Big Rally on Bay St.

Caterpillar Surges

(CORRECTS TYPO IN 2nd AND 4TH GRAF.)

Equities in Canada’s largest market grew by leaps and bounds Tuesday, as relief over fewer cases of the coronavirus in several American jurisdictions made its presence felt.

The S&P/TSX Composite Index barreled 269.04 points, or 1.7%, to close Tuesday at 15,908.45.

The Canadian dollar docked 0.03 cents at 73.45 cents U.S.

Energy stocks led the charge, with Seven Generations hoisting 24 cents, or 7.9%, to $3.29, while Whitecap Resources grabbed 13 cents, or 6.1%. to $2.28.

In gold, Kinross Gold soared 47 cents, or 4.7%, to $10.45, while Alamos Gold hiked 4.7% to $4.62.

In other resource issues, Franco-Nevada hiked $6.24, or 3.2%, to $198.99, while Norbord traveled $2.10, or 5.9%, to $37.46.

Real-estate stocks were another matter, however, as Boardwalk REIT dropped 66 cents, or 2.3%, to $28.33, while Artis REIT dipped 15 cents, or 2%, to $7.42.

Health-care stocks trailed Monday as well, with Aurora Cannabis sank 25 cents, or 1.5%, to $16.20, while Aurinia Pharmaceutical docked 30 cents, or 1.6%, to $19.68.

In tech issues, Photon Control slid 11 cents, or 5.8%, to $1.00, while Lightspeed POS handed over $1.22, or 3.6%, to $32.43.

As Mexico celebrated a new trade deal with the United States and Canada on July 1, a group of Canadian energy investors warned their government that Mexico could already be violating the agreement for failing to respect contracts.

Moreover, Canada and the U.S. are reportedly set to extend a ban on non-essential travel that was imposed to fight the coronavirus outbreak, although a final decision has not been taken.

ON BAYSTREET

The TSX Venture Exchange came off its lows of the morning, but was still behind Monday’s close by 3.94 points by the close to 662.55.

All but three of the 12 TSX subgroups were higher by the closing bell, with energy gushing 3.9%, gold shining brighter 3.5%, and materials up 2.6%.

The three laggards were real-estate, fading 0.9%, while health-care and information technology each slid 0.3%. 1.3%,

ON WALLSTREET

Stocks rose on Tuesday as investors added exposure to some of the more cyclical names in the market while Big Tech underperformed.

The Dow Jones Industrials popped 556.79 points, or 2.1%, to 26,642.59. It was the 30-stock average’s best day since June 29.

Caterpillar was the best-performing Dow stock, rising more than 4%. Exxon Mobil and Chevron were up more than 3% each as well. Boeing closed 2.5% higher.

The S&P 500 gained 42.3 points, or 1.3%, to 3,197.52. At the S&P 500 sector level, energy jumped 3.6% while materials and industrials each gained more than 2%.
The tech-heavy NASDAQ muscled up 97.73 points to 10,488.58. Big Tech — which has been a stalwart on Wall Street all year as investors bet these stocks will stay resilient during the coronavirus pandemic — lagged.

Amazon lopped off 0.6%, and Netflix was down 0.1%. Alphabet rose 0.6% after being down for most of the day.

Sentiment also got a boost after Florida reported a daily coronavirus case increase that was below a seven-day average. California’s daily COVID case rate decreased slightly from Monday’s as well.

JPMorgan Chase reported better-than-expected results for the second quarter on the back of a massive surge in trading revenue. Citigroup’s second-quarter earnings were also driven in part by a sharp uptick in trading revenue. JPMorgan shares closed 0.6% higher while Citigroup lost 3.9%.

Wells Fargo struggled, falling 4.6% after reporting a $2.4-billion loss and slashing its dividend to 10 cents per share from 51 cents per share.

Prices for the 10-Year Treasury lost ground, raising yields back to Monday’s 0.63%. Treasury prices and yields move in opposite directions.

Oil prices resurfaced 16 cents to $40.26 U.S. a barrel.

Gold prices shed $1.10 to $1,813.00 U.S. an ounce.