Stocks’ Progress Slows Down by Noon

Paramount, Kinross in Focus

Canada's main stock index jumped to a near two-week high on Tuesday as resources-linked shares gained, while easing COVID-19 restrictions in China raised hopes for stronger global growth.

The S&P/TSX came off its highs of the morning, but still gained 143.86 points midday Tuesday to 19,402.18.

The Canadian dollar tailed off 0.04 cents to 77.65 cents U.S.

Energy stocks proved the strongest, as Paramount Resources powered ahead $2.39, or 7.8%, to $33.22, while Secure Energy Services gathered 43 cents, or 7.4%, to $6.23.

Real-estate concerns also moved upward, with Colliers International Group jumping $3.62, or 2.6%, to $142.79, while First Capital REIT units added 26 cents, or 1.8%, to $15.10.

Losses in gold put a brake on things, as Kinross faltered 19 cents, or 3.6%, to $5.08, while Wesdome Gold lost 47 cents, or 3.8%, to $11.97.

ON BAYSTREET

The TSX Venture Exchange slid 2.14 points to 650.22.

All but two of the 12 TSX subgroups made gains, led by energy, up 3.8%, real-estate, progressing 1.1%, and financial stocks, picking up 0.8%.

Gold lost 1%, while information technology backpedaled 0.8%, the only laggards Tuesday morning.

ON WALLSTREET

The major averages were mixed on Tuesday following a losing day as the market attempted to keep its rebound from the bear-market lows going.

The Dow Jones Industrials let go of gains and skidded 38.95 points to 31,399.31.

The S&P 500 fell 17.93 points to 3,882.18.

The NASDAQ Composite moved downward 132.63 points, or 1.2%, to 11,391.92.

Major averages cut gains after disappointing economic data. Consumer confidence index fell to a reading of 98.7, down from 103.2 in May and missing a Dow Jones estimate of 100, according to The Conference Board.

Shares of Nike edged lower in trading even after the sportswear company topped Wall Street’s earnings and sales expectations for the fiscal fourth-quarter. The company said it anticipates flat to slightly up revenue for its fiscal first-quarter versus the prior year, and low double-digit revenue for the full year on a currency-neutral basis, as it continues to manage Covid disruption in Greater China.

On Tuesday, China relaxed its COVID restrictions for inbound travelers, cutting their quarantine time upon arrival by half to seven days. That gave travel and casino stocks a lift.

Wynn Resorts and Las Vegas Sands rose more than 7% each. United jumped 6%, while American and Delta Air Lines added more than 5% each.

Disney shares also rose more than 3% after the company announced its Shanghai Disneyland will reopen this week.

Several major banks raised their dividends in response to successfully clearing this year’s Federal Reserve stress tests, including Bank of America, Morgan Stanley and Goldman Sachs.

JPMorgan and Citigroup, however, said increasingly stringent capital requirements forced them to keep their dividends unchanged.
Morgan Stanley shares gained nearly 4%.

Treasury prices faded a bit, raising yields to 3.21% from Monday’s 3.20%. Treasury prices and yields move in opposite directions.

Oil prices jumped $1.43 to $111.00 U.S. a barrel.

Gold prices faded $3.30 to $1,821.50 U.S. an ounce.