Equities begin on good footing

By Baystreet Stock Market Update

Aimia, Franco in focus Stocks in Canada’s largest market got off on the right foot Tuesday, with gains in energy, tech and health stocks blotting out losses in the energy sector.

The S&P/TSX Composite Index increased 59.64 points to begin a short week at 16,479.88

The Canadian dollar nicked up 0.08 cents at 76.97 centsU.S.

Canadian markets were closed on Monday for Civic Holiday.

Bausch Health Cos. Inc, formerly known as Valeant Pharmaceuticals, reported a bigger quarterly loss on Tuesday, due to an income tax provision and an asset impairment charge.

Bausch shares vaulted $1.47, or 5%, to $31.06.

Aimia Inc’s largest shareholder, Mittleman Brothers, said on Monday a buyout offer by an Air Canada-led consortium for Aimia’s Aeroplan loyalty program was undervalued.

Aimia stock took on 15 cents, or 3.9%, to $3.89.

Shale oil producer Continental Resources said on Monday that it formed a subsidiary to manage mineral royalties with Franco-Nevada Corp, part of Continental’s plan to diversify revenue sources.

Franco shares fell 76 cents to $94.21.

Barclays raised the price target on Canadian Tire to $194.00 from $186.00. Canadian Tire gained nine cents to $179.11.

RBC raised the target price on Dorel Industries to $30.00 from $29.00. Dorel shares gained 29 cents, or 1.2%, to $25.01.

Desjardins cut the price target on Golden Star Resources to $1.60 from $1.65. Golden Star shares acquired two cents, or 2.2%, to 94 cents.

On things macroeconomic, Western University’s IVEY School of Business reported its Purchasing Managers Index came in for July at 61.8, down from June’s reading of 63.1, and July 2017’s level of 60

ON BAYSTREET

The TSX Venture Exchange gained 0.58 points to 702.63

The 12 subgroups were evenly divided, as energy shares picked up 1.1%, information technology gathered 0.7%, and health-care shares gained 0.6%.

The half-dozen laggards were led by gold, sliding 0.6%, telecoms, off 0.2%, and real-estate dipped 0.1%.

ON WALLSTREET

Stocks rose on Tuesday as the S&P 500 moved closer to a record high set earlier this year, boosted by strong corporate earnings that offset worries around global trade.

The Dow Jones Industrial Average grew 154.67 points to 25,656.85, as Caterpillar climbed more than 1%.

The S&P 500 picked up 10.45 points to 2,860.85, with energy and financials outperforming.

The NASDAQ tacked on 24.89 points to 7,883.97, as Facebook, Netflix and Alphabet all rose at least 1%.

Through Monday’s close, the S&P 500 was just 0.8% away from reaching an all-time high of 2,872.87, set on Jan. 26. The NASDAQ was also within 1% of a record high, while the Dow was more than 4.2% away from reaching an all-time high.

Stocks’ move overseas comes as a stronger-than-expected earnings season has offset concerns over global trade. In all, 80% of the S&P 500 companies that have reported quarterly results through Friday have posted better-than-expected earnings, on pace to be the highest beat rate since the metric was first tracked in 2008.

Through Friday, S&P 500 earnings are up 24% in the second quarter on a year-over-year basis. Some of the companies that have reported better-than-expected earnings include Apple and Amazon. Dow-component Disney and is scheduled to report earnings after the close. Disney shares rose 1.5%.

Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, ranging from 5% to 25%; just days after the U.S. administration revealed that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25% from 10%.

Chinese state media claimed in editorials over recent days that the Asian nation and its counter-response to America has been “restrained” and “rational,” in light of the levies that have been threatened. China’s state media also said late Monday that they “will not surrender” to “U.S. trade blackmail.”

Prices for the benchmark for the 10-year U.S.Treasury dropped, raising yields to 2.97% from Monday’s 2.95%. Treasury prices and yields move in opposite directions

Oil prices put back 44 cents to $69.45U.S. a barrel.

Gold prices gained $2.70 to $1,220.40U.S. an ounce.

This article provided by NewsEdge.