TSX Benefits from Triple-Digit Gains

Cronos, Canada Goose in Focus

Equities in Canada’s largest centre enjoyed strong gains Wednesday, mostly on the backs of health-care stocks, as much more of the emphasis was placed in the news on members of that sector.

The S&P/TSX Composite Index heightened 154.88 points, or nearly 1%, to finish Wednesday at 16,063.33.

The Canadian dollar leaped 0.49 cents at 74.01 cents U.S.

Among health-care concerns, Cronos Group soared 73 cents, or 8.4%, to $9.42, while Aurora Cannabis added $1.22, or 7.8%, to $17.36.

Real-estate issues were also stronger, as Boardwalk REIT zoomed $1.68, or 5.9%, to $30.08, while First Capital REIT increased 74 cents, or 5.6%, to $13.96.

Among consumer discretionary stocks, Canada Goose Holdings flew $1.74, or 5.8%, to $32.44, while Sleep Country Canada acquired $1.77, or 11.6%, to $17.07.

Gold, however, didn’t have the brightest day, with Alacer Gold dropping 18 cents, or 1.9%, to $9.50, while Equinox faltered 27 cents, or 1.8%, to $15.15.

Among materials, CCL Industries gave back $1.14, or 2.6%, to $43.59, while SSR Mining dipped 56 cents, or 1.9%, to $29.39.

On the economic docket, Statistics Canada reported manufacturing sales increased 10.7% to $40.2 billion in May following a record 27.9% decline in April, as many manufacturers resumed operations following full or partial shutdowns related to COVID-19 during the previous month.

The Bank of Canada today maintained its target for the overnight rate at the effective lower bound of 0.25%.

The Canadian Real Estate Association reported national home sales rose 63% on a month-over-month basis in June. Actual (not seasonally adjusted) activity was up 15.2% year-over-year.

ON BAYSTREET

The TSX Venture Exchange gained 4.84 points to end Wednesday at 667.39.

All but two of the 12 TSX subgroups were higher on the day, led by health-care, vaulting 5%, real-estate, climbing 2.8%, and energy, 2.6% more solid.

Among the two laggards, gold dulled in price 0.5%, materials fell 0.2%

ON WALLSTREET

Stocks rose Wednesday on the back of positive coronavirus vaccine news and a blowout quarter from Goldman Sachs.

The Dow Jones Industrials climbed 227.51 points to close at 26,870.10. It was the Dow’s fourth straight daily gain.

The S&P 500 gained 29.04 points to 3,226.56.

The NASDAQ made its way into the positive ranks, 61.92 points, to 10,550.49. Apple contributed to the gains Wednesday, rising 0.7% after a European Union court annulled a 2016 European Commission order for the tech giant to pay $15 billion in taxes.

The major averages closed well off their session highs, however, as shares of other major tech companies declined. Amazon slid 2.4%. Netflix fell 0.3%. Alphabet and Microsoft also closed lower.

Moderna said its coronavirus vaccine produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial, according to newly released data published Tuesday evening in the peer-reviewed New England Journal of Medicine.

Shares of Moderna surged 6.9%. Stocks directly tied to an economic reopening jumped following the vaccine news. American Airlines, United Airlines, and Royal Caribbean Cruise Lines all popped more than 14%. Gap jumped 12.7% and Kohl’s gained more than 9%.

Several states, including California, have had to roll back reopening measures as coronavirus cases continue to rise. Confirmed cases in the U.S. total more than 3.4 million and deaths have surpassed 136,000, according to Johns Hopkins University.

Earnings season continued after Goldman Sachs reported quarterly numbers that easily beat analyst expectations. The company’s results were driven by a 93% surge in trading revenue. Goldman shares rallied 1.4%.

Bank earnings had been mixed leading up to Wednesday. JPMorgan Chase reported on Tuesday better-than-expected quarterly results on the back of a massive surge in trading revenue. Meanwhile, Wells Fargo suffered a $2.4-billion loss and slashed its dividend to 10 cents per share.

Prices for the 10-Year Treasury were slightly lower, raising yields back to Tuesday’s 0.63%. Treasury prices and yields move in opposite directions.

Oil prices gained 72 cents to $41.01 U.S. a barrel.

Gold prices recovered 60 cents to $1,814 U.S. an ounce.