Royal Bank, Suncor Help Drive the TSX Higher

The U.S. market came back from its long weekend refreshed and ready to rally. Canada says thanks!

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The Motley Fool

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.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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