New Intraday High for TSX

Equity markets in Canada’s largest centre opened higher on Tuesday, as energy stocks gained tracking crude prices, as investors eyed the U.S. Federal Reserve’s meeting this week for cues on the tapering of its monetary policy.

The TSX Composite index rocketed 91.81 points to begin Tuesday at an intraday high of 20,249.46.

The Canadian dollar fell 0.26 cents to 82.09 cents U.S.

U.S. and Canadian officials are set to meet Tuesday to discuss how to eventually lift pandemic-related border restrictions between the two countries, but no immediate action is reportedly expected.

National Bank of Canada raised the target price on Bank of Montreal to $139 from $136. BMO shares gained 50 cents to $127.00.

CIBC raises target price on Finning International to $44.00 from $41.00. Finning gained $1.17, or 3.6%, to $33.76.

ATB Capital Markets cut the rating on Hexo Corp to “underperform” from “sector perform”. Hexo shares docked eight cents, or 1.1%, to $7.42.

On the economic slate, Canada Mortgage and Housing Corporation (CMHC) says the trend in housing starts was 280,779 units in May, up slightly from 278,462 units in April 2021.

CMHC says this trend measure is a six-month moving average of the monthly seasonally adjusted annual rates of housing starts.

ON BAYSTREET

The TSX Venture Exchange dipped 1.62 points to 976.17.

All but three of the 12 TSX subgroups were positive in the first hour, with energy gushing 1.5%, information technology up 1%, and consumer discretionary stocks progressing 0.8%.

The three laggards were materials off 1.1%, gold, sinking 0.4%, and health-care, stepping back 0.1%.

ON WALLSTREET

U.S. stocks fell slightly on Tuesday ahead of the Federal Reserve’s latest monetary policy meeting.

The Dow Jones Industrials gave back recent gains, losing 142.05 points to 34,251.70.

The S&P 500 fell 8.93 points to 4,246.22

The NASDAQ dropped 50.18 points to 14,123.96.

There were very few standout performers on Tuesday. Some reopening plays, such as Boeing, airlines and cruise lines, traded higher.

On the data front, the final demand index for producer prices advanced 6.6% for the 12 months ended in May, the largest increase since 12-month data were first calculated in November 2010.

On a monthly basis, the producer price index for final demand rose 0.8%, ahead of the Dow Jones estimate of 0.6%. Producer prices measure the prices paid to producers as opposed to prices on the consumer level.

Meanwhile, May’s retail sales data fell 1.3%, compared to an expectation of a 0.7% decline per economists polled by Dow Jones.

The Fed’s two-day policy meeting starts on Tuesday, and it’s a focal point for the markets this week. The central bank is not expected to take any action. However, commentary on interest rates, inflation and the economy could drive market moves.

Prices for 10-Year Treasurys skidded, raising yields to 1.51% from Monday’s 1.499%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.07 to $71.95 U.S. a barrel.

Gold prices lost 60 cents to $1,865.30 U.S. an ounce.

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