Equities in Canada’s biggest centre gathered steam by the close of business Tuesday, as energy stocks pushed higher with a jump in oil prices, while financial stocks pulled back after a sharp rally following the shock U.S. presidential election victory of Donald Trump.
The S&P/TSX Composite leaped 157.83 points, or 1.1%, to close Tuesday at 14,756.28
The Canadian dollar regained 0.62 cents, to 74.36 cents U.S.
Gold stocks proved strongest of all, as Barrick Gold hiked $1.06, or 5.3%, to $20.92, while Iamgold muscled up 25 cents, or 4.9%, to $5.31.
The most influential gainers on the Canadian index included its biggest energy producers, with Suncor Energy rising $1.56, or 3.9%, to $41.34 and Canadian Natural Resources advancing 96 cents, or 2.3%, to $42.74. Encana added 75 cents, or 5.3%, to $14.97.
The energy group climbed as oil prices bounced back from multi-month lows on expectations that the Organization of the Petroleum Exporting Countries will agree later this month to cut production to reduce a crude glut.
The financials group slipped as a rally in global bond yields paused, with Toronto-Dominion Bank down 52 cents to $62.40, and Manulife Financial declined 10 cents to $23.06 after four days of sharp gains took the stock to its highest since August 2015.
Shares in Valeant Pharmaceuticals International declined 76 cents, or 3.2% to $24.55. Its chief executive said it has received offers for some core assets.
On the economic beat, the Canadian Real Estate Association said national home sales rose 2.4% from September to October. Actual (not seasonally-adjusted) activity was up 2.0% year-over-year in October 2016.
ON BAYSTREET
The TSX Venture Exchange took on 17.52 points, or 2.4%, to 747.16
All but two of the 12 TSX subgroups were positive by the final bell, as gold shone brighter 3.6%, energy zoomed 3.5% higher, and materials clicked 2.7% higher
Financials were in the red 0.3%, and real-estate retreated 0.04%.
ON WALLSTREET
Stocks south of the border closed higher on Tuesday, lifted by a sharp rally in energy stocks, while the technology sector rebounded after a post-election selloff.
The Dow Jones Industrials surged 54.37 points on top of Monday’s all-time high, to 18,923.06, with Verizon leading advancers and Home Depot the top decliner. It was the seventh straight rise for the Dow 30.
The S&P 500 gained 16.19 points at 2,180.39, with energy leading seven sectors higher and real estate the biggest laggard.
The NASDAQ composite index strengthened 57.22 points, or 1.1%, to 5,275.62, as Apple and the so-called FANG stocks (Facebook, Amazon, Netflix and Google's parent firm Alphabet) all rose. Technology stocks have taken a hit since the U.S. election, falling more than 2% entering Tuesday.
In economic news, retail sales rose 0.8% in October while import prices 0.5%, both beating expectations. The November read on the New York manufacturing index also came in above estimates.
Other data released Tuesday included business inventories for September, which came in line with expectations.
Amid these data reports, Goldman Sachs raised its third-quarter GDP estimates 3.2%, and its fourth-quarter estimates to 2.6%.
Treasury prices for the 10-year note lost ground, returning yields to Monday’s 2.24%. Treasury prices and yields move in opposite directions.
Oil prices sprang higher $2.55 to $45.87 U.S. a barrel
Gold prices charged higher $5.80 to $1,227.50 U.S. an ounce.
