Baystreet.ca - Equities throughout North America attached themselves to the good vibes promised by lower interest rates, which officials say are imminent.
The TSX Composite Index jumped 243.71 points, or 1.1%, to conclude Tuesday trading at 22,995.39.
The Canadian dollar inched up 0.03 cents to 73.14 cents U.S.
Gold surged, led by NovaGold (TSX:NG), leaping 42 cents, or 7.3%, to $6.20, while Barrick Gold (NYSE:GOLD) hiked $1.20, or 4.8%, to $26.32.
In materials, MAG Silver (TSX:MAG) gained 96 cents, or 5.4%, to $19.15, while First Majestic leaped 48 cents, or 5.4%, to $9.33.
Among consumer discretionary stocks, Sleep Country (TSX:ZZZ) Canada spiked $1.11, or 4.3%, to $27.20, while Restaurant Brands International (TSX:QSR) flew $3.22, or 3.3%, to $102.19.
Only energy stocks had something missing, as PrairieSky Royalty (TSX:PSK) sank 69 cents, or 2.4%, to $27.81, while MEG Energy (TSX:MEG) lost 66 cents, or 2.3%, to $28.73.
In the economic data Monday, Statistics Canada reported the consumer price index in June rose 2.7% on a year-over-year basis, down from a 2.9% gain in May. On a seasonally adjusted monthly basis, the CPI rose 0.1% in June.
Canada Mortgage and Housing Corporation reported the total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada decreased 9% in June (241,672 units) compared to May (264,929),
ON BAYSTREET
The TSX Venture Exchange gained 4.59 points to 599.14.
All but one of the 12 TSX subgroups remained positive at the close, with gold stronger 3.1%, materials, improving 1.9%, and consumer discretionary stocks, ahead 1.7%.
Only energy fell short, down 1.4%.
ON WALLSTREET
The Dow Jones Industrial Average advanced to new highs on Tuesday, as the bull market broadened out beyond technology names on hopes of forthcoming interest rate cuts.
The 30-stock index vaulted 742.82 points, or 1.9%, to 40,954.54.
The S&P 500 index picked up 35.99 points to 5,649.09.
The NASDAQ grew 36.77 points to 18,509.34.Industrial bellwether Caterpillar (NYSE:CAT) climbed more than 4%, making it the second-biggest gainer in the Dow behind UnitedHealth (NYSE:UNH). The insurer surged more than 6% on the back of better-than-expected second-quarter results.
Financials — another trailing bull market group — gained after earnings from Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) came in ahead of analyst forecasts. Bank of America jumped 5%, while Morgan Stanley added more than 1%.
Retail sales data also came in better than anticipated, which could ease concerns that the consumer was buckling. June sales were unchanged, while economists polled by Dow Jones predicted a decline of 0.4%. Excluding autos, sales rose 0.4%, a larger gain than the 0.1% consensus forecast.
Prices for the 10-year Treasury strengthened, lowering yields to 4.16% from Monday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.08 at $80.83 U.S. a barrel.
Gold prices gained $43.00 to $2,471.90