Stocks in Toronto climbed after Wednesday’s opening bell, mostly on the strength of base metals, as a flood of earnings rolled in.
The S&P/TSX composite index began the day up 111.35 points to 14,602.40
The Canadian dollar gained 0.11 cents to 75.92 cents U.S.
National Bank Financial cut the target price on 5N Plus Inc to $2.25 from $2.75 as the company’s second quarter results were again impacted by erosion of commodity prices, down by more than 40% from Jan. 1.
5N shares picked up two cents to $1.08.
National Bank Financial raised the target price on Saputo Inc to $35.00 from $34.50 as management expressed optimism regarding ongoing efficiency initiatives and the company’s outlook will be supported by acquisition opportunities and capital return to shareholders.
Saputo shares acquired five cents to $31.49.
Among those reporting earnings this morning is Agrium Inc, expecting Q2 earnings of $4.77 per share. The fertilizer company took on 48 cents to $134.82.
Barrick Gold Corp is expecting Q2 earnings of six cents per share, while Bellatrix Exploration looks forward to a Q2 loss of eight cents per share.
Barrick shares ducked back six cents to $8.91, while Bellatrix removed four cents to $2.52.
On the economic calendar, Statistics Canada says exports increased 6.3% in June while imports declined 0.6%. This means Canada's merchandise trade deficit with the world narrowed from $3.4 billion in May to $476 million in June.
ON BAYSTREET
The TSX Venture recovered 2.61 points to 592.49
All but one of the 14 TSX subgroups were gainers in the first hour, with global base metals up 2.9%, information technology ahead 1.7%, and energy gaining 1.6%.
The lone laggard was in real estate, flatlining at the opening.
ON WALLSTREET
U.S. stocks traded higher on Wednesday as investors digested earnings and data amid mixed comments from Fed speakers on the timing of a rate hike.
The Dow Jones industrial average leaped 100.19 points to 17,650.88
The S&P 500 hiked 18.04 points to 2,111.36
The NASDAQ index spiked 59.82 points to 5,165.37
Apple turned positive to gain about 1.5% after initially falling 2% In the last two days, the stock has plunged into correction territory.
On Wednesday, Bank of America/Merrill Lynch cut its rating on the stock to "neutral" from "buy," saying iPhone growth is decelerating and that Apple Watch, Apple Pay, and Apple Music will take time to ramp up.
Netflix traded about 3.5% higher after the company late Tuesday confirmed plans to expand into Asia and an investment firm put a mega-bullish price target on the stock.
Shares of Disney plunged about 6.5% after missing on revenue in its earnings report after the close Tuesday. The stock was the only blue chip decliner, weighing about 60 points on the index. Without Disney's losses, the Dow should have had twice its gains in morning trade.
Disney had a solid run up to its earnings report, with 8% gains year-to-date.
In economic news, the ADP report came in at 185,000, below expectations for 215,000 private-sector payrolls.
Earlier, futures fluctuated ahead of the ADP payroll data, which is not seen as an exact preview for Friday's jobs report but it can give directional hints, and the market watches it for any big surprises.
Meanwhile, economists forecast 223,000 non-farm payrolls in the government's employment report Friday, and that is one of the final key pieces of data the Fed will review before it September meeting.
The July trade report posted a deficit of $43.84 billion U.S.
Prices for 10-year U.S. Treasuries sagged, boosting yields to 2.28% from Tuesday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices added 38 cents a barrel to $46.12 U.S.
Gold prices docked $8.70 to $1,082 U.S. an ounce.
