TSX Stays Sharply Upward Midday

BlackBerry Flowers

Canada's main stock index moved higher into noon hour on Tuesday after data showed the economy grew at a record pace in the third quarter and as drugmakers sought swift approval of their COVID-19 vaccines.

The TSX came off its highs of the morning, but still enjoyed strength, advancing 136.99 points to greet noon Tuesday at 17,327.24.

The Canadian dollar jumped 0.23 cents to 77.19 cents U.S.

In resources, Eldorado Gold rocketed $1.12, or 7.3%, to $16.37. First Majestic Silver gained 66 cents, or 4.9%, to $14.18.

In the tech sector, BlackBerry ballooned $4.19, or 54.9%, to $11.82.

On the macroeconomic front, Canada's budget deficit is forecast to hit an historic $381.6 billion on COVID-19 emergency aid, with the federal government eyeing $100 billion in stimulus to be rolled out once the virus is under control.

Elsewhere, Statistics Canada reported real gross domestic product grew 0.8% in September as 16 of 20 industrial sectors were up in the month

Markit Canada’s monthly manufacturing Purchasing Managers Index registered 55.8 in November, up slightly from 55.5 in October, signaling another robust expansion in business conditions.

The agency said its index has now posted above the 50.0 no-change threshold in each month since July.

ON BAYSTREET

The TSX Venture Exchange remained upward 4.16 points to pause for lunch at 754.58.

All but three of the 12 TSX subgroups remained in positive country midday, with gold towering 2.1%, information technology ahead 2%, and materials better by 1.6%.

The three laggards were health-care, tailing off 2.2%, while communications and utilities each lost 0.1%.

ON WALLSTREET

U.S. stocks jumped on Tuesday, with the Dow Jones Industrial Average kicking off December by adding to its historic rally from November.

The 30-stock index stayed solid 240.72 points at 29,879.36. Travelers and UnitedHealth rose more than 3% each to lead the Dow higher.

The S&P 500 regrouped 44.26 points, or 1.2%, to 3,665.89. Energy marched 2.2%, and utilities rose 2.1%, the best-performing sectors in the index.

The NASDAQ grew 152.45 points, or 1.3%, to 12,351.19.

Sentiment got a lift after news reports that Treasury Secretary Steven Mnuchin will speak with House Speaker Nancy Pelosi about "keeping the government running," adding that "I’m sure we’ll also be mentioning COVID Relief." Meanwhile, a group of lawmakers unveiled a $908-billion stimulus plan, which includes $208 billion in Paycheck Protection Program small business loans.

The Dow rallied 11.8% in November, posting its best one-month performance since January 1987. The S&P 500 hiked 10.8% and the NASDAQ rose11.8%, for their strongest monthly advances since April. After November’s gain, the S&P 500 is up 12.1% for 2020.

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin are speaking before Congress this week. Powell called the U.S. economic outlook "extraordinarily uncertain" in prepared remarks to be delivered Tuesday.

Tesla’s shares popped 3.6% after S&P Dow Jones Indices said on Monday night the electric-car maker will be added to the S&P 500 on Dec. 21 in a single step despite its large size.

Shares of Zoom Video fell 11.6% despite the video-conferencing giant reporting better-than-expected earnings for the third quarter.

Prices for the 10-Year Treasury fell hard, driving yields up to 0.92% from Monday’s 0.85%. Treasury prices and yields move in opposite directions.

Oil prices dipped 63 cents to $44.71 U.S. a barrel.

Gold prices regained $33.20 to $1,814.10 U.S.