TORONTO 鈥� Canada's main stock index gained more than 100 points Wednesday, led by strength in utilities and base metals, while U.S. markets also rose and the Dow Jones hit a record high.
鈥淭he everything rally is continuing,鈥� said Greg Taylor, chief investment officer at Purpose Investments.
Despite concerns about volatility heading into the fall, investors appear to have 鈥渂rushed off鈥� recent geopolitical events, Taylor said.
鈥淢arkets are doing pretty well globally, with a lot of markets hitting all-time highs.鈥�
The S&P/TSX composite index closed up 122.12 points at 24,561.20.
In New York, the Dow Jones industrial average was up 337.28 points at 43,077.70. The S&P 500 index was up 27.21 points at 5,842.47, while the Nasdaq composite was up 51.49 points at 18,367.08.
Investors are continuing in earnest their recent rotation away from concentration in technology stocks, said Taylor.
That鈥檚 particularly good news for the TSX, which has significantly less exposure to the tech sector that drove gains through the first half of the year, he said.
鈥淚t鈥檚 having a great run in the last few months,鈥� he said, adding that small-cap stocks in the U.S. have also had a good couple of days.
Several major companies in the U.S. released earnings Wednesday, with Morgan Stanley reporting stronger profits than expected. Its stock price rose 6.4 per cent.
Morgan Stanley followed other U.S. banks, which have also largely topped forecasts as they kicked off earnings season.
鈥淥n average, all of these banks are blowing away expectations. And then the stocks are reacting positively to that news,鈥� said Taylor.
鈥淚t's great to see that these banks are starting the earnings season off with a bang and some really good numbers, and that bodes well for the next few weeks as we go into the heart of earnings season,鈥� he said.
United Airlines also reported earnings that were stronger than expected and saw its stock rise 12.4 per cent.
There was some nervousness heading into earnings season, noted Taylor, with worries about demand as well as potential supply chain disruptions.
鈥淏ut so far, things are looking pretty good and that鈥檚 why we鈥檝e got markets pretty close to all-time highs.鈥�
The Canadian dollar traded for 72.62 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 19 cents at US$70.39 per barrel and the November natural gas contract was down 13 cents at US$2.37 per mmBTU.
The December gold contract was up US$12.40 at US$2,691.30 an ounce and the December copper contract was up three cents at US$4.37 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
