Canada's main stock index rose on Tuesday, lifted by energy stocks after Canadian data showed strong October growth and the U.S. Commerce Department boosted its third-quarter growth estimate.
The S&P/TSX composite index improved 135.15 points to greet noon at 14,567.53
The Canadian dollar eked up 0.07 cents to 86.07 cents U.S.
Energy shares moved higher as the strong U.S. growth data steadied oil prices, balancing downward pressure from a supply glut.
TransCanada and Suncor Energy played the biggest role in pulling the index higher. TransCanada shares rose 2.1% to $56.55, while
Suncor was up 1.6% at $37.45.
Financial stocks edged up, and the materials sector rose as spot gold rebounded from a three-week low hit in the previous session. TD shares hiked 1.1% to $55.03, while Barrick Gold gained 1.8% to $12.23.
On the economic beat, Statistics Canada revealed this morning that real gross domestic product grew 0.3% in October, following a 0.4% increase in September. The agency attributes the rise to educational services, mining and oil and gas extraction as well as manufacturing.
ON BAYSTREET
The TSX Venture Exchange gained 2.66 points to 671.02
All but one of the 14 Toronto subgroups were higher, with metals and mining stocks soaring 3.1%, gold up 2.8%, and materials better by 2.1%
The lone laggard was health-care, less hale by 1.6%.
ON WALLSTREET
U.S. stocks furthered record gains on Tuesday, with investor sentiment bolstered by the data that had the economy expanding in the third quarter by the most in 11 years.
The Dow Jones Industrials moved up 87.75 points to pause for lunch at 18,047.19, with materials pacing gains and health care the sole laggard among its 10 main sectors.
The S&P 500 gained 4.91 points to 2,083.45
The NASDAQ index fell 10.84 points to 4,770.57, with biotechnology names weighing on the index.
Shares of Gilead on Tuesday fell another 4.7%, after yesterday 14% plummet on word that Express Scripts Holding said it would no longer cover the drugmaker's hepatitis C treatment in most cases.
Walgreen rose after the drugstore chain reported quarterly earnings that topped estimates; Keurig Green Mountain fell as the coffee recalled 6.6 million of its Mini Plus coffee makers because of a possible burn hazard.
The market jump came as investors learned that the U.S. economy grew at an incredible 5% in third quarter. It was the strongest quarter of growth since 2003.
Other reports had consumer sentiment at 93.6 in December versus a 93.5 estimate and the sale of new single-family homes falling for a second month in November.
Prices for 10-year U.S. Treasuries fell, raising yields to 2.21% from Monday’s 2.18%. Treasury prices and yields move in opposite directions.
Oil prices added 90 cents per barrel to $56.16 U.S.
Gold prices dipped $1.70 an ounce at $1,178.10 U.S.
