Equities in Canada’s biggest centre rose on Wednesday, after briefly turning negative, as financial and energy stocks helped guide the market higher and markets cheered forecast-beating crude inventory data out of the United States.
The S&P/TSX composite index rebounded 139.37 points to greet noon at 14,216.73
The Canadian dollar regained 0.2 cents to 77.57 cents U.S.
The most influential movers on the index were financial names, with Royal Bank of Canada rising 1.4% to $74.67, and Toronto-Dominion Bank advancing 1.5% to $51.93.
Manulife Financial Corp and Sun Life Financial Inc were also up, with Manulife climbing 1.7% to $22.88 and Sun Life gaining 2.4% to $42.31.
Energy stocks rose on the heels of U.S. crude prices that reversed losses after investors cheered the latest forecast-beating fall in U.S. inventory data. Oil prices have been under immense pressure due to excess global supply.
Suncor Energy shares rose 1.3% to $33.61.
In individual company news, Bombardier Inc was up 4.4% at $1.90 on a report that said the plane and train maker was in talks with German engineering group Siemens AG around a rail merger. Bombardier denied the report.
ON BAYSTREET
The TSX Venture Exchange moved higher 0.31 points midday to 587.28
All but two of the 14 TSX subgroups were higher by noon, with energy soaring 2.1%, gold and industrials each stronger by 1.7%.
The two laggards were health-care, down 0.2%, and information technology, sliding 0.04%.
ON WALLSTREET
U.S. stocks traded mostly higher Wednesday as investors digested earnings and awaited the release of the Federal Reserve statement that could shed light on the timing of a rate hike.
The Dow Jones industrial average grew 104.72 points to 17,734.99, after yesterday’s gain of nearly 200 points, led by gains in Microsoft, Verizon and Boeing.
The S&P 500 gained 12.01 points to 2,105.26, with telecommunications leading eight sectors higher and utilities and information technology the only laggards.
The NASDAQ index moved up 13.90 points to 5,103.11
Tableau plunged nearly 19% despite reporting earnings that beat on both the top and bottom line. Shares of big data analytics firm Splunk declined in sympathy.
Earnings expected after the bell include Facebook, MetLife, Samsung Electronics, Marriott, Western Digital, and Whole Foods.
After the close Tuesday, Twitter reported earnings that beat on both the top and bottom line. However, user growth figures proved disappointing to investors, sending its shares sharply lower in after-hours trade. The stock fell more than 11% in morning trade Wednesday.
Gilead Sciences reported adjusted quarterly profit of $3.15 U.S. per share, outdistancing estimates of $2.71 U.S. Revenue also came in well above Street forecasts, with the drug maker benefiting from increased sales of hepatitis C treatments. Gilead also raised its full-year outlook.
Yelp missed on earnings per share but topped revenue expectations. The consumer review website gave a lower-than-expected forecast for current quarter revenue, amid increasing competition. Shares plunged more than 26% Wednesday.
Express Scripts topped earnings estimates and raised its full-years earnings forecast, but missed revenue expectations.
In economic news, pending home sales came in down 1.8% in June from May. Housing data so far has been mixed. Last week's new home sales report disappointed analysts while existing home sales jumped to an eight-and-a-half-year high.
Weekly mortgage applications barely moved for the second week in a row, rising just 0.8%, the Mortgage Bankers Association said.
The Federal Open Market Committee concludes its two-day meeting in the afternoon and is scheduled to release its statement at 2:00 p.m. No press conference is planned.
Prices for 10-year U.S. Treasuries lost ground, raising yields to 2.29% from Tuesday’s 2.25%. Treasury prices and yields move in opposite directions.
Oil prices spiked $1.27 a barrel to $49.25 U.S.
Gold prices eked up 10 cents to $1,096.30 U.S. an ounce.
