Equities in Canada’s largest market surged on Tuesday on the back of higher commodity prices that boosted its natural resources companies, while banks and insurers also added support as bond yields rose.
The S&P/TSX Composite Index gained 87.18 points – off its highs of the morning -- to greet noon at 15,215.87
The Canadian dollar slipped 0.03 cents to 79.89 cents U.S.
The most influential movers on the index also included Suncor Energy, which rose 1.1% to $38.79, and Canadian Natural Resources, up 1.4% at $37.83.
With copper trading at its highest in five months, investors were buying up shares of some of Canada's biggest miners of the metal, with First Quantum Minerals up 6% to $13.94, Lundin Mining adding 6.4% to $8.51, and Hudbay Minerals gaining 7.7% to $9.34.
The financials group gained, with insurers leading the group as bond yields gained, which reduces the value of their liabilities.
Manulife Financial added 2% to $25.97 and Sun Life Financial gained 1.2% to $47.91.
Westshore Terminals Investment jumped 11.8% to $23.58. Royal Bank of Canada raised its view on the coal shipper's stock to "outperform" and increased its target price to $30.00 from $24.00.
ON BAYSTREET
The TSX Venture Exchange stayed buoyant 2.13 points to 762.82.
Eight of the 12 TSX subgroups were higher by noon, with energy blazing 2.5%, materials stronger by 0.9%, and gold up 0.8%.
The four laggards were weighed most by telecoms, down 0.5%, while utilities and real-estate each slumped 0.4%.
ON WALLSTREET
U.S. stocks traded mostly higher on Tuesday after a slew of major companies reported better-than-expected quarterly results.
The Dow Jones Industrials gained 121.47 points to 21,634.64, with Caterpillar and McDonald's contributing the most gains.
The S&P 500 picked up 10.42 points to 2,480.33, with financials, materials and energy rising more than 1% to lead advancers.
The NASDAQ gained 5.68 points to 6,416.49, surpassing Monday’s all-time high
Caterpillar posted bottom-line results that topped estimates, sending its shares higher.
General Motors and McDonald's also saw their shares climb after reporting quarterly results. However, 3M posted weaker-than-expected results, sending the stock down 6%. Shares of 3M shaved off 83 points from the Dow.
This is the busiest week of the earnings season, with approximately 180 S&P 500 components scheduled to report. Boeing, Coca-Cola, Facebook and Amazon are set to report later this week.
Wall Street also set its sights on the Federal Reserve, as the central bank kicked off a two-day monetary policy meeting. The Fed is largely expected to keep interest rates unchanged. However, investors will parse their statement for clues about the unwinding of its $4.5-trillion balance sheet.
In economic news, major Metro area home prices rose 5.7% in May, according to the S&P CoreLogic Case-Shiller home price index. Consumer confidence data for July exceeded analyst expectations.
Prices for the benchmark 10-year Treasury note tumbled, hoisting yields to 2.32% from Monday’s 2.26%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.36 to $47.70 U.S. a barrel
Gold prices sagged $3.60 to $1,250.70 U.S. an ounce.
