Stocks in Canada’s largest market managed to hold onto early gains Tuesday after fresh evidence of easing U.S. inflation raised expectations that the Federal Reserve will slow its pace of interest rate hikes.
The TSX Composite was still solid 72.97 points to conclude Tuesday at 19.994.78.
The Canadian dollar leaped 0.30 cents to 75.34 cents U.S.
Techs proved the kings of the gainers, with Coveo Solutions soaring 40 cents, or 6.5%, to $6.56, while Shopify took on $2.33, or 4.6%, to $53.45.
Energy rumbled ahead, too, with Paramount Resources ahead $1.24, or 4%, to $32.18, while Vermilion Energy advanced 96 cents, or 3.6%, to $27.68.
In consumer discretionary stocks, Linamar brightened $2.23, or 3.6%, to $64.05, while Canadian Tire popped $4.73, or 3.2%, to $151.60.
Gold faded, as Torex Gold Resources slid 44 cents, or 3.7%, to $11.31, while NovaGold dropped 14 cents, or 1.9%, to $7.28.
Among communications stocks, Corus Entertainment lost nine cents, or 3.9%, to $2.21, while Rogers docked 95 cents, or 1.6%, to $57.48.
Utilities suffered, too, as Northland Power subtracted $1.51, or 3.9%, to$37.67, while Algonquin Power doffed 32 cents, or 3%, to $10.29.
On the economic slate, motor vehicle sales checked in at 130,421 units, down 4.5% from the 136,584 units sold in September 2021, and the lowest for September sales since 2009.
September’s wholesale trade rose 0.1% to $81.8 billion in September. The largest increases came from personal and household goods and food, beverage and tobacco subsectors
The Canadian Real Estate Association reported national home sales were up 1.3% on a month-over-month basis in October. Actual (not seasonally adjusted) monthly activity came in 36% below October 2021. CREA also said the number of newly listed properties edged up 2.2% month-over-month.
Lastly, Statistics Canada reported manufacturing sales were unchanged in September as higher sales in the aerospace product and parts and primary metal industries were largely offset by lower sales in the petroleum and coal and food industries.
ON BAYSTREET
The TSX Venture Exchange dropped 8,22 points, or 1.4%, to 593.53.
Seven of the 12 TSX subgroups gained ground, led by information technology, up 3.1%, health-care, ahead 2.2%, and consumer discretionary stocks, better by 1.5%
The five laggards were weighed most by gold, down 1%, communications, sliding 0.8%, and utilities, off 0.7%.
ON WALLSTREET
Stocks resumed their inflation-driven rally on Tuesday after another report signaled that price increases could be slowing.
The Dow Jones Industrials gained 56.22 points to adjourn Tuesday at 33,592.22
The S&P 500 added 34.48 points to 3,991.73
The NASDAQ strengthened 162.19 points, or 1.5%, to 11,358.14.
Stocks ended higher for the third day in the last four, and all the major averages are on pace for monthly gains. The Dow is up 2.6% for the month of November. The S&P has gained 3.1% and NASDAQ has moved forward 3.4%
Elsewhere, retail stocks also lifted investor sentiment. Walmart shares jumped after the company beat Wall Street earnings and revenue estimates and boosted full-year guidance. Home Depot reported strong results too but kept guidance in place for the full year. Its shares rose slightly.
Taiwan Semiconductor, Louisiana-Pacific and Paramount also jumped after regulatory filings showed that Warren Buffett’s Berkshire Hathaway had bought new positions in the first two, and raised its stake in the last.
Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.
The producer price index, a measure of wholesale inflation, rose 0.2% for the month of October, versus the consensus estimate for a 0.4% increase from Dow Jones. The report comes after last week’s consumer price index data showed signs of inflationary pressure abating last month, sparking a sharp rally.
Prices for the 10-year Treasury fell hard, raising yields to 3.98% from Monday’s 3.87%. Treasury prices and yields move in opposite directions.
Oil prices docked 84 cents to $85.03 U.S. a barrel.
Gold prices faded three dollars to $1,773.90 U.S. an ounce.
Indexes Head North on Lighter-than-Expected Inflation Report