple rose 1.7%, helping to boost the tech sector. In corporate deal news, Kohl’s jumped 9.5% after the retailer said it was in exclusive negotiations with Franchise Group about a potential takeover.

Elsewhere, J.M. Smucker rose 5.7% following a better-than-expected quarterly report for the food company.

Treasury prices recovered strength, lowering yields to 2.98% from Monday’s 3.05%. Treasury prices and yields move in opposite directions.

Oil prices regained $1.54 to $120.04 U.S. a barrel.

Gold prices hiked $12.10 to $1,855.80 U.S. an ounce.