Canadian Stocks Rise on Earnings and Economic Data

Strategic Insights -

Canadian stocks gained for a second day, as U.S. consumer confidence and home prices rose more than forecast, and companies such as Apple Inc. reported earnings that beat analyst estimates. The rally was led by financial shares, including Royal Bank of Canada, which added 1.6 percent, and Potash Corp. of Saskatchewan Inc., which increased 2.2 percent after a Macquarie Group Ltd. analyst called the outlook for fertilizer producers compelling.

Key Takeaways:

  • Canadian stocks rose for a second day, with the S&P/TSX Composite Index climbing 54.61 points, or 0.5 percent, to 11,409.12.
  • Financial shares advanced 1.6 percent, with Royal Bank of Canada leading the gain.
  • Potash Corp. of Saskatchewan Inc. increased 2.2 percent after a Macquarie Group Ltd. analyst called the outlook for fertilizer producers compelling.
  • Seventeen of 23 gold companies gained, with Barrick Gold Corp. increasing 1.5 percent as gold-mining companies climbed.
  • The U.S. Conference Board's confidence index rose to 55.9 from 53.6 in December, surpassing the median forecast of economists.
  • The S&P/Case-Shiller home-price index increased 0.2 percent in November for its sixth-straight gain, showing that U.S. real estate is stabilizing.
  • Canada's six largest banks all gained, with Royal Bank advancing for the first time in four days.
  • Bank of Nova Scotia, Bank of Montreal, and Potash Corp. also reported gains, with Bank of Montreal climbing 1.7 percent to C$53.53.

Statistics:

  • The S&P/TSX Composite Index climbed 54.61 points, or 0.5 percent, to 11,409.12 at 2:30 p.m. in Toronto.
  • Seventeen of 23 gold companies gained, with Barrick Gold Corp. increasing 1.5 percent.
  • The U.S. Conference Board's confidence index rose to 55.9 from 53.6 in December.
  • The S&P/Case-Shiller home-price index increased 0.2 percent in November for its sixth-straight gain.
  • Canada's six largest banks all gained, with Royal Bank of Canada advancing 1.6 percent.
  • Royal Bank of Canada's stock price advanced to C$53.56.
  • Potash Corp. of Saskatchewan Inc. increased 2.2 percent to C$118.63.

Sources:

  • Bloomberg survey of economists
  • Statistics Canada
  • Euclid Infotech Pvt. Ltd.
  • Macquarie Group Ltd.