Canada's main stock index opened higher on Friday, bouncing back from a record drop a day earlier, as investors held out for coordinated stimulus efforts to dull the economic shock from the coronavirus outbreak.
The TSX Composite Index leaped 488.04 points, or 3.9%, to begin the last session of a forgettable week at 12,996.49
The Canadian dollar improved 0.34 cents at 72.06 cents U.S.
Prime Minister Justin Trudeau will be in isolation for two weeks after his wife, Sophie, tested positive for coronavirus on Thursday, and the outbreak prompted the province of Ontario to shutter schools to limit the spread.
Husky Energy followed rivals and cut its 2020 capital spending budget by $900 million on Thursday, citing challenging global market conditions.
Husky shares climbed 27 cents, or 9.4%, to $3.14.
RBC cut the price target Canadian Pacific Railway to $361.00 from $391.00. CP shares chugged along $6.30, or 2.3%, to $283.53.
National Bank of Canada cut the price target on Premium Brands Holdings to $103.00 from $110.00. Premium shares faded 70 cents to $74.00.
National Bank of Canada raised the rating on Transalta Renewables to outperform from sector perform. Transalta shares hopped 62 cents, or 5.6%, to $12.79.
ON BAYSTREET
The TSX Venture Exchange recovered 13.38 points, or 3.4%, to 406.04.
For a change, all 12 TSX subgroups moved upwards, with financials ahead 6.7%, energy vaulting 4.3%, and communications better by 3.7%.
ON WALLSTREET
Stocks rallied on Friday as Wall Street recovered some of the sharp losses suffered in the previous session — the worst since the “Black Monday” market crash in 1987.
The Dow Jones Industrials staged a mini-recovery Friday morning, gaining 596.54 points, or 2.8%, to 21,797.16.
The broader S&P 500 improved 92.93 points, or 3.8%, to 2,573.57. Before the open, S&P 500 futures hit their "limit up" levels, jumping more than 5%. These limit levels act as a ceiling for buying until regular trading begins and are meant to insure orderly trading.
The NASDAQ restocked 277.79 points, or 3.9%, to 7,479.59.
Apple shares jumped 6.8% after an analyst at Wells Fargo upgraded the tech giant to overweight from equal weight, citing a “compelling risk/reward” outlook.
Airline stocks rallied, with Delta gaining altitude of 14% and United picking up 9.5%. American traded higher by 9.2% while JetBlue gained 3.6%.
Stocks got a boost after House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. "We’ve resolved most of our differences," Pelosi told reporters Thursday evening, noting it’s about "testing, testing, testing."
Treasury Secretary Steven Mnuchin also told the media the White House and Congress were nearing a deal. "The president is absolutely committed that this will be an entire government effort, that we will be working with the House and Senate," Mnuchin said.
Investors were bombarded with a slew of negative headlines about the fast-spreading coronavirus. The NCAA has canceled its March Madness basketball tournaments, a day after the National Basketball Association suspended the remainder of its season indefinitely. New York Mayor Bill de Blasio declared a state of emergency, while new restrictions for large events and businesses were imposed.
Prices for the 10-Year U.S. Treasury let go of gains, raising yields to 0.97% from Thursday’s 0.89%. Treasury prices and yields move in opposite directions.
Oil prices gained 98 cents to $32.48 U.S. a barrel.
Gold prices dropped $12.10 to $1,578.20 U.S. an ounce.
