TSX Back in Green - InvestingChannel

TSX Back in Green

Stocks in Toronto reversed early losses on Wednesday and moved into positive territory by noon EDT, largely on the strength of cannabis and tech issues.

The TSX reversed its fortunes and gained 46.48 points to 18,984.19.

The Canadian dollar were unchanged from Tuesday at 77.69 cents U.S.

Canopy Growth grew 63 cents, or 18.8%, to $3.98, while Tilray surged 55 cents, or 12.1%, to $5.11.

In techs, HUT 8 Mining took on 22 cents, or 8.5%, to $2.81, while the beleaguered Shopify grabbed $3.43, or 7.8%, to $47.66.

Golds dragged things down, though, as Alamos Gold slid 19 cents, or 2%, to $9.40, while Equinox Gold ditched 12 cents, or 2.2%, to $5.29.

In other resource stocks, First Quantum Minerals dropped 84 cents, or 3.8%, to $21.03, while Wheaton Precious Metals lost $1.28, or 2.9%, to $42.48.

Investors have been looking for clues on the central bank’s monetary policy path after it unveiled a full-percentage-point interest rate hike last week, becoming the first G7 country to opt for such an aggressive hike in this economic cycle.

Traders see a 92% chance of a 50-basis-point hike in September.

On the economic front, the consumer price index rose 8.1% on a year-over-year basis in June, up from a 7.7% gain in May. On a seasonally adjusted monthly basis, the CPI increased 0.6% in June.

Also, Statistics Canada says its Industrial Product Price Index declined by 1.1% month-over-month in June and by 14.3% compared with June 2021.

The Raw Materials Price Index edged down 0.1% on a monthly basis in June and increased 32.4% year over year.

ON BAYSTREET

The TSX Venture Exchange edged up 2.55 points to 609.99

All but three of the 12 TSX subgroups were positive midday, with health-care 6% higher, information technology climbing 3.8%, and consumer discretionary stocks up 0.5%.

The three laggards proved to be gold, down 1.7%, materials, worse off by 0.8%, and utilities falling 0.2%.

ON WALLSTREET

U.S. stocks rose Wednesday, extending gains from the prior session, as traders weighed the latest corporate earnings for signs that profits will stay high enough to boost the market. Netflix shares jumped on better-than-expected second quarter results.

The Dow Jones Industrials recovered 60.41 points to 31,877.46.

The S&P 500 regained 28.18 points to 3,964.87.

The NASDAQ Composite jumped 193.03 points, or 1.7%, to great noon at 11,906.17.

Those gains follow Tuesday’s rally, when the Dow surged more than 700 points, as Wall Street bet that markets may have finally found a bottom after pricing in a dire economic outcome from the Fed’s campaign to raise interest rates and fight inflation.

Investors pointed to a Bank of America survey that suggested deteriorating sentiment could potentially set up a buying opportunity in the market. Meanwhile, the U.S. dollar, which recently surged to a 20-year high against the euro, softened, giving the rally more steam.

Netflix jumped 3% after saying it lost 970,000 subscribers in the second quarter, less than the two million it had previously projected. The streaming giant’s earnings per share also came in above analyst expectations.

Baker Hughes plunged 10% after disappointing second quarter earnings. The oilfield services company reported earnings of 11 cents per share, which is half what analysts were expecting.

Biogen declined more than 3% despite posting a beat in its latest quarterly report. The company warned that its revenue could take a hit from growing generic competition.

About 12% of S&P 500 companies have reported earnings so far this quarter. Of those companies, 68% have beaten analyst expectations.

Tesla and United Airlines are slated to post their latest quarterly results after the close.

Investors had been awaiting this earnings season as they search for clues on how companies are faring with inflation at levels not seen in 40 years.

On the economic front, a report from the Mortgage Bankers Association pointed to more pain for U.S. consumers as they deal with higher prices and interest rates. Mortgage demand declined more than 6% last week compared with the prior week, dropping to its lowest level in 22 years.

Treasury prices fell once again, lifting yields back to Tuesday’s 3.02%. Treasury prices and yields move in opposite directions.

Oil prices slumped 97 cents to $103.25 U.S. a barrel.

Gold prices faltered $5.60 to $1,706.00 U.S. an ounce.

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