Stocks resumed their skyward journey Tuesday on both sides of the border, as Canadian traders caught much of the good vibes from their American cousins.
The S&P/TSX Composite righted the ship in time to move up 60.51 points and finish Tuesday at 15,100.38, following Monday’s 175-point hike, which put the index at 17-month highs.
The Canadian dollar sank 0.15 cents at 74.38 cents U.S.
The most influential gainers included Teck Resources, which rose $2.33, or 7.3% to $34.33, and First Quantum Minerals, which jumped 93 cents, or 6.3%, to $15.73.
Prices for copper, which both companies mine, rallied 2% to a one-week high, powered by signs of tighter supply and increased Chinese demand and as investors broadly bet on rising U.S. inflation.
Barrick Gold Corp caught up to breakeven to $20.65, after spending much of the day struggling, and Potash Corp fell 42 cents, or 1.7% to $24.07.
The financials group gained, with Royal Bank of Canada up 30 cents at $89.25 and Toronto-Dominion Bank adding 27 cents to $63.59.
Fairfax Financial Holdings Ltd gained $22.83, or 3.8%, to $627.85. The firm's Chief Executive Prem Watsa said earlier this month it had reduced its famously bearish outlook in light of Donald Trump's victory.
The energy group retreated, even as oil prices hit their highest level this month as a growing market consensus emerged that the Organization of the Petroleum Exporting Countries would overcome internal disputes and skepticism to strike a deal materially reducing crude output.
Industrials rose as shares in Bombardier advanced four cents, or 2.1% to $1.91. The plane and train maker said it won an eight-year, $331-million contract from Montreal's regional transport authority.
Health-care took it on the chin, with Valeant Pharmaceuticals down 66 cents, or 2.7%, to $23.99, and Canopy Growth Corporation sliding $2.23, or 21.3%, to $8.25.
On the economic slate, Statistics Canada reported that retail trade rose 0.6% to $44.4 billion in September on the strength of higher sales at motor vehicle and parts dealers. The hike broke a four-month string of stagnant readings.
Moreover, Canadians on employment insurance totaled 571,800 in September, up 3,300 or 0.6% from August. On a year-over-year basis, the number of beneficiaries was up 27,800, or 5.1%.
ON BAYSTREET
The TSX Venture Exchange floundered 15.3 points, however, or 2.1%, to 732.63
All but three of the 12 TSX subgroups were higher Tuesday as materials bolted higher 1.2%, industrials were up 1%, and consumer discretionary stocks were 0.8% better.
The three laggards were health-care, less well by 1.8%, energy, down 0.3%, and telecoms, falling 0.1%.
ON WALLSTREET
U.S. equities closed higher on Tuesday, hitting new all-time highs, as investors digested housing data and kept an eye on President-elect Donald Trump's policy agenda.
The Dow Jones Industrials gained 67.18 points to close at 19,023.87, closing above 19,000 for the first time ever, with Home Depot gaining the most.
The S&P 500 gained 4.76 points to 2,202.94, with telecommunications leading nine sectors higher and health-care the biggest laggard.
The NASDAQ composite index added 17.49 points to 5,378.13, also trading at fresh record high.
In corporate news, medical equipment maker Medtronic reported mixed quarterly results. Medtronic also cut its full-year forecast, as customers delay purchases ahead of new products entering the marketplace. Meanwhile, KKR is buying Japanese auto parts maker Calsonic from Nissan Motors and its partners for $4.5 billion U.S.
Market expectations for a Federal Reserve interest rate hike in December were now 90%.
On Monday, Trump expanded on his policy agenda, which includes withdrawing from the Trans-Pacific Partnership (TPP). The trade pact was a centrepiece of the Obama administration's "pivot" towards Asia and was meant to solidify the U.S.'s presence in what is considered by many American companies as the most economically dynamic part in the world.
In economic news, existing home sales rose to their highest annual rate since February 2007. There are no other major data due Tuesday, but Wednesday will see several reports released, as the U.S. will celebrate the Thanksgiving holiday on Thursday.
Treasury prices for the 10-year note dropped a bit by the close, raising yields back to Monday’s 2.32%. Treasury prices and yields move in opposite directions.
Oil prices shed 36 cents to $47.88 U.S. a barrel
Gold prices added two dollars to $1,211.80 U.S. an ounce.
