Canada’s main stock index opened higher on Tuesday, pulled up by communication stocks, while investor sentiment remained upbeat on reviving hopes of interest rate cuts in the year.
The TSX Composite gained 41.81 points to lead off Tuesday at 22,301.28.
The Canadian dollar slid 0.08 cents at 73.07 cents U.S.
Quarterly earnings will pick up more pace with Ballard Power Systems among others set to report their figures before the bell on Tuesday. Ballard shares gained eight cents, or 2.1%, to start the session at $3.95.
On matters economic, the IVEY PMI index hiked to 63 in April, well above the March reading of 57.5 and towering over the 56.8 figure for April 2023.
ON BAYSTREET
The TSX Venture Exchange edged up 3.2 points to 593.30.
Eight of the 12 subgroups moved ahead, led communications, up 0.4%, while financial and material stocks were each better 0.3%.
The four laggards were weighed most by energy, health-care and information technology, each falling 0.2%.
ON WALLSTREET
Stocks rose Tuesday, lifted in part by declining Treasury yields, as traders looked for more clues on when the Federal Reserve may start cutting rates.
The Dow Jones Industrials jumped 116.47 points to begin Tuesday at 38,968.74.
The S&P 500 added 10.15 points to 5,190.89.
The NASDAQ inched up 6.57 points to 16,355.82.
Disney shares fell more than 8% after the media and entertainment giant posted a slight revenue miss but exceeded quarterly earnings expectations. Shares of defense-technology firm Palantir plunged roughly 12% on weaker-than-expected guidance. Peloton’s stock price jumped more than 16.5% on news that private equity firms have been considering a buyout of the fitness company
Wall Street is coming off a winning session, with investors riding the momentum seen late last week after fresh U.S. jobs data alleviated concerns that the economy was too hot and Fed Chairman Jerome Powell ruled out an interest rate hike as the central bank’s next move.
To be sure, other conflicting economic data — such as an uptick in the employment cost index — indicate there are still questions surrounding the actual trajectory of inflation.
Prices for the 10-year Treasury jumped, lowering yields to 4.44% from Monday’s 4.49%. Treasury prices and yields move in opposite directions.
Oil prices removed 55 cents to $77.93 U.S. a barrel.
Gold prices docked $2.10 to $2,329.10.
