Equities in Toronto opened higher on Wednesday, lifted by mining and technology shares, while an in-line U.S. inflation reading kept investors leaning toward a Federal Reserve rate hold in September.
The TSX continued its march, gaining 17.59 points to conclude Tuesday afternoon at 36,475.92.
The Canadian dollar inched up 0.06 cents at 71.90 cents U.S.
In earnings reported late on Tuesday, Constellation Software posted a rise in second-quarter net income, while gold royalty firm Franco-Nevada missed quarterly earnings estimates.
Air Canada restored its annual core profit target, but at a lower level from its previously suspended outlook.
Markets also digested quarterly results from Metro and Hydro One, among others.
On the economic slate, Statistics Canada reported building permits rebounded by $2.3 billion (+18.5%) to reach $14.9 billion, more than offsetting the monthly declines recorded in April (-$536.7 million) and May (-$383.3 million).
Separately, Federal Trade Minister Dominic LeBlanc, met with U.S. trade officials on Tuesday, marking his third meeting in as many weeks to try to avert looming tariffs on August 19.
ON BAYSTREET
The TSX Venture Exchange eased back 7.23 points to 966.58.
All but three of the 12 TSX subgroups moved forward, with utilities ahead 2%, telecoms better by 1.7%, and health-care up 0.9%.
The three laggards were weighed by information technology, sinking 1.2%, while gold and consumer staples each shed 0.2%.
ON WALLSTREET
The S&P 500 rose on Wednesday on the back of a tame U.S. inflation report and tech gains led by artificial intelligence plays CoreWeave and Super Micro Computer.
The Dow Jones Industrials restocked 32 points to kick off Wednesday at 53,823.85.
The much-broader index revived 19.68 points to 7,747.88.
The NASDAQ Composite regrouped 148.17 points to 26,593.61.
Meanwhile, the latest quarterly results and guidance from CoreWeave and Super Micro Computer reassured investors that demand in the artificial intelligence buildout is stable. CoreWeave shares jumped 18% after the cloud infrastructure mainstay’s second-quarter adjusted operating income margin of 5% exceeded expectations, while its revenue doubled from a year ago. Super Micro Computer added 13% following a strong earnings and revenue forecast for the first quarter.
Other stocks related to AI also gained. Dell Technologies and Micron Technology advanced more than 4% and 6%, respectively, while Cisco Systems rose more than 2%. Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 16%.
Other stocks related to AI also gained. Dell Technologies and Micron Technology advanced more than 4% and 6%, respectively, while Cisco Systems rose more than 2%. Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 16%.
July’s consumer price index came in as expected, with headline rising 0.1% on the month and the annual inflation rate landing at 3.4%. Core CPI, which excludes food and energy, advanced 0.2% last month and 2.5% on the year. The annual rate for both headline and core CPI marked a slight decrease from June.
This comes as the Federal Reserve has been laser focused on the impact higher pricing pressures are having on the U.S. consumer, with three dissenters at the last meeting voting to raise rates. Those concerns have yet to abate, with U.S. oil prices pushing above $83 a barrel Wednesday, as hopes of a reopening of the Strait of Hormuz dwindle.
Prices for the 10-year Treasury showed strength, dropping yields to 4.66% from Tuesday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices slumped 43 cents to $82.77 U.S. a barrel.
Gold prices gained $52.50 to $4,493.40 U.S. an ounce.
