TSX Keeps Streak Alive

Equities in Toronto kept rolling Wednesday, with energy issues providing much of the push, while their brethren south of the line had trouble untracking themselves amid inflation news.

The TSX Composite Index finished higher 97.85 points to 26,524.16.

The Canadian dollar nudged higher 0.02 cents to 73.17 cents U.S.

In corporate news, WSP Global said on Wednesday that it would acquire British environmental and engineering consulting firm Ricardo for about 363.1 million pounds ($489.6 million U.S.) including debt.

WSP shares gained 42 cents to $272.30.

On TSX, the consumer discretionary sector rose as Dollarama jumped $17.23, or 9.8%, to $192.99, after the value retailer's quarterly results beat analysts' estimates.

Elsewhere, Vermilion led the energy charge among winning subgroups, taking 45 cents, or 4.3%, to $10.91, while Baytex Energy gathered 12 cents, or 4.5%, to $2.78.

In consumer discretionary stocks, Dollarama popped $17.20, or 9.8%, to $192.96, while Canadian Tire climbed $2.27, or 1.3%, to $179.55.

In tech issues, Celestica clicked higher $8.01, or 4.8%, to $174.13, while Shopify took on $5.69, or 3.8%, to $156.48.

Consumer staples let the side down, however, North West Company fading $2.30, or 4.2%, to $51.99, while Alimentation Couche-Tard dived $1.66, or 2.2%, to $72.66.

In real-estate plays, units of Crombie REIT dipped 16 cents, or 1.1%, to $14.70, Units of Dream Industrial REIT doffed 13 cents, or 1.1%, to $11.80.

Financials took it on the chin, with Intact falling $2.94. or 1%, to $304.16, while CIBC slid 82 cents to $92.87.

Late on Tuesday, U.S. and Chinese officials ended two days of trade negotiations in London with pledges to revive an agreement struck last month in Geneva and remove China's export restrictions on rare earths - a sticking point in that deal.

The new agreement will be taken back to the leaders of the two countries for approval.

In the economic arena, Statistics Canada said in April, the total value of building permits issued in Canada decreased by $829.6 million (-6.6%) to $11.7 billion.

ON BAYSTREET

The TSX Venture Exchange recovered 4.22 points to 721.52.

Seven of the 12 TSX subgroups gained ground, led by energy, darting ahead 2.4%, consumer discretionary issues, jumping 1.8%, information technology, up 1.5%.

The five laggards were weighed most by consumer staples, sagging 1.2%, industrials, down 0.2%, while utilities slid 0.1%.

ON WALLSTREET

Stocks dawdled on Wednesday, as the market’s recent run higher took a breather, as traders weighed a preliminary U.S.-China trade agreement and new inflation data.

The Dow Jones Industrials descended into negative territory 1.1 points to 42,865.77

The S&P 500 index tailed off 16.5 points to 6,022.31. The much broader index rose in six of the last seven trading days and was less than 2% below a record reached in February. At one point, the benchmark index was about 20% below a record.

The NASDAQ Composite declined 99.11 points to 19,615.88.

Shares of Tesla lost $1.08 to $325.00 after three straight winning days, after CEO Elon Musk said he regrets some of the social media posts he made regarding Trump.

Musk also announced on Tuesday that Tesla robotaxi rides in Austin, Texas, are ‘tentatively’ set to start on June 22. Separately, quantum computing stocks jumped after Nvidia CEO Jensen Huang said the space is reaching an inflection point. Nvidia shares handed back $1.10 to $142.85.

The consumer price index rose 0.1% in May from April, less than the 0.2% estimate from economists polled by Dow Jones. Core CPI, which strips out volatile food and energy prices, also increased 0.1%, less than expected.

U.S. and Chinese officials reached a consensus after a round of talks in London. As part of the framework, China would approve the exports of rare earth minerals while the U.S. would roll back restrictions on the sale of advanced technology to China.

President Donald Trump said in a Truth Social post on Wednesday that the deal with China is “done, subject to final approval with President Xi and me”. He added that “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%.”

As part of the trade agreement, he said that magnets and “any necessary rare earths” will be supplied up front by China and the U.S. will allow Chinese students to attend U.S. colleges and universities. The prospect of opening up China to American trade is “a great WIN for both countries,” Trump said in the post.

Prices for the 10-year Treasury gained, lowering yields to 4.42% from Tuesday’s 4.47%. Treasury prices and yields move in opposite directions.

Oil prices added $2.85 to $67.83 U.S. a barrel.

Gold prices brightened $24.70 to $3,353.40 U.S. an ounce.