Stocks in Toronto were moving higher Tuesday afternoon led by a positive move in mining stocks while a pull back in the price of gold put pressure on gold stocks.
The S&P/TSX Composite Index was up 35.47 points to 14987.35 in afternoon trading Tuesday.
On the economic front, Canadian retail trade grew less than expected in June, edging up 0.1% after three months of solid growth, pulled down by declines in sales of autos and gas, Statistics Canada data indicated on Tuesday. Analysts had predicted a 0.3% advance in retail trade.
The Canadian dollar inched ahead 0.003 cents to 79.63 cents U.S.
ON BAYSTREET
The TSX Venture Exchange dipped 1.68 points to 766.62.
Four of the 12 TSX subgroups were negative this afternoon, with gold stocks retreating 0.70%, telecoms off 0.25% and material issues slumping 0.17%.
On the upside, base metal stocks were ahead 1.58%, health-care stocks rose 1.20% and consumer discretionary issues gained 0.82%.
Gold prices were down $4.63 to $1,287.33 U.S. an ounce.
ON WALLSTREET
Stocks in New York were rallying Tuesday afternoon, with the blue-chip gauge on track to book its sharpest one-day rise in about four months amid speculation that the Trump administration is gaining momentum in its efforts to reform the tax code.
The Dow was up about 150 points or 0.7% at 21,853. The Nasdaq Composite Index was surging 1.2% at 6,286 and on pace to snap its 4-session slump, while the S&P 500 index edged up 0.8% at 2,447 and on track to add to Monday's climb.
Defense stocks Boeing Co., General Dynamics Corp., Northrup Grumman Corp. and Lockheed Martin Corp. were higher after President Donald Trump outlined his plans for the long-running conflict in Afghanistan. In a prime-time address Monday evening, Trump promised to "change dramatically" the U.S. approach to the war but was scant on details on what the changes will be. Trump acknowledged his past calls for withdrawing entirely from Afghanistan but said that after much consideration he had decided to stay in and "fight to win."
Traders are looking ahead to the Kansas City Federal Reserve Bank’s central bank symposium in Jackson Hole, Wyo., which starts Thursday and runs through Saturday. Federal Reserve Chairwoman Janet Yellen and European Central Bank President Mario Draghi are among top speakers, with investors hoping to get hints on the future monetary policy path from both institutions.
In corporate news, Starbucks Corp. rose more than 2% after Morgan Stanley reiterated an overweight rating, but cut its price target to $62 from $68. Analyst Brian Hayes said Morgan Stanley analysis "shows that the market has already quietly adjusted to a more moderate 12-17%."
Best Buy Co. Inc. added more than 1% on Tuesday after Jefferies analysts expressed confidence in quarterly same-store sales ahead of its earnings report next week. The electronics retailer previously guided for quarterly same-store sales growth of 1.5% to 2.5%. Best Buy is set to report on Aug. 29.
On the economic front, Home prices increased in the second quarter, but moved only slightly from May to June, according to the House Price Index from the Federal Housing Finance Agency.
The HPI increased 1.7% from the first quarter to the second quarter of 2017, and increased 6.6% from the second quarter last year. However, the seasonally adjusted month index increased only 0.1% from May to June.
The benchmark 10-year Treasury note yield rose more than 2 basis points to 2.2 percent, while the two-year yield advanced to trade at 1.322 percent.
The October crude contract was ahead 42 cents to $47.95 US per barrel.
