TSX Comes Back from Monday’s Heavy Losses - InvestingChannel

TSX Comes Back from Monday’s Heavy Losses

Canada’s main stock index rose on Tuesday as global risk sentiment improved after reports of Moscow’s withdrawal of some troops near Ukraine calmed fears of a potential Russian invasion.

The S&P/TSX Composite zoomed 105.94 points to pause for lunch Tuesday at 21,458.45.

The Canadian dollar hesitated 0.10 cents at 78.46 cents U.S.

Restaurant Brands International gained $2.69, or 3.7%, to $75.38, after the Burger King-parent beat estimates for quarterly revenue and profit.

Meanwhile, TC Energy shares gained 0.3% despite the oil producer reporting a fall in quarterly profit as it took a $60-million hit from charges related to its scrapped Keystone XL oil pipeline. TC fell six cents to $66.57.

Prime Minister Justin Trudeau on Monday activated rarely used emergency powers in an effort to end protests that have shut some U.S. border crossings and paralyzed parts of the capital.

On the economic slate, Canada Mortgage and Housing told us housing starts registered at 254,133 units in January, down from 261,352 units in December.

Elsewhere, the Canadian Real Estate Association reported home sales edged up 1% between December 2021 and January 2022. Actual (not seasonally-adjusted) monthly activity came in 10.7% below the record January in 2021.

ON BAYSTREET

The TSX Venture Exchange regained 8.53 points to 869.94.

All but three of the 12 TSX subgroups gained ground midday, with health-care springing 2.9%, consumer discretionary stocks up 2.1%, and industrials booming 1.7%.

The three laggards were gold, down 1.9%, energy, off 1.3%, and materials, lower 0.6%.

ON WALLSTREET

The Dow Jones Industrial Average rose for the first day in four on Tuesday after Russia appeared to be backing away from an immediate invasion of Ukraine, cooling geopolitical tensions that have knocked the stock market down the last three days.

The 30-stock index popped 411.4 points, or 1.2%, to 34,977.57, helped by a 3% jump in Boeing.

The S&P 500 regained 59.59 points, or 1.4 % to 4,461.26.

The NASDAQ surged 270.44 points, or 2%, to 14,061.36.

The Russian Defense Ministry said it had begun returning some troops to deployment bases after training exercises near the Ukrainian border.

Airline and cruise stocks led the gainers while energy companies were the biggest losers as oil prices fell. American Airlines rose 5% and Carnival Corp. added more than 4.5%. Meanwhile, Exxon Mobile fell 2% and ConocoPhillips lost 3%.

Certain technology names also charged higher. Netflix added 2% and Tesla rose more than 3.5%.

The producer price index, which measures final-demand goods and services, increased 1% for the month, against the Dow Jones estimate for 0.5%. Over the past 12 months the gauge rose an unadjusted 9.7%. Excluding food, energy and trade services, co-called core PPI increased 0.9% for the month, topping the 0.4% estimate.

Prices for 10-year Treasurys fell, raising yields to 2.04%, from Monday’s 1.99%. Treasury prices and yields move in opposite directions.

Oil prices fell $3.63 to $91.82 U.S. a barrel.

Gold prices sank $15.70 to $1,853.70 U.S. an ounce.

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