Sales data propels gains
North American markets rose Tuesday on surprise news that Chinese spending increased 0.5% year-over-year in August. The modest increase is significant because it is the first retail sales rise in China for 2020. Sales in the first eight months were 8.6% compared to a year ago. The Nasdaq climbed 1.21%, the S&P rose 0.52%, though the Dow was flat.
Tech names gained, such as Netflix at 4.14%, though financials and industrials were the weakest components on the Dow. JPMorgan fell 3.11% and Caterpillar slid 3.2%. Gold was flat, though the price of WTI and WCS each climbed by a dollar.
Positive news helped push the TSX up 0.43%, led by real estate and telcos. Canadian factory sales rose for a third straight month, based on a 7% rise in from June to July. By the afternoon, Washington was pulling 10% tariffs on aluminum against its traditional ally, Canada, and in turn Ottawa did not impose retaliatory measures. The surprise decision comes on the heels of the WTO ruling that Trump‘s tariffs against China were illegal. In Toronto, energy showed weakness again, but only -0.39%. Oil names were among the most heavily traded with Suncor slipping 1.12%, but Whitecap Resources rallying 4.1%. Meanwhile, green energy and utilities enjoyed healthy gains. Ballard Power, a volatile name, bounced 5.62% while Northland Power surged 5.22%.