Equity markets in Toronto rose on Tuesday as a rebound in commodity prices, following recent selloffs, helped drive up shares of energy and mining companies.
The S&P/TSX composite index regained 64.95 points – after Monday’s 200-point-plus plunge, to open Tuesday at 14,490.50
The Canadian dollar inched up 0.05 cents at 77 cents U.S.
Canadian National Railway reported stronger than expected second-quarter earnings and said it continues to expect double-digit growth in earnings per share for the full year on Monday, even as shipment volume slipped. Excluding a deferred tax expense, adjusted earnings rose 12% to $1.15 a share.
CN shares galloped $2.62, or 3.4%, to $80.52.
Barclays cut the price target on Lundin Mining to $7.00 from $8.00, expecting a weaker second-quarter compared to previous quarter due to moderating production.
Lundin shares gathered 11 cents, or 2.3%, to $4.84.
Barclays cut the price target on Teck Resources to $15.00 from $20.00, anticipating a weaker second-quarter primarily driven by lower realized coal prices, lower zinc sales volumes and negative pricing adjustments on the base metals.
Teck shares rallied 33 cents, or 3.1%, to $10.95.
Canadian Pacific Railway reports earnings today, expecting Q2 earnings of $2.46 per share. CP shares took on $2.13, or 1%, to $208.48.
Canfor Corp. also reports, expecting Q2 earnings of 16 cents per share. Canfor shares bucked the trend and declined 47 cents, or 1.7%, to $27.66.
ON BAYSTREET
The TSX Venture Exchange gained 1.26 points to 618.23.
Nine of the 14 TSX subgroups recovered early Tuesday, gold recouping 3.6%, while energy and materials each climbed 2.1%
The five laggards were weighed mostly by telecoms, down 0.5%, consumer discretionary stocks, off 0.4%, and consumer staples, sliding 0.3%.
ON WALLSTREET
U.S. stocks traded mostly lower on Tuesday as investors weighed some lackluster earnings reports in some Dow components.
The Dow Jones industrial average dumped 114.98 points to 17,985.43, as IBM and United Technologies plunged more than 4%and 6%, respectively.
The S&P 500 doffed 0.59 points to 2,127.69, with telecommunications leading six sectors lower and energy the greatest advancer.
The NASDAQ index eked up 2.12 points to 5,220.98, yet another intraday high.
IBM reported earnings after the close Monday that missed on revenue, which fell for the 13th consecutive quarter. Both earnings per share and revenue were 13% lower than the year-ago period.
Shares of the tech firm fell about 6% in pre-market trade.
United Technologies earned $1.73 U.S. per share for the second quarter, two cents above estimates, with revenue shy of forecasts. The industrial conglomerate also cut its full-year forecast, in part to reflect the just-announced sale of its Sikorsky Aircraft unit to Lockheed Martin.
Another blue chip, Verizon, also declined with a fall of about 2.5% as revenue came in below estimates. The telecom firm did post earnings three cents a share above estimates with second-quarter profit of $1.04 U.S. per share. Wireless revenue was up 5.3% compared to a year earlier, while FiOS revenue increased by 10%
The stock also weighed on the telecommunications sector, down more than 1.5% as the worst performer in the S&P 500.
Tech giants Apple and Microsoft post quarterly results after the close. Both stocks traded about 0.5% lower.
No economic data is due Tuesday. The only reports expected for the week are in the housing market, with the FHFA home prices and existing home sales scheduled for Wednesday.
Companies reporting earnings before the bell Tuesday included Travelers, Baker Hughes and Bank of NY Mellon.
Travelers reported adjusted profit of $2.52 U.S. per share, beating estimates of $2.12 U.S., though revenue was slightly below forecasts. The insurers' bottom line was helped by a significant drop in catastrophe losses.
Prices for 10-year U.S. Treasuries were gained slightly, lowering yields to 2.37% from Monday’s 2.38%. Treasury prices and yields move in opposite directions.
Oil prices raised themselves 36 cents a barrel to $50.51 U.S.
Gold prices slid $3.80 to $1,103 U.S. an ounce.
