Equities in Toronto rose to a near nine-week high on Tuesday, driven by gains in materials and energy stocks, after data showed Canada’s annual inflation rate fell more than expected in June.
The TSX sprang ahead 129.91 points to pause for lunch Tuesday at 20,356.76
The Canadian dollar acquired 0.11 cents to 75.84 cents U.S.
Economically speaking, Statistics Canada said its consumer price index rose 2.8% on a year-over-year basis in June, following a 3.4% increase in May. On a seasonally adjusted monthly basis, the CPI rose 0.1% in June.
The agency also reported its industrial produce price index fell 0.6% month over month in June and fell 5.5% year over year., while its raw materials price index declined 1.5% on a monthly basis in June and was 19.7% lower compared with June 2022.
Moreover, Canada Mortgage and Housing Corporation reported housing starts increased by 41% over a month earlier to 281,373 units in June 2023, above market expectations of 220,000 units and marking the largest change in over 10 years, according to the Canada Mortgage and Housing Corporation.
ON BAYSTREET
The TSX Venture Exchange dropped 0.84 points to 624.60.
Eight of the 12 TSX subgroups were higher in the first hour of trading, with energy rumbling 2%, while gold and materials each jumped 1.6%.
The four laggards were weighed most by information technology, sliding 1.3%, while communications dipped 0.6%, and health-care sifted off 0.3%.
ON WALLSTREET
The Dow Jones Industrial Average was higher Tuesday as traders digested better-than-expected corporate earnings.
The 30-stock index popped 363.15 points to hit lunch hour Tuesday at 34,948.50, headed for a seventh straight day of gains.
The S&P 500 added 21.55 points to 4,544.34.
The NASDAQ index regained 41.08 points to 14,288.81.
Bank of America reported better-than-expected earnings for the second quarter, thanks to higher interest rates. The bank stock added 4.7%.
Bank of N.Y. Mellon’s earnings also exceeded expectations, helping lift shares 5%.
Morgan Stanley stock added 6.5% after a beat on both revenue and adjusted earnings per share thanks to record revenue in its wealth management segment. PNC Financial, added 1.2% on the back of mixed second-quarter numbers. J.B. Hunt is slated to report after the bell.
Overall, the earnings season is off to a strong start. Of the S&P 500 that have reported, 84% exceeded profit estimates, according to FactSet.
Meanwhile, investors are seemingly shaking off soft data from the Commerce Department out Tuesday. Advance retail sales ticked up 0.2% month-over-month in June, while economists polled by Dow Jones forecasted a 0.5% increase.
Prices for the 10-year Treasury were ahead, lowering yields to 3.78% from Monday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.24 to $75.39 U.S. a barrel.
Gold prices picked up $26.30 to $1,982.70 U.S. an ounce.