Canada’s main stock index extended its winning streak for the fifth-straight day on Wednesday as worries of tightening U.S. credit conditions further dissipated, while retailer Loblaw slipped after reporting quarterly results.
The TSX Composite moved higher 85.84 points to move into noon hour EST Wednesday at 20,109.57.
The Canadian dollar inched up 0.23 cents at 73.22 cents U.S.
Loblaw reversed from early gains and slid 1.1% even though the food and pharmacy retailer beat third-quarter profit estimates on steady demand for essentials amid surging food prices in the country.
Among other movers, Lithium Americas added 4.6% after brokerage National Bank Of Canada initiated coverage on the miner with an “Outperform” rating and a price target of C$16. Specialty food manufacturer Premium Brands Holdings added 1.5% after brokerage Stifel raised its rating on the stock to “buy”.
Statistics Canada reported wholesale trade, rose 0.4% to $83.1 billion in September, while and manufacturing sales increased for the third consecutive month, up 0.4% in September mainly on higher sales of petroleum and coal. Excluding this subsector, manufacturing sales declined 0.4%.
The Canadian Real Estate Association reported national home sales fell 5.6% month-over-month in October. Actual (not seasonally adjusted) monthly activity came in 0.9% above October 2022.
The TSX Venture Exchange climbed 4.95 points, or 1%, to 521.90.
Eight of the 12 TSX subgroups gained ground Wednesday, led by health-care, up 3.2%, information technology, surging 2.1%, and utilities, growing 1%.
The three laggards were weighed most by consumer staples, sagging 2%, gold off 0.8%, and materials, off 0.2%.
Stocks rose Wednesday, building on the strong rally from the previous session, on the back of more encouraging inflation data.
The Dow Jones Industrials took on 100.79 points to break for lunch at 34,928.49.
The S&P 50 index gained 9.55 points to 4,505.69.
The NASDAQ advanced 27.83 points to 14,122.21.
In corporate news, Target popped 17% on better-than-expected results for the third quarter. Shares of apparel company VF added nearly 15% following a JPMorgan upgrade to neutral from underweight.
These gains came after October’s consumer price index, a key inflation metric, came in lower than the 0.1% increase economists surveyed by Dow Jones had expected. Instead, the CPI came in flat on a monthly basis. Investors celebrated the news, sending stocks soaring on the hopes that the Federal Reserve could finally put an end to its rate-hiking campaign.
October’s producer price index, which measures wholesale prices, fell by 0.5% to mark its biggest monthly drop since April 2020. Not all of the economic data was positive, however, since retail sales also declined.
Prices for the 10-year Treasury fell, raising yields to 4.55% from Tuesday’s 4.45%. Treasury prices and yields move in opposite directions.
Oil prices backpedaled $1.26 to $77.00 U.S. a barrel.
Gold prices slumped $2.30 to $1,964.20.