TSX Enjoys Triple-Digit Gains

Toronto stocks rose on Wednesday, led by gains in materials and technology shares, while investors assessed Canadian retail sales data for more clues on the Bank of Canada's interest rate path.

The TSX recovered 152.7 points to progress toward noon hour at 19,838.21.

The Canadian dollar slid 0.05 cents to 73.75 cents U.S.

Canada's big bank results are expected to highlight the challenges lenders are facing in setting aside more funds to cover potential bad loans in a tough economy that has led to a slowdown in deal-making and forced borrowers to rethink new mortgages.

Royal Bank of Canada and Toronto-Dominion Bank will kick off the earning season on Thursday.

RBC shares gained $1.06 late morning Wednesday to $120.77. Shares in TD captured 73 cents to $83.29.

On matters economic, June retail sales data showed 0.1% growth from the previous month, driven mainly by car sales, a sign of weak consumer spending that could convince the central bank that interest rate hikes are sinking in.

Economists polled by Reuters had forecast June sales to be flat.

ON BAYSTREET

The TSX Venture Exchange regained 6.08 points, or 1%, to 588.32.

All but one of the 12 TSX subgroups climbed the charts by lunch hour, led by gold, up 2.6%, information technology, better by 2%, and materials, stronger 1.7%.

Only energy faltered, and only 0.5% at that.

ON WALLSTREET

Stocks climbed Wednesday as Wall Street awaited the latest quarterly figures from Nvidia, the high-flying chipmaker that’s been bolstered by the artificial intelligence craze on Wall Street.

The Dow Jones Industrials zoomed 157.23 points to break for lunch Wednesday at 34,446.66.

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The S&P 500 index captured 41.75 points, or 1%, to 4,429.30.

The tech-heavy NASDAQ index surged 202.65 points, or 1.5%, to 13,708.83.

Nvidia is slated to report second-quarter earnings after the bell. Analysts polled by Refinitiv expect the company to report sharp year-over-year spikes in profit and revenue for the second quarter. Nvidia is the best-performing S&P 500 stock of 2023, up more than 200%, as investors cheer the company’s AI-related prospects.

Investors will look to the report for signs on whether the market can resume this year’s move higher, or if the August downturn will be prolonged. Shares rose slightly on Wednesday ahead of the release.

Major athletic goods retailers saw their shares drop on Wednesday.

Nike fell for a tenth straight day, its longest slide on record, losing 3%. Foot Locker shares plunged 34% after reporting shrinking sales and lowering its forecast for the second time this year. Those moves come a day after Dick’s Sporting Goods suffered its worst day ever.

Meanwhile, lifestyle apparel retailer Abercrombie & Fitch shares popped nearly 19% after flying past earnings and sales expectations for the quarter.

Beyond the earnings slated for Wednesday, investors will also be watching for economic data on new home sales and purchasing. They’ll also be readying for the start of a two-day Federal Reserve symposium in Jackson Hole, Wyoming, beginning Thursday. Fed Chair Jerome Powell is expected to deliver remarks Friday.

Prices for the 10-year Treasury hiked, reducing yields to 4.23% from Tuesday’s 4.33%. Treasury prices and yields move in opposite directions.

Oil prices fell 67 cents to $78.97 U.S. a barrel.

Gold prices climbed $19.70 to $1,945.70 U.S. an ounce.