Stocks in Toronto climbed out of the red as morning became afternoon on Tuesday, thanks laregely to stronger earnings by airlines such Air Canada, and by e-commerce company Shopify Inc.
The S&P/TSX Composite Index surged 57.97 points to greet noon at 15,201.84
The Canadian dollar dipped 0.29 cents to 79.72 cents U.S.
The heavyweight energy group, which accounts for one-fifth of the index's weight, retreated as crude prices slipped from a two-month high, with major oil producer Suncor Energy down 1.8% at $39.95.
Large banks and miners also dragged the index lower despite Air Canada surging to an all-time high after its second-quarter profit handily beat analysts' estimates. The stock was last up 10% at $21.81.
Its smaller rival, WestJet Airlines, also topped expectations, and its shares gained 4.4% to $25.93.
Shopify, the Ottawa-based company that counts Procter & Gamble among its customers, jumped 11.7% to $128.35 after reporting a smaller-than-expected loss and a 75% jump in revenue.
Toronto-based Thomson Reuters rose 4.4% to $59.59 after the information services provider reported higher-than-expected second-quarter earnings, helped by demand for market data, and increased its full-year forecast for margins and adjusted earnings per share.
ON BAYSTREET
The TSX Venture Exchange dropped 0.75 points soon after Tuesday’s open to 769.61
All but two of the 12 TSX subgroups were ahead by noon, headed by information technology, up 2.7%, telecoms, better by 1.3%, and industrials, stronger by 0.9%
The two laggards were energy, sliding 0.8%, and consumer discretionary stocks, off 0.4%.
ON WALLSTREET
U.S. stocks traded uniformly higher on Tuesday, the first trading day of August, as the Dow Jones industrial average approached another milestone.
The Dow hiked 93.12 points to 21,984.24, another record high and to within sight of 22,000, with Goldman Sachs contributing the most gains.
The Dow is also coming off its strongest monthly performance since February, having risen 2.5%. Shares of Boeing contributed the lion’s share of the gains, adding more than 300 points to the index.
The S&P 500 grew 5.77 points to 2,476.07, with telecommunications and financials leading advancers.
The NASDAQ reacquired 11.62 points to 6,359.74
Earnings season is well underway with most companies topping expectations. In total, 72% of the S&P 500 companies that had reported as of Tuesday morning had beaten bottom-line estimates, while 69% had beaten on the top line
Earnings season continues Tuesday with tech giant Apple set to report after the close. Athletic apparel firm Under Armour reported better-than-expected quarterly results before the open, but the company's stock fell 8% on weaker-than-expected guidance.
Investors also turned their eyes to a slew of economic data on Tuesday. The IHS Markit manufacturing Purchasing Managers’ Index hit its highest level in four months in July, while U.S. construction spending declined 1.3% in June.
U.S. auto makers are also set to release monthly sales numbers throughout the day . Meantime, U.S. personal income for June remained unchanged, below an expected increase of 0.3%.
Prices for the benchmark 10-year Treasury note stayed higher, lowering yields to 2.27% from Monday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices gave back $1.61 to $48.56 U.S. a barrel
Gold prices gained $4.60 to $1,278.00 U.S. an ounce.
