Canada’s main stock index edged higher on Tuesday, supported by gains in technology and financial shares, while cautious investors sought indicators for the U.S. presidential election‘s outcome.
The TSX gained 79.98 points to move into Tuesday afternoon at 24,336/04.
The Canadian dollar edged forward 0.23 cents to 72.17 cents U.S.
Voters rushed to the polls to choose between Republican Donald Trump and Democrat Kamala Harris in a tightly contested election that could have a potential impact on the global economy.
While it could take days to declare the final winner, key focus will be on the battleground states of Georgia, North Carolina, Pennsylvania, Michigan, Arizona, Wisconsin and Nevada.
With the United States being Canada’s biggest trading partner, the election outcome could have significant impact on the Canadian economy and will be closely watched by domestic investors.
In corporate news, Sun Life reported a better-than-expected third-quarter profit as Canada’s second-largest life insurer benefited from robust growth in its domestic and U.S. businesses. Sun Life shares garnered $1.68, or 2.2%, to $79.1.
The technology sector advanced buoyed by Coveo Solutions, which gained 73 cents, or 12.3%, to $6.68, after it reported second-quarter results and annual forecast.
In contrast, real estate shares, dragged by Colliers International after it missed third-quarter profit estimates. Colliers lost $11.57, or 5.4%, to $202.13.
The consumer discretionary sector was lower as Restaurant Brands shares fell $2.56, or 2.6%, to $94.83, after the Burger King-parent missed estimates for third-quarter results.
On the economic scene, Statistics Canada reported this country’s merchandise exports decreased 0.1%, while imports fell 0.4%.
Consequently, Canada’s merchandise trade deficit with the world narrowed from $1.5 billion in August to $1.3 billion in September.
Also, minutes of the Bank of Canada’s October policy meeting, which resulted in a 50-basis-point interest-rate cut, would give more insights into the country’s policy easing cycle.
ON BAYSTREET
The TSX Venture Exchange fell 0.51 points to 602.26.
Seven of the 12 TSX subgroups were positive midday, with consumer staples and utilities each higher by 0.7%, while financials were 0.6% richer.
The five laggards were weighed most by real-estate, down 0.9%, consumer discretionary stocks, sinking 0.7%, and communications, off 0.4%.
ON WALLSTREET
The S&P 500 rose solidly on Tuesday as traders awaited the results from a high-stakes U.S. presidential election.
The Dow Jones Industrials popped 375.77 points to 42,170.37.
The much broader index jumped 64.48 points to 5,777.37.
The S&P 500 is already up more than 19% year to date, an unusually strong run up ahead of an election, and is within 3% of its record high.
The NASDAQ gathered 262.9 points, or 1.5%, to 18,442.81.
The results could have a significant effect on where stocks end the year, but investors may want to brace for some near-term choppiness.
Data going back to 1980 suggests the major averages gain between Election Day and the end of the year, but typically fall in the session and week after. Uncertainty over the results could lead to even more shakiness in the market.
No clear election bets were emerging yet in stocks on Tuesday morning. Banks, which would stand to benefit from deregulation under GOP control, were higher but dramatically outperforming the broader market.
Shares of Nvidia rose 3%, but the chipmaker and bull market stalwart would appear to be insulated regardless of election outcome. Tesla rose more than 3%, though the electric car stock could be seen as benefiting from a Democratic victory or a Republican one, given CEO Elon Musk’s close ties to Trump.
On the earnings front, Palantir popped 23% on strong quarterly results and upbeat revenue guidance, while NXP Semiconductors fell 7% on a soft outlook due to macro concerns.
Prices for the 10-year Treasury swooned, springing yields to 4.36% from Monday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.07 to $72.54 U.S. a barrel.
Prices for gold retreated $4.60 an ounce to $2.750.80 U.S.
