Equities in Canada’s largest centre enjoyed muscular gains on Tuesday, on optimism around the earnings season, although a slide in crude prices kept gains in check.
The S&P/TSX Composite gained 141.68 points to close Tuesday at 21,377.18
The Canadian dollar faded 0.22 cents at 78.73 cents U.S.
Among resource stocks – the stars of the show – Capstone stretched 23 cents, or 4.1%, to $5.90, while Interfor tacked on $1.48, or 4%, to $38.23.
In the industrial sector, Air Canada soared $1.20, or 5.1%, to $24.88, while Mullen Group moved north 49 cents, or 4.3%, to $12.00.
In consumer stocks, Canada Goose Holdings also took off, grabbing $1.68, or 4.2%, to $41.78, while Dollarama jumped $1.61, or 2.5%, to $67.40.
Energy was the lone negative group, with Cenovus Energy sagged $1.18, or 6%, to $18.38, while Arc Resources backpedaled 89 cents, or 5.9%, to $14.21.
On the economic front, Statistics Canada reported merchandise imports rose 3.7% in December, while exports were down 0.9%. As a result, Canada’s merchandise trade balance returned to a deficit position, moving from a surplus of $2.5 billion in November to a deficit of $137 million in December.
The TSX Venture Exchange inched up 0.3 points to 858.95.
All but one of the 12 TSX subgroups were in the green by the closing bell, with materials zooming 1.8%, industrials muscling up 1.5%, and consumer discretionary stocks, 1.4% stronger.
Only energy missed the festivities, off 4.1%.
U.S. stocks rose on Tuesday as investors digested another batch of corporate earnings and awaited key inflation data later this week.
The Dow Jones Industrials moved skyward 371.65 points to roar into the close Tuesday at 35,462.78.
The S&P 500 hiked 37.67 points to 4,521.54
The NASDAQ leaped 178.79 points, or 1.3%, to 14,194.46.
Tuesday’s market moves clawed back Monday’s losses for the S&P 500 and NASDAQ. The three major market averages are now positive for the week.
Corporate earnings were driving stock moves on Tuesday. Harley-Davidson jumped more than 15% after the company reported a surprise profit for the fourth quarter. Amgen and Chegg rose 7.8% and nearly 16%, respectively, following their quarterly updates.
Shares of American Express rose 3.3% and JPMorgan gained 1.9%, boosting the Dow.
On the downside, Pfizer shares tumbled 3.6% after the drugmaker’s fourth-quarter revenue came in lower than Wall Street analysts expected. Pfizer’s full-year earnings guidance also disappointed.
CVS Health, GlaxoSmithKline and Toyota are among the companies slated to report earnings later this week.
Elsewhere, Peloton shares rose 18% after the interactive fitness company said it will slash 2,800 jobs in a restructuring effort that will see CEO John Foley step down and transition to executive chair.
The company will report earnings Tuesday after the market closes and during what’s been a turbulent time for the company. The stock surged 20.9% on Monday following reports the company could be a takeover target.
Shares of Snap, which have been volatile during a mixed earnings season for social media stocks, fell 4.7% after the social media company announced a new debt offering.
As of Tuesday morning, about 300 S&P 500 components have reported, with 77% exceeding earnings estimates and 75% topping revenue expectations. However, the strong results have not been enough to dig the market out of the hole created by January’s slide, and weak forward guidance may be part of what is holding back a rebound.
On the economic data front, the Census Bureau said Tuesday that December’s trade balance was a deficit of $80.7 billion. Economists surveyed by Dow Jones survey were expecting a shortfall of $82.8 billion.
Prices for 10-year Treasurys fell, raising yields to 1.96% from Monday’s 1.92%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.68 to $89.64 U.S. a barrel.
Gold prices were up $6.20 to $1,828.00 U.S. an ounce.