Canadian Banks Help the S&P/TSX Composite Trump Its U.S. Peers in Tuesday Trading

Good economics and a sound government (relatively speaking!) help push the TSX higher.

| More on:
The Motley Fool

Tuesday saw North American markets start strong, but as the afternoon went on, U.S. markets turned south while the S&P/TSX Composite (^GSPTSE) held firm.

Strong retail sales numbers for July seemed to help keep Canadian investor’s heads held high, while uncertainty around the whole debt-ceiling, government shut down, etc. dogged the U.S. markets.  In the end, it was Canada +0.29% and the U.S., as represented by the S&P 500, -0.26%.  Ah, the benefits of a highly functioning government!

Leading the Canadian market higher were a couple of the Canadian banks as TD Bank (TSX:TD) and Royal Bank (TSX:RY) booked respective gains of 0.74% and 0.44%.  It was because of the weights that these financial monsters carry in the Index that led to their significant contributions.

Cenovus Energy (TSX:CVE) was another sizeable contributor as the oil sands player booked a respectable 1.88% gain.  Cenovus shares lifted despite the price of WTI oil falling slightly to close at US$103.36/bbl.

In direct contrast, and taking its cue from the declining oil price, Suncor Energy (TSX:SU) was today’s biggest drag on our market.  The stock fell 1.45%.

The reason for the divergence between the two oil giants escapes this Fool at the moment.  There does not appear to be anything material in either case to drive the performance one way or the other.

Motley Fool Canada’s top 2 stock ideas
Our senior investment analyst will unveil his top two stock ideas for new money now on Oct. 1. And YOU can be one of the select few investors to find out first — just click here to reserve your invitation.

Fool contributor Iain Butler owns shares of Cenovus Energy.  The Motley Fool does not own shares of any 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.

More on Investing

Prospects for TD Bank stock
Bank Stocks

TD Bank in Hot Water: An ‘Exceptional’ Opportunity

Is TD Bank stock a buy after its money-laundering regulatory problems?

Read more »

investment research
Dividend Stocks

2 TSX Stocks to Buy in 2024 and Hold for the Next 10 Years

Are you looking for some great TSX stocks to buy in 2024? The market is full of options, but these…

Read more »

Retirement
Dividend Stocks

Pensioners: 2 Stocks That Cut You a Cheque Each Month

Monthly pay dividend stocks like First National Financial (TSX:FN) cut you a cheque each month.

Read more »

money cash dividends
Dividend Stocks

Want Decades of Passive Income? 2 Energy Stocks to Buy Now and Hold Forever

Are you wondering what TSX energy stocks could pay and grow their dividends for decades ahead? Here are two for…

Read more »

The sun sets behind a power source
Dividend Stocks

2 No-Brainer Utilities Stocks to Buy Right Now for Less Than $200

These two utilities stocks can be some of the best picks for investors if you want to shell out some…

Read more »

grow dividends
Energy Stocks

Growth Spurt: 2 TSX Stocks Set to Skyrocket

Two growth stocks in expanding, niche markets are set to skyrocket further in 2024 and beyond.

Read more »

Nuclear power station cooling tower
Energy Stocks

Why Shares of Cameco Are Powering Higher

Cameco (TSX:CCO) shares have surged more than 400% in the last five years alone, with more growth on the way.

Read more »

A bull outlined against a field
Stocks for Beginners

Bull Market Buys: 2 TSX Stocks to Own for the Long Run

Are you looking for stocks that could see a bull run for decades ahead? Here are two top TSX stocks…

Read more »