Markets in Canada’s largest centre rose on Tuesday as financial stocks kept the index in positive territory despite a hefty decline in Shopify Inc shares and weaker resource stocks.
The S&P/TSX Composite Index moved higher 22.64 points to start trading on Tuesday at 16,025.42, a new intraday high.
The Canadian dollar hesitated 0.38 cents to 77.55 cents U.S.
Shopify shares collapsed $10.95, or 7.8%, to start trading Tuesday at $129.27.
WestJet Airlines Ltd on Tuesday reported a third-quarter profit that beat analysts' estimates as the carrier flew a record number of passengers in the period.
WestJet shares dropped 13 cents to $26.97.
Hudson's Bay Co and RioCan REIT said the two companies are exploring the sale of HBC's flagship store in downtown Vancouver, stepping up efforts to extract value from the department store owner's substantial real estate holdings.
Bay shares advanced 15 cents, or 1.3%, to $11.33, while units of RioCan REIT gave back three cents to $24.39.
Innergex Renewable Energy said it will buy rival Alterra Power Corp in a deal valued at $1.1 billion, including debt, as the power producer looks to diversify its energy portfolio.
Innergex shares lost 71 cents, or 4.8%, to $14.02, while Alterra shares hiked $2.76, or 54.6%, to $7.82.
Canaccord Genuity raises the rating on Canopy Growth Corp. to hold from sell. Canopy shares spiked 64 cents, or 4.2%, to $15.86.
CIBC cut the rating on Element Fleet Management to neutral from outperform. Element shares dropped 23 cents, or 2.2%, to $10.09.
CIBC raised the target price on PrairieSky Royalty to $40.00 from $38.00. PrairieSky shares fell $1.19, or 3.4%, to $33.61.
On the economic beat, Statistics Canada reported Gross Domestic Product edged down 0.1% in August, after being essentially unchanged in July. The agency said declines in manufacturing and mining, quarrying and oil and gas extraction more than offset increases in most sectors.
The agency also reported its industrial product price index declined 0.3% in September, mainly due to lower prices for motorized and recreational vehicles and meat, fish, and dairy products.
The agency’s raw material price index edged down 0.1%, primarily due to lower prices for animals and animal products.
ON BAYSTREET
The TSX Venture Exchange erased 0.36 points to 783.80
Seven of the 12 TSX subgroups were positive to commence Tuesday’s business, with health-care soaring 1.9%, consumer discretionary issues progressing 0.8%, and industrials better by 0.4%.
The four laggards were weighed most by gold, sliding 0.8%, information technology, down 0.7%, and materials, off 0.4%. Energy stocks were unchanged.
ON WALLSTREET
Stocks traded mostly flat on Tuesday after gains in Mondelez and Kellogg were offset by a sharp loss in Under Armour shares.
The Dow Jones industrial average poked higher 11.76 points to start Tuesday at 23,360.50
The S&P 500 tacked on two pointts to 2,574.83, with consumer staples leading advancers.
Snack maker Mondelez jumped 6.2% amid improving North America and emerging market sales. Kellogg, meanwhile, rose nearly 7% after reporting better-than-expected earnings on strong sales in frozen foods. The two stocks were among the best performers in the S&P 500.
The NASDAQ added 16.46 points to 6,715.44.
Under Armour Class A shares tumbled 15.3%, however, offsetting Mondelez and Kellogg's gains. The sports apparel retailer posted mixed quarterly results — beating earnings estimates and missing revenue expectations — but also cut its full-year guidance.
The U.S. Federal Reserve is scheduled to announce its latest monetary policy decision on Wednesday.
However, most investors are not expecting any changes in policy. Market expectations for a Fed rate hike Wednesday are just 2%, according to experts. Rather, the Fed is expected to raise rates in December.
Speaking of the Fed, President Donald Trump is scheduled to announce his pick to be the next head of the central bank this week. Fed Governor Jerome Powell is likely to be named the next Fed chair.
Prices for the benchmark 10-year Treasury note were flat, keeping yields at Monday’s 2.37%
Oil prices drifted lower eight cents a barrel to $54.07 U.S.
Gold prices lost $7.70 an ounce to $1,270.00 U.S.
