Canadian stocks rose slightly on Tuesday for the first increase in four days as energy producers advanced with crude oil, and investors weighed results from Teck Resources Ltd. and Husky Energy Inc.
The S&P/TSX Composite Index was positive 13.45 points to close the session at 13,809.44, snapping its longest losing streak in three weeks.
The Canadian dollar strengthened 0.35 cents to 79.24 cents U.S.
Teck Resources added 4.2% after reporting a surprise first-quarter adjusted profit to lead raw-materials producers higher. Industrial stocks sank to offset some gains, led by a 5.1% decline – or $4.20 -- in Canadian National Railway Co.
Canadian National slid to $78.57, the lowest since March 4, after the country’s largest railroad operator cut its full-year profit target for the first time in eight years amid weaker-than-expected demand for commodities including coal and crude. Adjusted earnings for 2016 will be in line with 2015’s $4.44 a share, down from earlier forecasts of a mid to single-digit increase for the year, the Montreal-based company said in a statement Monday.
Crescent Point Energy Corp. boosted 44 cents, or 2.1%, to $21.56, and TransCanada Corp. rose 15 cents to $50.95, as energy stocks advanced. Oil closed at the highest level in more than five months in New York amid signs that a global surplus is gradually diminishing.
Bombardier Inc. rallied 19 cents, or 10.6%, headed for the highest close since July at $1.99, after the aircraft manufacturer signed a firm order with Chorus Aviation Inc. valued at $229 million for five aircraft with an option for five more.
Husky Energy sank $1.61, or 9.2%, the most since January, to $15.93, after the energy company raised $1.7 billion in relief for some of its Canadian pipelines from Li Ka-Shing, Hong Kong’s richest man, who controls the company.
ON BAYSTREET
The TSX Venture Exchange gained 5.53 points Tuesday to 657.44
Seven of the 13 TSX subgroups were positive on the day, with metals and mining powering ahead 2.3%, while gold stocks soared 1.6%, and materials were better by 1.5%.
The half-dozen laggards were weighed most by industrials, down 1.1%, utilities, sliding 0.7%, and real-estate, off 0.4%.
ON WALLSTREET
Stocks in New York concluded Tuesday, having traded in a range, with energy leading as oil climbed, ahead of major central bank meetings and earnings.
The Dow Jones Industrials gained 13.08 points to 17,990.32, with DuPont and Boeing contributing the most to gains. 3M and Procter & Gamble contributed the most to declines.
The S&P 500 stayed afloat 2.81 points to 2,090.60, with energy rising more than 1% to lead advancers.
The NASDAQ Composite Index, on the other hand, went south 7.48 points to 4,888.31, as declines in major techs such as Microsoft, Amazon.com and Alphabet weighed. Apple traded about 0.7% lower
Apple, Chipotle and Twitter are among those scheduled to report after the closing bell.
3M reported earnings that beat on both the top and bottom line, helped by increased profit margins. However, net sales fell 2.2% from the same period last year. The firm maintained its guidance for the year.
DuPont late Monday reported earnings that topped expectations and raised its forecast for 2016, citing a weakening of the U.S. dollar against most currencies.
Procter & Gamble reported better-than-expected earnings but revenue that missed, falling for a seventh-straight quarter. The firm now estimates a decline of 3% to 6% in earnings per share for the fiscal year, versus a fall of 3% to 8% previously.
Standard & Poor's on Tuesday lowered Exxon Mobil's credit rating to AA+ from AAA, saying low oil prices would make it difficult for the company to keep funding high dividends and share purchases for the next few years.
The U.S. Federal Open Market Committee is scheduled to kick off its two-day meeting Tuesday and release its statement on monetary policy Wednesday afternoon. No move on rates is expected, but investors will parse the statement for clues on the timing of the next hike.
In economic news, durable goods orders rose a less-than-expected 0.8% in March after a downwardly revised 3.1% decline in February.
Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, were unchanged after a downwardly revised 2.7% decline in the prior month. Reuters reported these so-called core capital goods orders were previously reported to have decreased 2.5% in February.
Shipments of core capital goods — used to calculate equipment spending in the gross domestic product report — rose 0.3% after slumping 1.8% in February
The S&P/Case-Shiller 20-City Composite's year-over-year gain was 5.4% in February, down from 5.7% the prior-year month.
The flash Markit services PMI rose to 52.1 in April from 51.3 last month. Consumer confidence for April was 94.2.
Prices for the 10-year Treasury sagged, lifting yields to 1.94% from Monday’s 1.91%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.40 a barrel to $44.04 U.S.
Gold prices added $4.74 to $1,242.71 U.S. an ounce.
