Stocks Finish Strong Tuesday

Stocks got a short week off to a rousing start Tuesday, as energy and health-care stocks rumbled ahead.

The S&P/TSX Composite Index screamed higher 198.83 points, or 1.2%, to 16,368.03.

The Canadian dollar surged 0.4 cents to 75.05 cents U.S.

Markets in Canada were shuttered for Civic Holiday.

In the oil patch, Crescent Point Energy surged 15 cents, or 7.3%, to $2.22, while ARC Resources jumped 41 cents, or 7.2%, to $6.10.

In the health-care sector, Cronos Group added 71 cents, or 8.1%, to $9.49, while Canopy Growth jumped $1.35, or 5.5%, to $25.81.

In other resource stocks, Hudbay Minerals gained 21 cents, or 5%, to $4.42, while Pretium Resources increased 68 cents, or 5.4%, to $13.38.

Industrials went backward, with Toromont Industrials fading $1.62, or 2.2%, to $71.40, while Mullen Group docked 23 cents, or 2.4%, to $9.37.

The consumer staples sector got punished, with Alimentation Couche-Tard down 49 cents, or 1.1%, to $46.06, while Primo Water doffed 20 cents, or 1.1%, to $18.81.

Financials also fell shy of Friday’s close, with iA Financial Corporation sliding $1.23, or 2.6%, to $45.80, while Canadian Western Bank slumped 69 cents, or 3%, to $22.11.

On the economic calendar, the Markit Canada Manufacturing Purchasing Managers Index climbed to 52.9 in July, up from 47.8 in June, registering registered above the 50.0 no-change threshold for the first time in five months.

Markit says the latest PMI reading was the highest since January 2019 and signaled a partial rebound in business conditions from the low point seen during April (index at 33.0).

ON BAYSTREET

The TSX Venture Exchange raced 20.33 points, or 2.8%, to close Tuesday at 741.57.

Seven of the 12 TSX subgroups were in the green on the day, with energy gushing 3.7%, health-care improving 3.2%, and materials stronger 2.5%.

The five laggards were weighed most by industrials, backtracking 0.8%, while consumer staples eased 0.2%, and financials were off 0.1%.

ON WALLSTREET

Stocks rose across the board on Tuesday, building on the previous session’s strong gains, as lawmakers tried to make inroads on a new coronavirus stimulus package.

The Dow Jones Industrials grew 164.07 points to 26,828.47.

The S&P 500 gained 11.9 points to 3,306.51. Both the Dow and S&P 500 posted three-day winning streaks.

The NASDAQ recovered 38.37 points to 10,941.17, notching its fifth straight day of gains and a record close. The tech-heavy index is up more than 21% in 2020.

Big Tech, which has led the major market indexes for much of the past week, traded mixed on Tuesday. Apple, one of the best performers in the Dow on Tuesday, finished the session up 0.6%. Netflix, meanwhile, gained 2.2%. Losses from the so-called FAANG group came from Facebook, which fell 0.85%, and Alphabet, which slipped 0.6%.

The upswing on Tuesday came after House Speaker Nancy Pelosi said that she, Senate Minority Leader Chuck Schumer and White House chief of staff Mark Meadows held “productive” discussions on Monday, despite a handful of issues still outstanding.

Both sides have indicated they agree on another $1,200 stimulus check, but remain deadlocked on additional unemployment assistance.

Prices for the 10-Year Treasury gained, lowering yields to 0.51% from Monday’s 0.54%. Treasury prices and yields move in opposite directions.

Oil prices regained 57 cents to $41.58 U.S. a barrel.

Gold prices shone $47.00 brighter to $2,033.30 U.S. an ounce.