Equities in Canada’s largest centre rose on Tuesday despite a sticky domestic inflation reading, as the market stretched recent gains betting that the U.S. Federal Reserve could start cutting interest rates next year.
The TSX Composite surged 186.66 points to move into Tuesday afternoon at 20,809.31.
The Canadian dollar spiked 0.34 cents at 74.97 cents U.S.
Among individual stocks, refiner Imperial Oil forecast 2024 upstream production higher than its 2023 outlook. IMO shares gained 49 cents to $76.27.
CIBC downgraded automotive supplier Magna International to "neutral" from "outperformer", while it upgraded Boyd Group Services to "outperformer" from "neutral". Magna shares took on 13 cents to $76.56, while Boyd gained $3.70, or 1.4%, to $272.81.
On the economic front, the Consumer Price Index rose 3.1% on a year-over-year basis in November, matching the 3.1% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.3% in November.
As well, Statistics Canada reported its industrial product price index fell 0.4% month over month in November and was 2.3% lower than in November 2022, while its raw materials price index decreased 4.2% on a monthly basis in November and fell 4.6% year over year.
ON BAYSTREET
The TSX Venture Exchange gained 3.95 points to 537.50.
All 12 subgroups were higher in the first hour, with gold gaining 2.6%, materials climbing 2.4%, while financials picked up 0.9%.
ON WALLSTREET
The S&P 500 rose Tuesday as the recent rally in stocks following a dovish shift from the Federal Reserve helped lift the broader index near its record high.
The Dow Jones Industrials vaulted 190.93 points to observe noon EST Tuesday at 37,496.95.
The S&P 500 climbed 19.33 points to 4,759.89.
With Tuesday’s gain, the S&P 500 is about 0.8% from surpassing its record close and 1.3% from equaling its intraday record, both set in January of 2022.
The NASDAQ jumped 52.67 points to 14,957.86.
Boeing was the biggest performer in the Dow, with shares up by more than 1%. Meanwhile, solar stocks Enphase Energy and First Solar were the greatest advancers in the S&P 500, Enphase up by about 8% and First Solar taking on 6%.
Communication services outperformed, with shares of Meta Platforms higher by more than 1%, while Alphabet shares gained 0.7%.
All three major averages on pace to finish December with gains. The S&P 500 is up more than 4% for the month and coming off its longest weekly winning streak since 2017. The Dow has advanced 4% and NASDAQ has jumped 5%.
Prices for the 10-year Treasury gained ground, lowering yields to 3.91% from Monday’s 3.94%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.53 to $74.00 U.S. a barrel.
Gold prices progressed $17.80 at $2,058.30.
