Canada’s main stock index was flat at midday on Tuesday as energy shares were lifted by higher oil prices.
The energy sector jumped nearly 2% after oil prices rose above $65 a barrel, supported by hopes that the U.S.-China trade deal will bolster oil demand in 2020 and the prospect of lower U.S. crude supplies.
The main index opened lower, with declines led by Canfor Corp which tumbled 21%, after it rejected Great Pacific Capital Corp’s proposal to take it private.
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Weighing on sentiment was data that showed Canadian factory sales decreased in October on lower sales in transportation equipment and fabricated metal products.
The lower activity at auto assembly plants and parts plants was due in part to the United Auto Workers strike in the United States.
The largest percentage gainers on the TSX were Whitecap Resources, which jumped 4.2% and Baytex Energy Co , which rose 4%.
The most heavily traded shares by volume were Aurora Cannabis, Touchstone Exploration and Nemaska Lithium.
Wall Street
U.S. stocks paused after a four-day rally, but still hovered around record levels on Tuesday, while a fall in Boeing’s shares weighed on the Dow as the crisis surrounding the planemaker’s 737 MAX jet deepened.
The S&P 500 edged to a record high for the fourth straight session and was set to build on its 27% gain this year, driven mainly by expectations of a U.S.-China trade deal, a dovish Federal Reserve and upbeat economic indicators.
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Reinforcing confidence in the U.S. economy, data from the Federal Reserve showed manufacturing output rose more than expected in November, as the end of a strike at General Motors plants boosted auto production.
However, a 1% fall in Boeing dragged on the Dow Jones . The company said it would suspend production of its best-selling aircraft in January in its biggest assembly-line halt in more than two decades.
The energy sector was among the biggest gainer on the S&P 500, tracking a rise in oil prices.
Gains in all three major indexes over the last three days have largely been driven by an interim U.S.-China trade agreement, which was announced on Friday.
However, with little chance of another major update on trade before the end of the year, analysts say the market will likely stay around present levels.
“U.S. stocks could start feeling trade optimism fatigue as we near the holidays,” said Edward Moya, senior market analyst at online trading broker OANDA in New York, adding that a significant pullback was unlikely.
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At 10:31 a.m. ET the Dow Jones Industrial Average was up 36.25 points, or 0.13%, at 28,272.14, the S&P 500 was up 4.31 points, or 0.14%, at 3,195.76 and the Nasdaq Composite was up 3.40 points, or 0.04%, at 8,817.63.
Netflix Inc rose 3.5% after the streaming service provider said its growth overseas is accelerating, on the back of its Asia-Pacific business.
Johnson & Johnson gained 0.9% after reports that Morgan Stanley upgraded the stock.
While there is no major economic news due this week, a historic vote in the U.S. House of Representatives, likely to result in the impeachment of President Donald Trump, poses another risk for investment decisions in the run-up to the 2020 election.
MTY Food Group Inc. says its profit and revenue both slid in its most recent quarter.
The restaurant franchisor and operator says its net income attributable to owners totalled $34.9 million in its third quarter, compared with $38.9 million a year earlier.
The results for the period ended Aug. 31 amounted to $1.46 per diluted share, down from $1.59 per diluted share a year prior.
The company behind 90 brands including Manchu Wok and Mr. Sub attributed the fall to impairment charges on property, plants and equipment along with intangibles assets.
Its revenue decreased slightly to $292.8 million in the quarter from $298 million a year ago.
While CEO Eric Lefebvre saw the quarter as a sign that the company’s ongoing restructuring is starting to bear fruits, he said the business was also hampered by significant delays in construction and permitting that resulted in fewer locations opening.
This report by The Canadian Press was first published Oct. 11, 2024.
Taiga Motors Corp. says the Superior Court of Québec has approved its sale to a British electric boat entrepreneur.
The Montreal-based maker of snowmobiles and watercraft says it will be purchased by Stewart Wilkinson.
Wilkinson’s family office is behind marine electrification brands that include Vita, Evoy, and Aqua superPower.
Wilkinson and Taiga did not reveal the terms or value of the deal but say Wilkinson will assume Taiga’s debt to Export Development Canada and has committed to funding Taiga’s business plan.
The companies say the transaction will allow them to achieve greater economies of scale and deliver high-performance products at compelling prices to accelerate the electric transition.
The sale comes months after Taiga sought bankruptcy protection under the Companies’ Creditors Arrangement Act to cope with a cash crunch.
This report by The Canadian Press was first published Oct. 11, 2024.
Toronto-Dominion Bank is facing fines totalling about US$3.09 billion from U.S. regulators in connection with failures of its anti-money laundering safeguards.
The bank also received a cease-and-desist order and non-financial sanctions from the Office of the Comptroller of the Currency that put limits on its growth in the U.S. after it was found that TD had “significant, systemic breakdowns in its transaction monitoring program.”
