Equities in Canada’s biggest market proved positive in the first hour of trade Wednesday as energy and financial stocks rose, and convenience store operator Alimentation Couche Tard gained after reporting better-than-expected quarterly earnings.
The S&P/TSX Composite Index flew into the green, gaining 65.6 points to kick off Wednesday at 15,155.75
The Canadian dollar dropped 0.27 cents to 80.58 cents U.S.
Canada, Mexico and the United States made progress Tuesday in talks to update the NAFTA trade pact, a relief after repeated criticism by U.S. President Donald Trump, although the round did not delve deeply into the toughest issues.
Couche-Tard shares galloped $1.33, or 2.2%, to $60.79.
Hudson's Bay Co reported on Tuesday a steeper-than-forecast quarterly loss but retail sales slightly topped expectations as new store openings and a favorable foreign exchange impact offset fewer shoppers and more sales promotions.
Bay shares gave back two cents to $11.25.
Canaccord Genuity raised the target price on IAMGOLD to $10.00 from $9.75. Shares in IAMGOLD rallied seven cents to $8.64.
RBC raised the price target on Transcontinental Inc. to $26.00 from $25.00. Transcontinental shares gained 25 cents, or 1%, to $24.36.
Economically speaking, the Bank of Canada announced it was raising its target for the overnight rate to 1%. The Bank Rate is correspondingly 1.25% and the deposit rate is 0.75%
Elsewhere, Statistics Canada reported Canada's merchandise trade deficit totaled $3.0 billion in July, narrowing from a $3.8-billion deficit in June. Imports fell 6.0% while exports decreased 4.9%.
ON BAYSTREET
The TSX Venture Exchange gained 1.82 points soon after Wednesday’s opening to 781.51
All but two of the 12 TSX subgroups were higher to begin Wednesday’s session, as energy proved 1.2% more energetic, while consumer staples and industrials each pulled 0.6%.
The two laggards were gold, down 0.3%, and information technology, sliding 0.1%.
ON WALLSTREET
U.S. stocks opened higher on Wednesday as they tried to rebound from the biggest selloff since mid-August.
The Dow Jones Industrials regained 89.31 points, to 21,842.62, with Home Depot and Goldman Sachs contributing the most to the gains.
The S&P 500 recovered 7.69 points to 2,465.54, with energy, information technology and financials leading all sectors higher.
The NASDAQ recouped 13.57 points to 6,389.15
Large-cap tech stocks led the way higher along with financials. Shares of Facebook, Apple, and Netflix all rose in early trade. On Tuesday, all of those stocks closed lower.
Financials also attempted a rebound after posting their worst session since May 17. Shares of Goldman Sachs advanced 0.7%, while Bank of America's stock rose 0.3%.
However, shares of United Continental Holdings and Newell Brands were among the worst performers in the S&P 500. United cut its unit revenue and pre-tax margin guidance for this quarter, citing Hurricane Harvey. Newell Brands, meanwhile, issued a statement saying "nearly all" of its resin suppliers in Louisiana and Texas are shut down because of Harvey.
The rebound came a day after the Dow and the S&P posted their worst sessions since Aug. 17. Stocks pulled back sharply amid rising tension between North Korea and the West.
In economic news, international trade numbers showed the U.S. trade deficit for July came in at $43.7 billion, below the expected $44.7 billion. Other data set for release include the Purchasing Managers Index services index and the Institute for Supply Management non-manufacturing report.
Another big major data point is set to be released at 2 p.m. ET, which is the latest publication of the Federal Reserve's Beige Book.
Prices for the benchmark 10-year Treasury note sagged, raising yields to 2.08% from Tuesday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices marched ahead 48 cents to $49.14.
Gold prices dropped $1.50 to $1,343.00 U.S. an ounce.
