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

Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.
Dividend Stocks

Secure Your Future: Invest in These TFSA Stocks for Retirement

Top dividend stocks like Suncor Energy Inc. are the perfect candidates to stash in a TFSA and secure a safe…

Read more »

falling red arrow and lifting
Stocks for Beginners

3 Oversold Stocks to Buy Before They Bounce Back

Sure, stocks drop. But once they're oversold stocks, companies like these are due to rebound quickly. So, consider these while…

Read more »

funds, money, nest egg

Want $1 Million in Retirement? Invest $50,000 in These 3 Stocks and Wait a Decade

Hyper-growth stocks like Constellation Software could turn $50,000 into a million by 2033.

Read more »

Red siren flashing
Dividend Stocks

Income Investors, Take Note: These Canadian Dividend Stocks Are on Fire

Here are two rallying Canadian dividend stocks you can buy now, despite broader market uncertainties.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 Oversold Dividend Stocks to Buy Now for Passive Income

Top Canadian dividend stocks are on sale!

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Diversify Your Portfolio With these 3 Canadian ETFs for June 2023

Index funds like the iShares S&P/TSX 60 Index Fund can be good long-term investments.

Read more »

bulb idea thinking
Tech Stocks

2 Aerospace and Defence Stocks to Watch as the Sector Gains Altitude

Investors looking for a long-term play on a recovering industry should definitely consider these two aerospace and defence stocks today!

Read more »

Bank sign on traditional europe building facade
Bank Stocks

The 2 Cheapest Bank Stocks to Buy in June 2023

Canadian investors navigating a volatile market should snatch up undervalued bank stocks like Bank of Nova Scotia (TSX:BNS).

Read more »