TSX makes record high, but Wall St. mixed before trade deal
The TSX finished strong on Tuesday, closing up 0.34% to a new record high. Buying was especially robust in the last hour of trading, with materials, industrials and consumer staples leading the way. Nine of 11 sectors were in the green. Even oil stocks outpaced a modest increase in crude. Wesdome Gold was one of the strongest performers, rallying nearly 6%. Weed stocks rallied, with Canntrust rising 5.8%, though Aphria slid 8.59% after it released weak Q2 revenues and revised down its guidance, blaming the slow government roll-out of legal cannabis stores.
In contrast, the Nasdaq and S&P closed negative while the Dow barely scraped into the positive. New York indices actually broke intra-day highs, but tumbled sharply after reports appeared that American tariffs on Chinese goods won’t be removed until after the November U.S. vote.
That report appeared on the eve of the signing of phase one of the trade deal between the States and China. Meanwhile, U.S. earnings season kicked off with the banks reporting. JP Morgan and Citibank both reported positively, but Wells Fargo plunged over 5% missed profit and revenue, dragged down by litigation costs. Expect more earnings this week and, as mentioned, the trade deal signing.