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

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

Alberta has 3,651 active cases of COVID-19.  (File photo)
750 new COVID-19 cases identified in Alberta Sunday

Central zone currently has 1,182 active cases of the virus

The Pfizer-BioNTech vaccine deliveres to Canada are being delayed because of complications at their European distribution facility. THE CANADIAN PRESS/Nathan Denette
Delays of Pfizer vaccine delivery to impact Alberta’s vaccination plans

Alberta has administered 74,000 doses of the COVID-19 vaccine so far

blessing
Bentley Blessing Pantry continues to faithfully serve the community

‘We just wanted to make everyone aware that we are still here to serve you throughout this coming year.’

A scene from “Canada and the Gulf War: In their own words,” a video by The Memory Project, a program of Historica Canada, is shown in this undated illustration. THE CANADIAN PRESS/HO - Historica Canada
New video marks Canada’s contributions to first Gulf War on 30th anniversary

Veterans Affairs Canada says around 4,500 Canadian military personnel served during the war

Lacombe is looking at its options for reclaiming sewage lagoons that are no longer needed. Vesta Energy Ltd. has signed a deal to use three lagoons to store water for fracking.
Map from City of Lacombe
Energy company to use former Lacombe sewage lagoons to store fracking water

Vesta Energy Ltd. will pay Lacombe more than $100,000 a year in 20-year deal

Alberta Chief Medical Officer of Health Dr. Deena Hinshaw said on Monday that11 more people had died from COVID-19, bringing the province’s death toll to 1,447. (Photography by Chris Schwarz/Government of Alberta)
Eleven more Albertans die from COVID-19

There were 739 people in hospital, 120 in ICU on Monday

World Juniors’ referee Mike Langin makes a called during the Canada vs. Slovakia at the 2021 World Junior Championship at Rogers Place in Edmonton, Dec. 27, 2020. (Photo by Matthew Murnaghan/Hockey Canada)
Former Sylvan Lake man lives his dream at World Junior Championships

Mike Langin was one the 25 Canadian officials who worked during the tournament

Indigenous people gather for a ceremony for Cindy Gladue held at the courthouse in Edmonton, Alta, on Wednesday, January 13, 2021. Bradley Barton, a 52-year-old long-haul truck driver from Ontario on trial for manslaughter, is accused of killing Gladue. THE CANADIAN PRESS/Jason Franson
People stand in support of mother as new trial gets underway in death of Cindy Gladue

Bradley Barton, a long-haul truck driver from Ontario, will now be tried for manslaughter in the 2011 death

(Photo submitted)
RCMP say ice climber seriously injured after reportedly falling 12 metres near Abraham Lake

Police say man’s injuries were serious but not life-threatening

U.S. military units march in front of the Capitol, Monday, Jan. 18, 2021 in Washington, as they rehearse for President-elect Joe Biden’s inauguration ceremony, which will be held at the Capitol on Wednesday. (AP Photo/J. Scott Applewhite)
Biden aims for unifying speech at daunting moment for U.S.

President Donald Trump won’t be there to hear it

Facebook/ The Open Door 24/7 Integrated Response Hub- Wetaskiwin.
Wetaskiwin residents show support for 24/7 Integrated Response Hub

Wetaskiwin residents and City Council members showed support for Hub with positive signs.

Conservative Leader Erin O’Toole holds a press conference on Parliament Hill, in Ottawa on December 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
No place for ‘far right’ in Conservative Party, Erin O’Toole says

O’Toole condemned the Capitol attack as ‘horrifying’ and sought to distance himself and the Tories from Trumpism

Most Read