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At midday: TSX advances as Bombardier leaps on Airbus deal

Traders work on the floor of the New York Stock Exchange (NYSE) on Oct. 17.

Brendan McDermid/Reuters

Canada's main stock index rose on Tuesday, led by a more than 20-per-cent surge in Bombardier Inc shares and higher financial stocks.

Bombardier was up 19.9 per cent to $2.83 after soaring as much as 26.4 per cent following a major deal with Airbus SE .

The Canadian plane and train maker said it would sell a majority stake in its CSeries jetliner program to the European company, a move that helps secure the CSeries' future and solves a number of issues for Bombardier, including a dispute with Boeing Co.

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The overall industrials group rose 0.8 per cent.

Financial stocks, which make up about a third of the index's weight, dropped 0.1 per cent. Royal Bank of Canada was the second biggest driver of the index's gains and was up 0.6 per cent to $99.87. Thomson Reuters was another top gainer, rallying 2.2 per cent to $60.52.

At 11:20 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index rose 20.64 points, or 0.13 per cent, to 15,823.34. Four out of the index's 10 main groups advanced.

Oil and gas companies retreated 0.6 per cent alongside crude prices.

Capping gains was a 0.5-per-cent loss by the materials group, home to mining and other resource firms, as base and precious metal prices fell on a stronger U.S. dollar.

Teck Resources fell 2.1 per cent to $28.23 while First Quantum Minerals Ltd slid 3.4 per cent to $15.30. Potash Corp was down 1.2 per cent to $24.02.

Aphria Inc shares tumbled 11.1 per cent to $7.04 after the operator of the Toronto Stock Exchange said that cannabis companies with U.S. interests would come under heightened scrutiny and could be delisted.

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The Dow Jones Industrial Average breached the 23,000 mark for the first time on Tuesday led by more than 5-per-cent gain in UnitedHealth.

The broader market however was weighed down by losses in industrial, financial and technology stocks.

Shares of the largest U.S. health insurer touched a record high after the company reported a stronger-than-expected profit and raised its full-year earnings forecast.

That, along with a 2.4-per-cent rise in Johnson & Johnson , led a 0.92-per-cent gain in the S&P healthcare sector .

Goldman Sachs dipped 1 per cent despite reporting a profit beat and smaller-than-expected trading revenue fall. Morgan Stanley rose 1.4 percent as wealth management business insulated the bank from weakness in trading revenue.

"There was some good earnings, real good economic data in spite of the hurricanes," said Peter Cardillo, chief market economist at First Standard Financial in New York.

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"We're not seeing a market that's galloping along here. The market from a technical perspective is tired. What you're seeing is some hesitancy but not any major declines."

U.S. Treasury yields rose after strongest reading on import prices in more than a year pushed inflation expectations higher.

Also supporting the yields was a report that U.S. President Donald Trump was impressed by his meeting with economist John Taylor, who is considered to favor higher interest rates than current Federal Reserve Chair Janet Yellen.

The Dow Jones Industrial Average was up 40.93 points, or 0.18 per cent, at 22,997.89, the S&P 500 was up 0.4 points, or 0.015639 per cent, at 2,558.04 and the Nasdaq Composite was up 2.90 points, or 0.04 per cent, at 6,626.90.

General Electric's 1.15-per-cent fall led losses in the industrial sector, while drop in shares of Microsoft and Intel weighed on the tech sector.

Seven of the 11 major S&P indexes were lower, led by a 0.39-per-cent drop in industrials and material index .

Netflix slipped 1.15 per cent after touching a record high as more subscribers signed up for its popular original content in the latest quarter.

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