TSX Springs on Back of Tech, Health
Equities in Toronto strengthened Tuesday, lifted mostly health and tech shares, on the eve of the Bank of Canada decision on interest rates
The TSX Composite Index jumped 135.32 points to conclude Tuesday at 27,540.74.
The Canadian dollar dipped 0.22 cents at 72.59 cents U.S.
Tech stocks led the parade, with Celestica shooting up $38.93, while Quarterhill Inc. rocketed four cents, or 3.2%, to $1.31.
Among health plays, Chartwell Retirement Residence grabbed 57 cents, or 3.3%, to $17.82, while Sienna Senior Living.
In real-estate, Colliers International popped $11.91, or 6.2%, to $203.71, while units of Crombie REIT surged 33 cents, or 2.3%, to $14.67.
Telecoms weighed t hings down, as Cogeco moved backward $1.65, or 2.5%, to $64.05, while Rogers backpedaled 28 cents to $46.34.
In the financial world, CIBC let go of $1.93, or 1.9%, to $99.59, while EQB fell $1.95, or 1.9%, to $99.57.
A much-anticipated European Union-U.S. trade agreement was announced on Sunday. However, the initial relief over Europe's 15% levy on exports to the U.S. quickly soured when set against the 1% to 2% that stood before U.S. President Donald Trump took office.
ON BAYSTREET
The TSX Venture Exchange dropped 11.85 points, or 1.5%, to 777.58.
All but three of the 12 TSX subgroups were higher Tuesday, with information technology and health-care each soaring 1.8%, while real-estate charged ahead 1.5%.
The three laggards were telecoms, off 0.5%, consumer discretionary stocks, down 0.4%, and financials, off 0.3%.
ON WALLSTREET
The S&P 500 closed lower on Tuesday as progress on trade talks with Beijing stalled and traders braced for the Federal Reserve’s rate decision.
The Dow Jones Industrial Average crumbled 204.57 points to 44,632.99.
The much broader index retreated 18.91 points to 6,370.86.
The NASDAQ sank 80.29 points to 21,098.29.
Investors trimmed some bets on risk assets after stocks came roaring back in recent months from their April lows, helped by progress in trade talks between the U.S., Japan and the European Union.
Talks with China have been less certain, with U.S. negotiators ending negotiations with their Beijing counterparts on Tuesday, while a potential extension of a pause on higher China tariffs remained up in the air.
Negotiators also said that such a reprieve wouldn’t be final until President Donald Trump signs off.
Traders evaluated some mixed results on Tuesday. Shares of Boeing were lower even after a solid earnings print as the company delivered the most airplanes since 2018.
Procter & Gamble stock inched lower despite a better-than-expected full-year revenue forecast and the naming of an insider as CEO.
Other corporate results have missed the mark, with shipping giant and consumer bellwether UPS posting an earnings shortfall and not issuing guidance. Whirlpool missed second-quarter analyst estimates and slashed its dividend.
This week is a key stretch for corporate earnings, with “Magnificent Seven” names Meta Platforms, Microsoft, Apple and Amazon all set to report results on Wednesday and Thursday. As it stands, 199 S&P 500 companies have reported their quarterly results, and nearly 82% have beaten expectations on earnings.
The looming Federal Reserve interest rate decision on Wednesday also weighed on equities. The central bank is largely expected to keep its benchmark unchanged at a range of 4.25% to 4.5%.
Prices for the 10-year treasury forged ahead, lowering yields to 4.32% from Monday’s 4.41%. Treasury prices and yields move in opposite directions.
Oil prices jumped $2.64 to $69.35 U.S. a barrel.
Gold prices recovered $13.40 to $3,323.40 U.S. an ounce.
