TSX rallies to close higher after mixed day, while dollar and gold prices rise

TSX rallies to close higher after mixed day, while dollar and gold prices rise

TORONTO — A late-day recovery in crude oil helped lift share prices to pull Canada’s main stock index out of a listless trading pattern and allow it to end with a slight increase on Wednesday.

The S&P/TSX composite index closed up 8.10 points at 16,171.06 after a Toronto Stock Exchange session where no sector made remarkable moves either positive or negative.

The lone bright spots were the Canadian dollar, up 0.15 of a cent to 74.52 cents US, and the August gold contract, which continued its run of strength to close at US$1,865.10 an ounce, up US$21.20.

“The market has had a really big second quarter after the down first quarter, and to start July we’ve had a really good run with a lot of indices up four to five per cent,” said Greg Taylor, chief investment officer for Purpose Investments.

“Now, as we head into earnings, it’s all just about trying to figure out if those moves were justified, if there are going to be any negative surprises that would put a bit of a halt to these moves.”

He said investors are cautious ahead of corporate updates expected to be released as companies report on results from a second quarter that was highly influenced by the global COVID-19 pandemic lockdowns.

News was scarce on Wednesday, Taylor said, but many investors were watching results from Rogers Communications Inc.

The telecom company’s shares closed down 83 cents or 1.5 per cent at $54.96 after missing analyst expectations with adjusted net income of $310 million and revenue of $3.15 billion in the second quarter.

On the other hand, Canadian Pacific Railway Ltd. beat expectations even though its net income decreased 12.3 per cent to $635 million in the second quarter. Its shares rose 46 cents or 0.13 per cent to $365.47.

Canadian National Railway Co., which reported results after the market closed on Tuesday, rose $1.18 or 0.92 per cent to $129.87. It said it is recalling some laid off workers and is cautiously optimistic about a recovery in its business.

“The transportation sector is one that will certainly benefit as the economy reopens (after the pandemic),” said Taylor.

The September crude contract was down two cents at US$41.90 per barrel on Wednesday and the August natural gas contract was up 0.6 cents at US$1.68 per mmBTU.

Canadian sectors in the red included energy, financials, health and technology; those in the green included materials, consumer goods, industrials and real estate.

The September copper contract was down 33.5 cents at just over US$2.92 a pound.

In New York, the Dow Jones industrial average closed up 165.44 points at 27,005.84.

The S&P 500 index was up 18.72 points at 3,276.02, while the Nasdaq composite was up 25.76 points at 10,706.13.

Taylor said nagging fears were bubbling up in the absence of news on which to base market activity.

On Wednesday, the United States said it had ordered China to close its consulate in Houston to protect the private information of Americans, a move strongly condemned by the Chinese.

“I think … there’s starting to be a little concern that the earnings could be a negative surprise, China trade tensions could flare up again, or the U.S. election, which really had been overshadowed by the coronavirus crisis, could become something that investors start to worry about,” he said.

By Dan Healing in Calgary

This report by The Canadian Press was first published July 22, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD, TSX:RCI.B, TSX:CP, TSX:CNR)

The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

robbery
UPDATE: Suspect identified in early morning shooting

Rimbey RCMP had responded to a complaint of an armed robbery at the Bluffton City General Store

Health Minister Tyler Shandro and Dr. Deena Hinshaw, the chief medical officer of health, receive flu shot. Photo via Government of Alberta
COVID-19: One more death in central zone

Ponoka County on province’s watchlist

Many rural municipalities were concerned about a proposed reduction to their industrial revenues, but Alberta’s Municipal Affairs minister has come up with an alternative solution. (Photo contributed)
Province and rural municipalities agree on a plan to support Alberta’s energy industry

Creating new wells or pipelines would result in a three year ‘tax holiday’

The influenza vaccine will be available at no cost starting Monday in Alberta. “The more that we can avoid influenza-related tests, emergency visits and hospitalizations, the stronger our system will be to support those with COVID-19 and all other health needs," says Dr. Deena Hinshaw, the province's chief medical officer of health. (AP Photo/Ted S. Warren)
Hinshaw urges Albertans to get flu shot as COVID cases jump by 332

Alberta’s central zone now has 132 active COVID-19 cases

The Bellows family on vacation last year in Mexico. L-R: Angel, Ryan, Darrel, Grace and Michael. (Photo submitted)
Rimbey community rallying behind family after cancer diagnosis

Michael Bellows, 12, a ‘strong, resilient kid’ says father

In this photo provided by Shannon Kiss, smoke from the CalWood Fire billows, Sunday, Oct. 18, 2020, as seen from Gunbarrel, Colo. (Shannon Kiss via AP)
‘First guys out:’ Western Canadian air tanker fleet busy despite drop in wildfires

CEO believes wildfires have become more dangerous in recent years as people live closer to where they start

A passer-by walks past a COVID-19 testing clinic in Montreal, Friday, Oct. 16, 2020. THE CANADIAN PRESS/Ryan Remiorz
Canada ‘yet to see’ deaths due to recent COVID surge as cases hit 200,000

Much of the increase in case numbers can be attributed to Ontario and Quebec

Executive Director of Agape Kate Halas (left) receives $1000 from Sgt. Eric Christensen (right) on behalf of Agape. Photo/ Shaela Dansereau.
Former Wetaskiwin Peace Officer wins provincial award; gives back to Wetaskiwin community

Eric Christensen has won the Alberta Association of Community Peace Officers Award of Excellence.

Agriculture Minister Devin Dreeshen (Alberta government photo)
Big boost for Alberta college agriculture research

The $2-million agreement to benefit Lethbridge College’s applied research team

Grant and Barbara Howse, in quarantine in Invermere. Mike Turner photo
Denied entry into U.S., Canadian couple still forced to quarantine for 2 weeks

The rules around crossing the U.S. border led to a bizarre situation for an Invermere couple

Employee Sophia Lovink shows off a bag of merchandise in Toronto on Thursday, June 11, 2020. (THE CANADIAN PRESS/Nathan Denette)
Canada gets C-average grade on 2nd year of cannabis legalization

Cannabis Council of Canada releases report card on federal government and legalization

Canadian and American flags fly near the Ambassador Bridge at the Canada-USA border crossing in Windsor, Ont. on Saturday, March 21, 2020. Restrictions on non-essential travel between Canada and the United States are being extended until at least Nov. 21. THE CANADIAN PRESS/Rob Gurdebeke
Non-essential travel restrictions at Canada-U.S. border extended to at least Nov. 21

The restrictions do not apply to those providing essential services in either country

(The Canadian Perss)
Banff wolves have lower survival rate due to hunting, trapping outside park boundary

Researchers looked at 72 radio-collared wolves in the national park from 1987 to August 2019

Democratic presidential candidate and former Vice President Joe Biden speaks at Miramar Regional Park in Miramar, Fla., Tuesday, Oct. 13, 2020. Alberta Premier Jason Kenney is still hopeful about the Keystone pipeline if there’s a change in government in the U.S. next month, saying Alberta has been engaging with American officials from both sides of the aisle. THE CANADIAN PRESS/AP-Carolyn Kaster
Alberta premier says he’s still hopeful about Keystone, even if Biden elected

The Alberta government has agreed to invest about US$1.1 billion as equity in the project

Most Read