On a generally happy day for the markets, which saw the Dow increase for the 20th consecutive Tuesday (second longest day of the week streak ever – 24 Wednesdays in a row in 1968 is the record), it was Canada’s banks and energy companies that helped push the S&P/TSX Composite higher.
Shares of Royal Bank of Canada (TSX:RY) and TD Bank (TSX:TD) were the biggest contributors to today’s +54 point move by the TSX, even though Scotia offered up earnings that were lower than expected.
Royal and TD shares were up 1.3% and 1.0% respectively, buoyed by the strong move higher in the U.S., which came on the back of a Consumer Confidence report that handily blew away expectations.
Also benefitting from the strong data point out of the U.S. was the Energy sector, with Suncor (TSX:SU) and Cenovus (TSX:CVE) climbing 1.6% and 2.8% each. The price of WTI Oil increased by close to 1% to finish the day north of US$95.
Gold stocks didn’t take kindly to today’s upward momentum. Goldcorp (TSX:G) and its decline of 1.2% acted as the biggest drag on today’s Canadian market. The spot price of gold was down close to 1%, and closed at US$1,381.08.
Foolish Takeaway
Once again financials and resource stocks dictated the Canadian market’s performance. Because of their heavy-weights in the TSX, these stocks can be lethal for investors that think they are protected with an index fund or ETF linked to the S&P/TSX Composite Index.
We have prepared a Special FREE Report that will clue you into the perils of passively investing in this kind of product and suggests an easy to implement alternative strategy. It’s called “5 Stocks That Should Replace Your Canadian Index Fund” and you can receive a copy at no charge – just by clicking here.
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Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp and owns shares in Cenovus. The Motley Fool doesn’t own shares in any of the companies mentioned.
