Canada’s main stock index rose on Wednesday as a slew of positive earnings reports helped steady investor nerves ahead of an interest rate decision from the U.S. Federal Reserve.
At 10:21 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 158.41 points, or 0.83%, at 19,131.09.
The industrials sector gained 2%, while the technology stocks advanced 2.9%, leading sectoral gains.
Canadian National Railway and Rogers Communications rose 3.9% and 0.9%, respectively, on reporting better-than-expected results.
“The ability of Canadian National Railway to increase prices stood out,” said Allan Small, senior investment advisor at Allan Small Financial Group.
“Whenever a company has pricing power, they’re able to withstand and thrive in the environment we see now… It has a diversified business and pricing power and that definitely helps with their results.”
Shopify Inc climbed 8.8%, reversing some of Tuesday’s heavy losses, even as it warned of an adjusted operating loss for the second half of the year.
“Investors are at a point where even though bad and disappointing news is there, the stock is so down that people will mainly look at buying,” said Small.
The index was also buoyed by gains on Wall Street, which was lifted by upbeat quarterly reports from Microsoft Corp and Alphabet Inc.
The Fed is widely expected to raise interest rates by 75 basis points at the end of its two-day meeting later on Wednesday.
Investors on both sides of the border are waiting to parse the central bank’s statement for any shift in rhetoric on future rate hikes.
Among other results, retail group Loblaw Cos Ltd fell 0.6% on reporting quarterly revenue below estimates, while miner Teck Resources Ltd slid 0.6% after it said Chief Executive Don Lindsay will step down after 17 years in the role.
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