Canada's main stock index gained strength on Tuesday as investors appeared hesitant to take major positions ahead of a key U.S. Federal Reserve policy meeting.
The S&P/TSX composite index regained 27.98 points to close at 15,510.54
The Canadian dollar gained 0.68 cents to 91.16 cents U.S.
Consumer staples led the parade of gainers, as Loblaw Companies hiking $1.60, or 2.9%, to $57.18, and Empire Co. up $1.67, or 2.2%, to $78.72.
Financials gained with Bank of Nova Scotia moving up five cents to $73.07, and Toronto-Dominion Bank giving back 15 cents to $57.47.
The materials sector, which includes mining stocks, enjoyed only slight gains as commodity prices remained choppy. Goldcorp shed a dime to $27.78, and Teck Resources increased 34 cents to $23.68.
In the economic docket, Statistics Canada reported this morning that Canadian manufacturing sales increased 2.5% to $53.7 billion in July, largely as a result of higher sales in the transportation equipment and primary metal industries.
ON BAYSTREET
The TSX Venture Exchange stayed negative 5.80 points to 975.70.
All but four of the 14 Toronto subgroups were higher on the day, led by consumer staples, strengthening 1.1%, while global base metals and energy each sprinted up 0.4%.
The four laggards were weighed mostly by telecoms, down 0.5%, while information technology and real-estate each lost 0.2%.
ON WALLSTREET
The U .S. equity market rallied in early afternoon Tuesday, driven by big gains in energy sector stocks, as investors turned modestly optimistic ahead of the key Federal Reserve meeting.
The Dow Jones Industrials revved up 100.83 points to close at 17,131.97.
The S&P 500 added 14.85 points to 1,998.98. The NASDAQ improved 33.86 points to 4,552.76
Majesco Entertainment Co. fell 19% after a similar drop late Monday when the video-game maker posted a larger-than-expected third-quarter loss.
Wynn Resorts Ltd. dropped 2.1%, falling for a third trading session amid declining revenue concerns from its properties in Macau. However, one analyst noted that Wynn’s recent drop has made it a fair value at current prices.
Humana Inc. shares rallied 3.2% after the health insurance company unveiled a $2-billion U.S. buyback program that will replace its current share repurchase program.
Tesla Motors Inc. rose 1.6% recouping some of the sharp losses Monday when a Morgan Stanley argued that the electric-car maker’s stock is overvalued. An analyst, however, advised in a note Tuesday that investors buy Tesla on weakness, reiterating an overweight rating and a 12-to-18-month price target of $385.00 U.S.
The U.S. Federal Open Market Committee’s two-day policy meeting began Tuesday morning and many worry the policy makers will take a hawkish stand on interest rates.
In economic news, producer prices were flat in August thanks to falling gasoline and food costs, another sign that inflationary pressure is receding. It was the lowest reading in the producer price index since December, the U.S. Labor Department reported.
Prices for 10-year U.S. Treasuries staggered, raising yields back to Monday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.88 to $94.80 U.S. a barrel.
Gold prices recovered $1.20 to $1,236.30 U.S. an ounce.
