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

Just Posted

The City of Red Deer sits at 249 active cases of the virus, after hitting a peak of 565 active cases on Feb. 22. (Black Press file image)
Red Deer down to 119 active COVID-19 cases

Province identifies 179 new cases Saturday

Member Terry Parsons’ custom built track vehicle.
Forestburg’s Area 53 Racetrack gears up for action-packed season

Site will also host a portion of the ‘Miles of Mayhem’ event in July

File photo
Sylvan Lake NexSource Centre reopens Monday

As part of the provincial reopening plan, the recreation facility is able to open to the public

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

Denmark’s Christian Eriksen receives medical attention after collapsing during the Euro 2020 soccer championship group B match between Denmark and Finland at Parken stadium in Copenhagen, Saturday, June 12, 2021. (AP Photo/Martin Meissner, Pool)
Christian Eriksen in stable condition, Euro 2020 match resumes

Eriksen was given chest compressions after collapsing on the field during a European Championship

As stories of the horrors of residential schools circulate after the Tk’emlups te Secwepemc First Nation announced it had located what are believed to be the remains of 215 children, Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs said he feels a connection with the former students. THE CANADIAN PRESS/Darryl Dyck
2 sides of the same coin: Ex-foster kids identify with residential school survivors

Grand Chief Stewart Phillip says the child welfare system takes Indigenous children from their families

Airport ground crew offload a plane carrying just under 300,000 doses of the single-shot Johnson & Johnson COVID-19 vaccine which is developed by the Janssen Pharmaceutical Companies at Pearson International Airport during the COVID-19 pandemic in Toronto on Wednesday, April 28, 2021. THE CANADIAN PRESS/Nathan Denette
1st batch of Johnson & Johnson vaccines won’t be released in Canada over quality concerns

The vaccines were quarantined in April before they were distributed to provinces

Grade 12 students at Wetaskiwin Composite High School took place in the annual water fight off school property on June 11, 2021. Shaela Dansereau/ Pipestone Flyer.
Graduating students in Wetaskiwin throw water fight after being told it could result in suspension

Students were told their participation could result in them being barred from graduation ceremonies.

The arrest south of Winnipeg occurred before Bernier was to arrive at a protest in the city. (Twitter/Maxime Bernier)
Maxime Bernier arrested following anti-rules rallies in Manitoba: RCMP

He’s been charged with exceeding public gathering limits and violating Manitoba’s requirement to self-isolate

Most Read