Investors in North America heaved a collective sigh of relief Tuesday as more and more signs appeared that the inflation bogeyman is looking less menacing.
The TSX Composite leaped 242.88 points, or 1.2%, to end Tuesday at 20,220.01 .
The Canadian dollar barreled ahead 0.44 cents to 74.80 cents U.S.
Resource stocks were at their mightiest Tuesday, as K92 Mining leaped 63 cents, or 9%, to $7.60, while Fortuna Silver Mines squeezed out gains of 28 cents, or 6.1%, to $4.84.
In gold stocks, Eldorado Gold acquired 92 cents, or 9.9%, to $10.24, while Iamgold took on 16 cents, or 6.5%, to $2.62.
Energy stocks also had a great day, with Precision Drilling advancing $5.63, or 5.4%, to $109.78, while Meg Energy towering 76 cents over Monday’s close, or 4.1%, to $19.25.
Cannabis concerns pointed the other way, with Canopy Growth settling 20 cents, or 4.1%, to $4.67, while Tilray lost 15 cents, or 3%, to $4.88.
On the economic calendar, Statistics Canada reports retail trade decreased 0.5% to $61.1 billion in September. Sales declined in seven of the 11 subsectors, led by sales at gasoline stations (-2.4%) and food and beverage stores (-1.3%). in September,
New housing prices declined by 0.2% month over month in October, following the 0.1% decline recorded in the previous month. Prices were up in five of the 27 census metropolitan areas surveyed, down in seven of them, and unchanged in the remaining 15. This was the first consecutive monthly decrease in the index since July 2019.
ON BAYSTREET
The TSX Venture Exchange climbed 5.23 points to 576.38.
All but one of the 12 TSX subgroups were positive, led by materials, hiking 3.4%, gold, soaring 3%, and energy, pumped up 2.6%.
Only health-care missed out, losing 0.9%.
ON WALLSTREET
Stocks kept rolling Tuesday as Wall Street looked past tightening COVID policies in China to instead focused on a host of strong earnings reports and the potential for smaller future rate hikes during a holiday-shortened trading week.
The Dow Jones Industrials flew 397.82 points, or 1.2%, to wrap up the day at 34,089.10
The S&P 500 zoomed 53.64 points to 4,003.58.
The NASDAQ ticked higher 149.9 points, or 1.4%, to 11,174.41. Mixed earnings results led to a few big stock moves - Best Buy popped 11% after the electronics retailer hiked its 2023 fiscal outlook and beat earnings expectations, while Abercrombie & Fitch hiked 19% and American Eagle Outfitters spiked 16%. On the flip side, Zoom fell 5.4% amid disappointing earnings and Dollar Tree slipped about 9% after a lower-than-expected outlook.
China saw its first deaths in the mainland from COVID since May over the weekend. It prompted fears among investors that the country could bring back restrictions meant to slow virus spread, which would hurt business.
Economic reports due out include the Philadelphia Fed’s nonmanufacturing business outlook survey and the Richmond Fed’s manufacturing index.
Investors are also watching for earnings reports from HP Inc and Nordstrom after the bell. The stock market will be closed on Thursday for the Thanksgiving holiday and will close early on Friday.
Prices for the 10-year Treasury climbed, lowering yields to 3.76% from Monday’s 3.83%. Treasury prices and yields move in opposite directions.
Oil prices stayed buoyant $1.10 to $81.14 U.S. a barrel.
Gold prices hung onto gains of 90 cents to $1,740.50 U.S. an ounce.
