Canada's TSX opened higher on Wednesday as investors cheered stronger-than-expected earnings from Royal Bank of Canada and National Bank of Canada.
The TSX recovered 128.87 points to wind up Tuesday at 31,178.15.
The Canadian dollar inched higher 0.11 cents to 71.69 cents U.S.
Royal Bank of Canada reported a rise in fourth-quarter profit, as the lender was helped by strength in its capital markets segment. Canada’s biggest bank rose in price $1.40, or $217.61.
National Bank of Canada also reported a rise in fourth-quarter profit, helped by a robust performance in its wealth management segments. National shares rocketed $4.12, or 2.4%, to $175.24.
In other corporate news, Manulife Financial announced the pricing of $1 billion senior notes due 2035. Manulife shares nudged upward seven cents to $48.97.
ON BAYSTREET
The TSX Venture Exchanged regained 4.56 points to 940.89.
Eight of the 12 TSX subgroups made gains in the first hour, led by materials, sailing 1.5%, gold, brighter 1.2%, and telecoms, up 0.9%.
The four laggards were weighed most by information technology, down 0.8%, consumer staples, off 0.3%, and health-care, lower 0.1%.
ON WALLSTREET
Stocks pulled back on Wednesday, bogged down by Microsoft, as traders contemplated the U.S. economic outlook.
The Dow Jones Industrials gained 38.31 points to commence the mid-week session at 47,512,77.
The S&P 500 Index docked 9.34 points to 6,820.03.
The NASDAQ sank 86.7 points to 23,326.97.
Shares in “Mr. Softee” fell after The Information reported it was cutting software sales quotas tied to artificial intelligence. The stock was last down 2%.
Other names linked to the AI trade, including chipmakers Nvidia and Broadcom, fell in sympathy with Microsoft. Nvidia was down almost 1%, while Broadcom retreated more than 2%.
Shares of Marvell Technology also saw a boost, rising more than 6%, as Wall Street reacted to its data center growth projections. American Eagle Outfitters was another standout, rallying more than 15% after the retailer lifted its full-year forecast and said the holiday shopping season was off to strong start.
Stock losses were mitigated, however, after payrolls processor ADP reported that private payrolls surprisingly declined by 32,000 in November. Economists polled by Dow Jones had expected an increase of 40,000 for the month.
Despite the tough reading on the economy, traders were likely betting that the private job losses could clinch a Federal Reserve rate cut at its last meeting of the year next week.
Traders are optimistic about corporate earnings results and are looking ahead to the Fed’s interest rate decision on Dec. 10. Markets are pricing a roughly 89% chance of a cut during the upcoming meeting, which is much higher than the odds from mid-November.
The 10-year Treasury gained, lowering yields to 4.06% from Tuesday’s 4.09%. Treasury prices and yields move in opposite directions.
Oil prices were stronger 51 cents to $59.15.
Gold prices moved upward $35.60 to $4,256.40.
