Update: TSX Little Changed After Spending Much of the Tuesday Session in Negative Territory
Canada's main stock market was weaker for much of the day, in tandem with Wall Street, but slipped into positive territory near the end of Tuesday's session. Trading was thin, however, as most of Europe and some Asian markets were closed for Mayday holidays. The S&P/TSX Composite Index gained 11 points to close at 15,618. U.S. stocks were mixed with the Nasdaq gaining ground and the Dow Jones falling.
In stock news, heavily traded Encana (ECA.TO) gained 1% after beating analysts' estimates with a 50% rise in adjusted profit for the first-quarter, helped by higher production and stronger crude prices. Baytex (BTE.TO) climbed 0.7%. Precision Drilling (PD.TO) shed nearly 5% on weaker oil prices. Cannabis stocks were mostly lower, led by Aurora Cannabis (ACB.TO), which fell 2.7%.
In economics news, Canadian GDP rebounded 0.4% in February after the 0.1% drop in January. The magnitude of the recovery was larger than expected, but the risks around this report were to the upside. Goods sector output surged 1.2% after the 0.5% drop in January, driven by manufacturing, construction and mining and oil and gas extraction. Indeed, mining, quarrying, oil and gas sector production grew 2.4%. Conventional oil and gas extraction rose 2.9%. Non-conventional oil extraction grew 3.0%, offsetting some of January's decline as production moved back toward normal levels after the temporary factors impacted production in January. Manufacturing production bounced 1.0%, while construction gained 0.7%. Service producing industries grew 0.1% after the flat reading in January. Manufacturing trade is due Thursday.
The Canadian dollar was also little changed, down 9 basis points to 77.77 US.
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