Equities in Toronto rose for a third straight session on Wednesday, led by gains in consumer discretionary shares, while the U.S. consumer prices data for August cemented bets on a rate pause by the U.S. Federal Reserve in its September meeting.
The TSX climbed 66.09 points to stop for lunch Wednesday at 20,289.17.
The Canadian dollar picked up 0.12 cents at 73.90 cents U.S.
Consumer discretionary shares strengthened, driven by Dollarama’s upbeat results. The discount retailer raised annual sales forecast after topping quarterly sales estimates, pushing its stock $3.64, or 4.1%, higher to $93.00.
Food and general products retailer, North West Company rose $4.26, or 14.1%, to $34.48 after strong Q2 results, helping the consumer staples index gain 0.7%.
Tilray recovered from an earlier slump, picking up four cents, or 1%, to $3.96.
The TSX Venture Exchange recovered 7.46 points, or 1.3%, to 584.25.
Seven of the 12 TSX subgroups had changed direction and moved higher midday, led by consumer discretionary stocks, up 1.2%, consumer staples, surging 0.9%, and real-estate, better by 0.8%.
The five laggards were weighed most by energy, down 0.7%, while gold and materials, each faded 0.6%.
Stocks rose Wednesday as traders absorbed a hotter-than-expected August core inflation print.
The Dow Jones Industrials recovered 61.59 points to reach noon at 34,707.58.
The S&P 500 index regained 12.81 points to 4,474.91.
The NASDAQ index moved positive 59.23 points to 13,832.85.
Tesla shares gained 1.8% after billionaire investor Ron Baron stood by his bullish thesis on the electric vehicle maker. Other mega-cap tech stocks rose, with shares of Amazon advancing 2%. Microsoft and Meta Platforms shares added more than 1% each.
August’s core inflation print in the consumer price index increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Federal Reserve officials focus more on the core number as it provides a better indication of where inflation is heading over the long term.
Meanwhile, the headline numbers rose 0.6% last month, and were up 3.7% from a year ago. Economists surveyed by Dow Jones were looking for respective increases of 0.6% and 3.6%.
Prices for the 10-year Treasury regained former strength, lowering yields to 4.25% from Tuesday’s 4.27%. Treasury prices and yields move in opposite directions.
Oil prices nosed higher seven cents to $88.91 U.S. a barrel.
Gold prices faded three dollars to $1,932.10 U.S. an ounce.