Baystreet.ca - Equities in this country rose to their highest in over a week on Tuesday, led by tech and financial stocks, after soft U.S. inflation data maintained hopes for a September rate cut by the Federal Reserve.
The TSX Composite Index surged 114.97 points to break for noon EDT Tuesday at 22,513.90.
The Canadian dollar eked ahead 0.07 cents to 72.83 cents U.S.
Engineering and professional services firm WSP Global said it would acquire U.S.-based Power Engineers for $1.78 billion. Shares in WSP perked 94 cents to $213.13.
Sun Life Financial (TSX:SLF) rose $2.67, or 4.1%, to $68.61 after the life insurance firm beat second-quarter profit estimates, strengthening the financial sector.Among other Canadian stocks, Orla Mining shares rose 25 cents, or 5%, to $5.23 to top the TSX index after the miner reported second-quarter results. ON BAYSTREET
The TSX Venture Exchange advanced 3.82 points to 544.47.
All but three of the 12 TSX subgroups surged ahead, led by information technology, up 1.9%, while gold brightened 1.1%, and consumer staples improved 0.9%.
The three laggards proved to be health-care, sliding 0.4%, energy, down by the same margin, and industrials, off 0.1%.
ON WALLSTREET
Stocks rallied Tuesday, scaling back closer to the record levels seen last month before a
The Dow Jones Industrial index climbed 258.07 points by noon hour to 39,615.08.
The S&P 500 index gained 63.53 points, or 1.2%, to 5,407.92.
The NASDAQ popped 312.19 points, or 1.9%, to 17,092.65.
Shares of Home Depot (NYSE:HD) dropped 1.6% after the home improvement retailer cut its full-year sales outlook.
Starbucks (NASDAQ:SBUX) surged more than 20% after the coffee chain tapped current Chipotle chief executive Brian Niccol as its next CEO. Shares of Chipotle sank more than 9%.
The producer price index — a measure of wholesale prices — increased 0.1% last month. Economists expected the reading to show a monthly gain of 0.2% in July, in line with the previous month’s reading, according to Dow Jones consensus estimates.
The PPI encouraged investors ahead of the more widely followed consumer price index out Wednesday morning, which is expected to show an increase of 0.2% last month, up from a 0.1% decline in the prior month. The data could give an uncertain market some direction after last week’s wild moves.
Prices for the 10-year Treasury gained ground early Tuesday, lowering yields to 3.86% from Monday’s 3.91%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.67 at $78.39 U.S. a barrel.
Gold prices were better by $5.30 to $2,509.30.