Toronto up, New York down amid earnings Tuesday
The TSX gained 1% during Tuesday’s session led by the energy sector, which popped 4.51% and telcos which gained 1.19%. Commodities enjoyed a strong Tuesday with Teck Resources soaring over 13%, Vermillion Energy jumping 9.75%, Western Forest Products leaping 14.67% and West Fraser Timber vaulting 13.76%. Since the March 23 bottom, the TSX has rallied over 31%, despite the oil crisis which still threatens this sector. On Tuesday, a barrel of WCS actually tumbled 22% to $5 though WTI edged down slightly.
Earnings reports included a nice surprise from Pepsi, which reported a Q1 driven not purely by its beverage, but rather its snacks sales as consumers are hunkering down at home with the munchies. Pepsi popped 1.38%. In contrast, Caterpillar‘s Q1 fizzled due to a 21% decline in heavy equipment sales during this pandemic.
Despite that, Caterpillar modestly gained 0.23%. After hours, Google/Alphabet reported that it topped Q1 revenue. Google lost 3.31% on Tuesday, but regained it after the closing bell. New York indices actually headed south Tuesday, with the Nasdaq closing -1.4%, though the Dow suffered only a -0.13% decline. The mood on markets remains generally upbeat as talk continues of reopening various economies around the world.