S&P/TSX composite up more than 175 points, US markets also up on Tuesday

Canada’s main stock index closed up more than 175 points, along with gains in US markets, ahead of Canadian inflation data due to be released on Wednesday.

S&P /TSX The composite index rose 177.16 points at 18,798.18.

In New York, the Dow Jones Industrial Average rose 337.98 points to 30,523.80. The S&P 500 index rose 42.03 points to 3,719.98, while the Nasdaq composite added 96.60 points to 10,772.40.

John Zechner, president and chief equity officer at J Zechner Associates, said Tuesday’s small rally was like a deja vu, as the market has been up and down on a daily basis for weeks now.

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S&P/TSX composite up nearly 300 points, US market also up

Early earnings reports from U.S. banks, especially Bank of America, don’t seem to be as bad as some expected, Zechner said.

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“And then you are so oversold that you get these relief rallies,” he said.

Also, the bad news seems to have less impact these days, he said, taking Thursday’s inflation data in the US as an example.

“I think it’s safer to be in the water at this point,” he said. “You took a lot of risk out of the market.”

This could signal that the market is nearing a bottom, he said.

“I think the volatility continues. But I think there’s probably a point where there’s going to be an upward trend, especially into the fourth quarter,” he said. “Q4 always tends to be the strongest quarter of the year.”

Even the promise of a recession at least is no longer a surprise but a relative certainty, Zechner said.

“To bring down inflation, they have to slow down the economy. It’s inevitable that it will start to happen at some point. “

On Wednesday, Statistics Canada will release its own inflation data, providing investors with insight into whether a rate hike will affect prices ahead of its rate decision. Bank of Canada next week or not.

The Canadian dollar traded for 72.70 US cents, compared with 72.83 US cents on Monday.

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This earnings season will give investors a better idea of ​​what’s coming, he said, as big US tech companies offer a look at how the recession is bottoming next week. any.

“I think next week is going to be a pretty big test for the market in terms of earnings, more than we’ve seen so far,” he said.

The December crude contract was down $2.46 at $82.07 a barrel and the November natural gas contract was down 25.4 cents at $5.75/mmBTU.

The gold contract for December delivery fell $8.20 to $1,655.80 an ounce and the December contract was down 5.4 cents at $3.36 a pound.

& copy 2022 Canadian Press


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