Stock market update: Gains in Canada, U.S.

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TORONTO –


Canada’s primary stock index closed up greater than 175 factors, alongside good points in the U.S. markets, forward of Canadian inflation information due out on Wednesday.


The S&P/TSX composite index was up 177.16 factors at 18,798.18.


In New York, the Dow Jones industrial common was up 337.98 factors at 30,523.80. The S&P 500 index was up 42.03 factors at 3,719.98, whereas the Nasdaq composite was up 96.60 factors at 10,772.40.


John Zechner, chairman and lead fairness supervisor at J Zechner Associates, mentioned Tuesday’s small rally looks like deja vu, because the markets have been up and down every day for weeks now.


Early earnings experiences from the U.S. banks, particularly the Bank of America, appear to indicate that issues aren’t as unhealthy as some anticipated, mentioned Zechner.


“And then you definitely’re so oversold that you just get these aid rallies,” he mentioned.


As nicely, unhealthy information appears to be having a much less dramatic impact as of late, he mentioned, giving Thursday’s inflation information in the U.S. for example.


“I believe it is safer to enter the water at this level,” he mentioned. “You’ve taken plenty of the chance out of the market.”


This might sign that the market is nearing its backside, he mentioned.


“I believe the volatility continues. But I believe there’s in all probability some extent that there will be an upward bias, notably into the fourth quarter,” he mentioned. “The fourth quarter does all the time are typically the strongest quarter of the yr.”


Even the promise of a recession is not less than not a shock, however a relative certainty, mentioned Zechner.


“In order to get inflation down, they have to sluggish the financial system down. It’s inevitable that is going to begin to occur sooner or later.”


On Wednesday, Statistics Canada will launch its personal inflation information, giving traders observation into whether or not price hikes are hitting costs but forward of the Bank of Canada’s price determination subsequent week.


The Canadian greenback traded for 72.70 cents US, in contrast with 72.83 cents US on Monday.


This earnings season will give traders a greater thought of what is coming, he mentioned, as the massive U.S. tech firms provide a glance into how the financial slowdown is hitting their backside traces subsequent week.


“I believe subsequent week is a reasonably large take a look at for the market in phrases of the earnings experiences, extra so than what we have seen to this point,” he mentioned.


The December crude contract was down US$2.46 at US$82.07 per barrel and the November pure fuel contract was down 25.4 cents at US$5.75 per mmBTU.


The December gold contract was down US$8.20 at US$1,655.80 an oz. and the December copper contract was down 5.4 cents at US$3.36 a pound.


This report by The Canadian Press was first revealed Oct. 18, 2022.

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