Stocks Recover Wednesday
The TSX Composite climbed 53.7 points in the first hour on Wednesday at 19,422.39.
The Canadian dollar lost 0.14 cents to 74.67 cents U.S.
Teck Resources fell $2.01, or 4.7%, to $41.19 on reporting a plant outage at its Elkview steelmaking coal operation in southeastern B.C., and saying initial estimates are that production will be interrupted for one to two months as repairs are implemented.
ON BAYSTREET
The TSX Venture Exchange dipped 1.18 points to 615.54.
All but three of the 12 TSX subgroups were gainers in the first hour, with real-estate soaring 1%, while utilities and energy each gathered 0.9%.
The three laggards were materials, down 0.4%, health-care, sliding 0.3%, and gold, slightly dimmer, 0.03%.
ON WALLSTREET
Stocks rose Wednesday as investors awaited another likely interest rate hike from the Federal Reserve as it fights to tame surging inflation.
The Dow Jones Industrials regained 183.9 points to open the mid-week session at 30,890.13.
The S&P 500 moved higher 23.37 points to 3,879.30.
The NASDAQ Composite surged 41.67 points to 11,466.72.
The central bank on Wednesday is expected to deliver its third consecutive 0.75-percentage-point rate hike. A higher-than-expected consumer price index reading in August and hawkish comments on rate hikes from Fed leaders have weighed on stocks, with more pressure likely ahead as the central bank continues its battle.
Investors will be monitoring the central bank’s longer-term projections, paying close attention to the terminal fed funds’ rate last projected in June to hit 3.8% in 2023. Some economists, however, expect the Fed to raise that forecast above 4%.
General Mills’ stock gained more than 4% as it upped its full-year outlook. Defense stocks and oil also jumped as Russian President Vladimir Putin called for a partial military mobilization.
On the earnings front, results from Lennar, KB Homes, and Steelcase are slated for release Wednesday. Existing home sales data is also due out Wednesday morning.
Treasury prices inched upward, lowering yields to 3.54% from Tuesday’s 3.56%. Treasury prices and yields move in opposite direction.
Oil prices handed back 27 cents to $83.67 U.S. a barrel.
Gold prices resurfaced $9.10 to $1,680.20 U.S. an ounce.
Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.
