Big Gains for TSX to Close Wednesday

Resource stocks carried Canada’s main stock index much higher Wednesday, with gains in tech stocks helping as well.

The TSX Composite hurtled upward 181.35 points to close Wednesday at 20,618.47

The Canadian dollar climbed $0.25 cents to 80.39 cents U.S.

The Canadian equity index has gained 17.5% so far this year on hopes of a steady economic recovery, but it has recently lost steam on concerns around higher inflation and a slowdown in global growth.

Gold led the parade of victors Wednesday, with Eldorado Gold storming up 95 cents, or 8.8%, to $11.79, while Kinross Gold gathered 35 cents, or 4.9%, to $7.49.

Among other resource issues, Capstone Mining picked up 24 cents, or 4.7%, to $5.40, while First Majestic Silver shot up 85 cents, or 5.9%, to $15.16.

In techs, HUT 8 Mining gained 79 cents, or 6.3%, to $13.40, while BlackBerry improved 55 cents, or 4.7%, to $12.20.

Energy listed lower, though, as Cenovus Energy toppled 31 cents, or 2.2%, to $13.95, while Vermilion Energy slid 30 cents, or 2.2%, to $13.24.

Among financials, Fairfax Financial Holdings gave back $13.59, or 2.6%, to $503.82, and Laurentian Bank was 52 cents, or 1.3%, to the bad, at $40.23.

The United States will lift restrictions at its land borders with Canada and Mexico for fully vaccinated foreign nationals in early November.

ON BAYSTREET

The TSX Venture Exchange popped 21.8 points, or 2.4%, to 918.59.

All but two of the 12 TSX subgroups were in the green, led by gold, up 2.9%, while materials advanced 2.1%, and information technology sprang up 2%.

The two laggards were energy, down 0.5%, and financials, sliding 0.1%.

ON WALLSTREET

The S&P 500 snapped a three-day losing streak Wednesday as investors digested third-quarter earnings and insights into when the Fed might taper its asset-purchase program.

The Dow Jones Industrials came off its losses of the morning, but remained 0.53 points, to 34,377.81.

The S&P 500 regrouped 13.15 points to 4,363.80.

The NASDAQ Composite triumphed 105.71 points to 14,527.09.

Third-quarter earnings season kicked off on Wednesday with JPMorgan Chase, which said that quarterly profit topped expectations following a boost from better-than-expected loan losses. Revenue for the largest U.S. bank by assets also came in higher than expected.

JPMorgan shares fell 2.6% following the report despite the strong earnings report. The stock is up more than 26% this year.

Delta Air Lines also reported financial results before the opening bell on Wednesday. The company posted higher-than-expected revenue and its first quarterly profit without counting federal aid since the start of the pandemic.

However, the airline said higher costs of fuel and other expenses will pressure its fourth-quarter bottom line. Shares of Delta shed 5.8%.

Apple shares dipped 0.4% after a Bloomberg News report that said it is likely to cut iPhone 13 production because of chip shortages.

Despite Apple’s retreat, technology stocks enjoyed a lift Wednesday from a lower U.S. 10-year Treasury note yield. Low interest rates can push growth stock prices higher because they lift the value of companies’ future earnings.

Investors await earnings reports from Bank of America, Morgan Stanley, Citigroup, Wells Fargo and Walgreens Boots Alliance on Thursday.

Minutes released Wednesday afternoon from the Federal Open Market Committee’s September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.

The consumer price index jumped 0.4% in September from the month prior and 5.4% year over year, the U.S. Labor Department reported Wednesday. Economists expected to see a month-to-month increase of 0.3% or annualized rate of 5.3%, according to Dow Jones.

Excluding energy and food, the core CPI rose 0.2% month over month and 4% over the last 12 months, against respective estimates for 0.3% and 4%.

Prices for 10-year Treasurys moved higher, lowering yields to 1.54% from Tuesday’s 1.57%. Treasury prices and yields move in opposite directions.

Oil prices faded six cents to $80.58 U.S. a barrel.

Gold prices jumped $33.80 to $1,793.10 U.S. an ounce.

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