Baystreet.ca - Canada's main stock index opened higher on Wednesday, helped by information technology shares, as investors welcomed a U.S. inflation print that lifted hopes for more rate cuts this year by the Federal Reserve.
The TSX screamed higher 231.1 points to open Wednesday to 24,819.68.
The Canadian dollar edged 0.14 cents at 69.82 cents U.S.
On the economic front, Statistics Canada said manufacturing sales increased 0.8% in November, mainly on higher production of aerospace products and parts as well as sales of petroleum and coal products. Sales of motor vehicle parts declined the most.
Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 0.2% to $83.7 billion in November.
Motor vehicle sales declined in November to 160,900 from 164,800 in October.
The Canadian Real Estate Association reported national home sales fell 5.8% month-over-month in December. Actual (not seasonally adjusted) monthly activity came in 19.2% above December 2023.
ON BAYSTREET
The TSX Venture Exchange eked higher 3.18 points to 606.71.
All 12 TSX subgroups were positive in the first hour, led by real-estate, up 1.8%, information technology, improving 1.5%, and financials, richer 1.2%.
ON WALLSTREET
Stocks surged on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December and major U.S. banks kicked off quarterly earnings reporting season with blowout results.
The Dow Jones Industrials soared 698.46 points, or 1.6%, to 43,216.42
The S&P 500 Index jumped 101.74 points, or 1.7%, to 5,944.65.
The NASDAQ re-strengthened 427.45 points, or 2.2%, to 19,471.53.
Fourth-quarter earnings reporting season got off to a positive start Wednesday, with big banks managing to broadly top the Street’s expectations. JPMorgan Chase (NYSE:JPM) shares rose slightly after the bank reported an EPS and revenue beat, which was driven by strong fixed income trading and investment banking results.
Shares of Goldman Sachs (NYSE:GS) added 4.9% after the bank posted a top- and bottom-line beat in the previous quarter, and Wells Fargo (NYSE:WFC) shares jumped 4% after the bank said net interest income would be 1% to 3% higher in 2025. Citigroup (NYSE:C) also gained more than 4% after beating fourth-quarter estimates.
December’s consumer price index showed that core inflation, which excludes food and energy, rose 3.2%, the Bureau of Labor Statistics reported Wednesday. This was a notch down from the previous month and lower than the 3.3% estimated by economists surveyed by Dow Jones. Meanwhile, the 0.4% month-over-month uptick in headline inflation came in slightly above the 0.3% forecast by economists. On a 12-month basis, headline inflation increased 2.9%, which came in line with forecasts.
Prices for the 10-year Treasury were flat, keeping yields at 4.66%.
Oil prices pushed higher $1.42 to $78.92 U.S. a barrel.
Prices for gold powered higher $20.70 an ounce to $2,689.60 U.S.