Toronto stocks flexed their muscle midday Tuesday, with energy stocks gaining as oil prices hit a 2016 high.
The S&P/TSX Composite Index jumped out 156.63 points, or 1.2%, to greet noon at 13,579.39
The Canadian dollar muscled up 0.58 cents to 78.1 cents U.S.
Suncor Energy advanced 1.4% to $36.08, and Canadian Natural Resources was up 2.3% to $36.42.
The overall energy group climbed as oil prices gained on hopes that a meeting of producers would lead to steps to tackle a supply glut. The sector also benefited from a weak U.S. dollar and further signs of strong demand in China.
Canadian Pacific Railway Ltd also helped push the index higher, rising 2.5% to $184.42 after its CEO said cash once planned to acquire rival Norfolk Southern Corp could be used for a buyback, dividend, or combination of both.
In the financial sector, Royal Bank of Canada rose 0.5% to $75.31, Toronto-Dominion Bank advanced 0.4% to $54.65, and Bank of Nova Scotia added 0.6% to $61.92.
The materials group, which includes precious and base-metal miners and fertilizer companies, lost ground.
Barrick Gold declined 1.8% to $20.67, and Goldcorp fell 1.9% to $22.50, while diversified miner Teck Resources jumped 7.5% to $11.08.
Copper gained 1.3% to $4,724 U.S. a tonne.
ON BAYSTREET
The TSX Venture Exchange continued on the march, picking up 4.89 points to 624.68
Nine of the 13 TSX subgroups were higher by noon, as metals and mining popped 6.5%, energy 4.5%, and financials were better by
1.1%.
The four laggards were weighed most by information technology, sliding 0.5%, health-care, off 0.3%, and consumer staples, down 0.2%.
ON WALLSTREET
Stocks south of the border traded mostly higher Tuesday, with energy stocks leading as crude topped $41.00 a barrel, as investors awaited the bulk of earnings due over the next few weeks.
The Dow Jones Industrials spiked 125.57 points to 17,681.98, with 3M, Chevron and Boeing contributing the most to gains. Cisco proved the only decliner.
The S&P 500 was higher 13.33 points to 2,055.32. Energy traded more than 2.5% higher to lead S&P 500 advancers. Health-care was the second-best performer in late-morning trade.
The NASDAQ index climbed 17 points to 4,850.4, recovering from negative readings as Starbucks temporarily declined more than 3.5%.
Alcoa reported adjusted first-quarter earnings of seven cents U.S. a share, topping expectations of two cents a share. However, revenue of $4.95 billion U.S. missed expectations of over $5 billion and the aluminum producer also announced job cuts.
In economic news, March import prices showed a 0.2% rise from the prior month for the first time in nine months, although the gain was well below the expected 1% rise. Export prices were unchanged.
U.S. small business confidence fell to a fresh two-year low in March at 92.6, amid persistent worries about sales and profits, Reuters said, citing the National Federation of Independent Business.
The major economic data due in the next few days include retail sales and inflation reports.
Early Tuesday, the International Monetary Fund trimmed its global growth forecast to 3.2% for 2016.
Prices for the 10-year Treasury were lower, raising yields to 1.77% from Monday’s 1.72%. Treasury prices and yields move in opposite
directions.
Oil prices ballooned $1.45 a barrel to $41.81 U.S.
Gold prices skidded $3.23 to $1,254.65 U.S. an ounce.
