Stocks in Toronto continued upward Tuesday morning, the start of a short week, led by the financials and energy groups as oil rallied and Wall Street stocks moved higher.
The S&P/TSX Composite Index rose 50.3 points – off its highs of the morning -- to greet noon at 13,969.88
The Canadian dollar surged 0.13 cents to 76.22 cents U.S.
Canadian markets were shuttered Monday for the Victoria Day holiday.
Royal Bank of Canada rose 1.1% to $78.74, and Bank of Nova Scotia advanced 1.7% to $64.18.
Canada's biggest banks still are expected to set aside more funds to cover bad loans to the oil and gas sector, eating into their profits when they announce second quarter results this week.
The energy group climbed, including a 2.9% gain for Suncor Energy to $35.51.
The rally in energy stocks comes after authorities in Canada lifted evacuation orders on Monday for all work camps and some additional oil facilities that had been shuttered when a massive wildfire threatened the nation's energy hub, a significant step for companies eager to restart production.
Barrick Gold fell 4.9% to $22.68, while Goldcorp was down 4% at $21.86.
ON BAYSTREET
The TSX Venture Exchange slid 6.42 points to 679.72
All but three of the 13 TSX subgroups remained ahead by noon, as financials spiked 1.2%, while consumer staples and energy each gained 1.1%.
The three laggards were gold, down 5.1%, materials, sliding 3.5%, and metals and mining, down 2.1%.
ON WALLSTREET
U.S. stocks climbed more than 1% Tuesday following sharp gains in European stocks.
The Dow Jones Industrials flew 217.61 points, or 1.2%, to 17,710.54, with UnitedHealth, 3M and Goldman Sachs contributing the most to gains as nearly all constituents rose.
The S&P 500 was positive 25.31 points, or 1.2% to 2,073.35. Tech and financials led all S&P 500 sectors higher.
The NASDAQ Composite leaped 84.61 points, or 1.8%, to 4,850.39, trading above its 200-day moving average for the first time in intraday trade since late April.
In other earnings news, Best Buy reported earnings that beat on both the top and bottom line but gave current-quarter forecast below Street forecasts. Separately, Best Buy CFO Sharon McCollam is stepping down June 14, and will be replaced by Chief Strategic Growth Officer Corie Barry.
AutoZone posted earnings that missed expectations and revenue below estimates, primarily due to weather-related factors in certain areas of the country and a legal charge, the auto parts retailer said in a release.
Toll Brothers traded more than 8% higher, tracking for its best day since 2013. The luxury homebuilder reported earnings that beat on both the top and bottom line, as the company sold more luxury homes at higher prices, mainly in California. The firm also raised its forecast for home sales.
New home sales for April jumped 16.6% to a seasonally-adjusted annual rate of 619,000 units, topping expectations and the highest level since January 2008.
Prices for the 10-year Treasury fell back, raising yields to 1.88% from Monday’s 1.86%. Treasury prices and yields move in opposite directions.
Oil prices regained 58 cents a barrel to $48.66 U.S.
Gold prices plummeted $17.91 to $1,231.22 U.S. an ounce.
