(CONTAINS AMOUNT OF TSX'S GAIN)
Toronto stocks inched higher at open on Wednesday on gains in materials shares, while investors assessed Canadian retail sales data for more clues to the Bank of Canada's interest rate path.
The TSX recovered 147 points to begin Wednesday trading at 19,691.21.
The Canadian dollar slid 0.07 cents to 73.76 cents U.S.
Canada's big bank results are expected to highlight the challenges lenders are facing in setting aside more funds to cover potential bad loans in a tough economy that has led to a slowdown in deal-making and forced borrowers to rethink new mortgages.
Royal Bank of Canada and Toronto-Dominion Bank will kick off the earning season on Thursday.
RBC shares gained $1.02 to $120.73. Shares in TD captured 69 cents to $83.25.
The economic spotlight shines Wednesday morning on retail sales in this country, which in June increased 0.1% to $65.9 billion. Sales increased in three of nine subsectors and were led by increases at motor vehicle and parts dealers.
ON BAYSTREET
The TSX Venture Exchange handed back 3.1 points to 582.24.
Seven of the 12 TSX subgroups finished the day in the red, weighed by financials down 1.2%, while consumer staples and health-care were each off 0.7%%.
The five gainers were led by gold, ahead 0.8%, while information technology climbed 0.4%, and materials made their way north 0.2%.
ON WALLSTREET
Stocks climbed Wednesday as Wall Street awaited the latest quarterly figures from Nvidia, the high-flying chipmaker that’s been bolstered by the artificial intelligence craze on Wall Street.
The Dow Jones Industrials gained 70.14 points to open Wednesday’s trading at 34,358.97.
The S&P 500 index recovered 27.66 points to 4,387.65.
The tech-heavy NASDAQ index surged 147.84 points to 13,653.71.
Nvidia is slated to report second-quarter earnings after the bell. Analysts polled by Refinitiv expect the company to report sharp year-over-year spikes in profit and revenue for the second quarter. Nvidia is the best-performing S&P 500 stock of 2023, up more than 200%, as investors cheer the company’s AI-related prospects.
Investors will look to the report for signs on whether the market can resume this year’s move higher, or if the August downturn will be prolonged. The S&P 500 is down more than 4% this month. Shares rose slightly on Wednesday ahead of the release.
Major athletic goods retailers saw their shares drop on Wednesday.
Nike fell for a 10th straight day, its longest slide on record, losing 3%. Foot Locker shares plunged 34% after reporting shrinking sales and lowering its forecast for the second time this year, while athletic goods retailer Dick’s Sporting Goods fell 24% in its worst daily performance ever after coming up short of Wall Street expectations on Tuesday.
Meanwhile, lifestyle apparel retailer Abercrombie & Fitch shares popped nearly 19% after flying past earnings and sales expectations for the quarter.
Beyond the earnings slated for Wednesday, investors will also be watching for economic data on new home sales and purchasing. They’ll also be readying for the start of a two-day Federal Reserve symposium in Jackson Hole, Wyoming, beginning Thursday. Fed Chair Jerome Powell is expected to deliver remarks Friday.
Prices for the 10-year Treasury hiked, reducing yields to 4.23% from Tuesday’s 4.33%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.35 to $78.29 U.S. a barrel.
Gold prices climbed $18.50 to $1,944.50 U.S. an ounce.
