Equities staged a rally Wednesday in Toronto, after nursing wounds for a full week. Utilities and real-estate powered much of the rally.
The TSX Composite powered 205.53 points, or 1.1%, to close Wednesday at 19,079.
The Canadian dollar inched up 0.09 cents at 72.14 cents U.S.
Utilities proved kings of the hill Wednesday, Brookfield Infra Partners popping $3.33, or 10.6%, to $34.72, while Algonquin Power and Utilities grabbed 33 cents, or 4.7%, to $7.31.
In real-estate, Northwest Health-Care Properties REIT units prospered 19 cents, or 4.7%, to $4.20, while Allied Properties REIT took on 73 cents, or 4.6%, to $16.58.
In consumer stocks, George Weston heightened $3.66, or 2.4%, to $154.08, while Loblaw Companies gathered $1.99, or 1.8%, to $115.41.
Gold let the side down, with Iamgold deleting four cents, or 1.1%, to $3.51, while Sandstorm Gold docked six cents to $6.29. In materials, First Quantum Minerals’ woes continued, the stock losing another $1.38, or 8.6%, to $14.69, while SSR Mining loosed $2.89, or 15.1%, to $16.30.
On the economic slate, Manufacturing PMI in Canada increased to 48.60 points in October from 47.50 points in September of 2023.
Manufacturing PMI in Canada averaged 52.60 points from 2011 until 2023, reaching an all time high of 58.90 points in March 2022 and a record low of 33 points in April of 2020, those figures from Markit Canada.
ON BAYSTREET
The TSX Venture Exchange dipped 0.25 points to 515.82.
All but two of the 12 TSX subgroups were positive by the closing bell, with utilities hiking 3.5%, real-estate up 2.1%, while consumer staples were better by 1.5%.
The two laggards were gold, off 0.3%, and materials, down 0.1%.
ON WALLSTREET
Stocks rallied Wednesday, rebounding from a dismal past three months, after the Federal Reserve kept interest rates unchanged for a second consecutive time — leading investors to think the central bank would stay put for the rest of the year.
The Dow Jones Industrials vaulted 221.71 points, to 33,274.58.
The S&P 500 index progressed 44.06 points, or 1.1%, to 4,237.86.
The NASDAQ surged 210.23 points, or 1.6%, to 13,061.47.
Information technology stocks outperformed, gaining more than 2%. Semiconductor companies Advanced Micro Devices leaped 9.7% and Micron Technology added 3.8%. Nvidia shares were higher by 3%.
The Fed kept rates in a range of 5.25% to 5.5%, as was widely expected. The central bank also said “economic activity expanded at a strong pace in the third quarter.” In previous remarks, it noted the economy was growing at a “solid pace.”
However, Fed Chair Jerome Powell at the post-decision press conference would not rule out a hike next month, saying that the idea that it would be difficult to raise rates after pausing for two meetings was wrong.
Private sector payrolls in October came in weaker than expected, the ADP said Wednesday. Companies added 113,000 workers last month, lower than the 130,000 anticipated by economists polled by Dow Jones.
Other economic data that came out Wednesday morning showed signs of cooling in the economy and labor market. The ISM manufacturing index showed manufacturing activity contracted more than expected in October. The Job Openings and Labor Turnover Survey showed that vacancies rose slightly in September. Private sector payrolls in October came in weaker than expected, the ADP said Wednesday.
Wall Street is coming off a dismal October. The Dow slid 1.4% to end the month, and the S&P 500 fell 2.2%, marking the first three-month losing streak for both indexes since March 2020. Notably, the S&P 500 temporarily fell into correction territory. The NASDAQ Composite dropped 2.8% in October, also falling for a third straight month.
Prices for the 10-year Treasury jumped, lowering yields to 4.76% from Tuesday’s 4.92%. Treasury prices and yields move in opposite directions.
Oil prices sagged seven cents to $80.96 U.S. a barrel.
Gold prices dumped $7.20 to $1,987.10.