TSX Moves Toward More All-Time Highs

Canada's main stock index scaled another record peak on Tuesday as a banks rally on prospects of higher interest rates cushioned weakness in commodity-linked sectors.

The S&P/TSX Composite Index grabbed another 76.14 points, to begin Tuesday’s trading at 22,085.27, yet another all-time high for the index.

The Canadian dollar retreated 0.14 cents to 79.29 cents U.S.

Air Canada rose 69 cents, or 2.9%, to $24.23, after saying it would add 26 extra-long-range versions of the Airbus A321neo aircraft to its fleet.

Health-care stocks proved the champion by lunch hour, mostly Aurora Cannabis, soaring 25 cents, or 5.7%, to $4.62, while rival Cronos Group picked up 21 cents, or 4.7%, to $4.69.

In the tech field, Quarterhill Inc. leaped 35 cents, or 16.7%, to $2.45, while Lightspeed POS jumped $3.31, or 9%, to $40.25.

Gold and other metals did not fare so well, as New Gold shed eight cents, or 3.4%, to $2.25, and Silvercrest Metals dumped 42 cents, or 3.5%, to $11.71.

On the macroeconomic calendar, Statistics Canada reported its raw materials price index rose 6.0% month over month in February and 29.8% year over year.

The agency’s industrial product price index rose 3.1% month over month in February and 16.4% year over year.

ON BAYSTREET
The TSX Venture Exchange added 6.32 points to 870.34.

Seven of the 12 TSX subgroups were positive midday Tuesday, with health-care up 3.1%, information technology, better by 2.7%, and real-estate ahead 1.2%.

The five laggards were weighed most by gold, dulling in prices 1.7%, materials, down 1.3%, and energy, 1.2% less energetic.

ON WALLSTREET

U.S. stocks rebounded Tuesday as traders digested Federal Reserve Chair Jerome Powell’s latest rate hike comments.

The Dow Jones Industrials came off its highs of the morning, but still gained 216.66 points to 34,769.65, led by Nike’s post-earnings report gain.

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The S&P 500 sprinted 45.21 points, or 1%, to 4,506.39

The NASDAQ Composite advanced 254.62 points, or 1.8%, to 14,093.08.

Stocks are coming off a volatile session Monday, as Powell said “inflation is much too high” and vowed to take “necessary steps” to curb inflation. The comments came less than a week after the Fed raised rates for the first time since 2018.

Some market participants raised their expectations for rate hikes following Powell’s comments. Goldman Sachs on Monday upped its forecast to 50 basis point hikes at the May and June Fed meetings.

Bank stocks rose Tuesday along with interest rates. Financials comprised the top-performing S&P 500 sector. JPMorgan gained more than 2%, and Bank of America rose around 3%.

Technology stocks, which struggled Monday after Powell’s comments, rebounded Tuesday. Big Tech names Alphabet, Meta and Amazon all gained more than 1%, providing support to the indexes.

Nike shares moved up more than 4% after the retailer reported a beat on the top and bottom lines for its fiscal third quarter, buoyed by strong demand in North America.

Investors on Tuesday continued to watch the situation in Eastern Europe, with President Joe Biden saying Russian President Vladimir Putin’s back is “against the wall” as the war with Ukraine nears a stalemate.

Treasury prices slumped, raising yields to 2.37% from Monday’s 2.30%. Treasury prices and yields move in opposite directions.

Oil prices fell $1.91 to $110.21 U.S. a barrel.

Gold prices dropped $14.20 to $1,913.20 U.S. an ounce.