S&P/TSX composite up on broad strength Wednesday, U.S. markets also rise
Broad-based strength among Canadian equities led by battery metals helped lift Canada’s main stock index Wednesday, while U.S. markets also rose.
After a big-tech rally fuelled narrow gains in the first half of the year, there’s some room for the TSX to “make up” in the second half, said Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd.
“I think financials are able to weather the storm a little bit better than people have planned,” she said, noting there may also be room to the upside in the energy sector.
“I think that right now, I do see still more room to run with the TSX versus where the S&P 500 is sitting,” she said.
The S&P/TSX composite index was up 114.60 points at 20,491.17.
In New York, the Dow Jones industrial average was up 109.28 points at 35,061.21.The S&P 500 index was up 10.74 points at 4,565.72,while the Nasdaq composite was up 4.38 points at 14,358.02.
Second-quarter earnings in the U.S. have so far been beating low expectations, said Gardner, as investors increasingly see hope for a soft landing. While the markets are still pricing in a rate hike by the Federal Reserve next week, the bar is being raised a little for earnings with recent economic data showing the resilience of the economy amid higher rates, she said.
“Despite inflation, despite a little bit of a weakening consumer, there are still companies that are beating estimates,” she said.
“As we’re seeing inflation continue to come down without the big rise in unemployment than many expected, I think we’re seeing people’s views and investors’ views shift to the likelihood of (a) more resilient economy.”
However, Gardner noted there’s still concern about Canadians’ high debt levels and the consumer’s
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