Markets

Update: TSX Rallies 26 Points as Crude Oil Prices Rise, Wall Street Gains Ground

Canada's main stock market reversed course Tuesday, with equities rallying following Monday's triple digit decline. The S&P/TSX Composite Index gained 26 points or 0.2% to close at 15,615, supported by Wall Street's rebound and rising crude oil prices . The Dow Jones gained more than 100 points.

Tech and consumer discretionary posted gains of over 1% to lead the way higher on the TSX. Energy also underpinned as crude oil climbed more than 2% to close at $63.40 per barrel. On the other side of the ledger, declines of over 1% on healthcare and materials were headwinds.

In stock news, Loblaw (L.TO) shares were up 0.6% after a new study from Dalhousie University found that trust in the grocer had dropped 10% following the bread price-fixing scandal. Alimentation Couche-Tard (ATD-B.TO) shares were off 6% after the convenience store operator reported adjusted earnings that were little changed but failed to meet expectations. BlackBerry (BB.TO) was up 3% after the company said it would partner with Microsoft to provide security for Office apps used by businesses. Heavily traded First Quantum Minerals (FM.TO) fell 12% after Zambia claimed underpayment of duties while Aurora Cannabis (ACB.TO) was off 3%. Enbridge (ENB.TO) lost a further 2% while Shopify ( SHOP ) gained 5% after announcing a partnership with Instagram.

In economic news, wholesale shipments rose 0.1% in January (m/m) after the revised 0.2% dip (was -0.5%) in December. Sales gains were evident in four of seven subsectors. A 3.1% gain in the food, beverage and tobacco subsector was the stand-out in January, with the increase the largest one month move higher since May 2016. Machinery and equipment sales grew 1.6%, while personal and household goods improved 0.8%. Total sales volumes grew 0.5%, supportive of the projection for a 0.1% increase in January GDP. This was an encouraging report, as the rise in sales volumes contrasts with the 1.1% contraction in manufacturing shipment volumes during January.

The Canadian dollar was little changed at 76.45 US.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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