Equities in Canada’s largest market took off for the sky Monday, strengthened by spurts in energy and financial stocks, as investors derived good vibes from Moderna’s announcement of an effective vaccine to prevent the coronavirus.
The TSX gained 214.17 points, or 1.3%, to 16,889.81.
The Canadian dollar gathered 0.19 cents to 76.37 cents U.S.
In the energy field, Enerplus triumphed 24 cents, or 8.8%, to $2.97, while Parex Resources climbed $1.27, or 8.5%, to $16.15.
Among financials, Royal Bank moved ahead $1.20, or 1.2%, to $101.60, while CIBC jumped $1.32, or 1.2%, to $107.70.
Real-estate issues also powered up, with units of Allied Properties REIT taking on 84 cents, or 2.2%, to $39.63, while REAL Matters gained 80 cents, or 3.4%, to $24.63.
Among miners, Agnico Eagle Mines dived $1.81, or 1.9%, to $95.73, while Kirkland Lake Gold lost $1.63, or 2.8%, to $57.67.
In consumer staples, Jamieson Wellness sank $1.40, or 3.7%, to $36.60, while George Weston removed $1.45, or 1.5%, to $98.62.
In the tech sector, Kinaxis surrendered $7.57, or 4.3%, to $167.04, while Sierra Wireless doffed 55 cents, or 3.7%, to $14.30.
In the economic docket, Statistics Canada reported manufacturing sales Manufacturing sales rebounded in September, rising 1.5% to $53.8 billion on higher sales of wood and chemical products.
The agency added the increase brought manufacturing sales to within 3.6% of their higher pre-pandemic levels in February.
The Canadian Real Estate Association reported Monday morning that home sales recorded over Canadian MLS® Systems in October 2020 edged back by 0.7% from September’s all-time record for monthly sales.
ON BAYSTREET
The TSX Venture Exchange added 6.27 points to 742.64.
Seven of the 12 TSX subgroups remained ahead on the day, with energy surging 5%, financials climbing 2.4%, real-estate solidifying 2.1%.
The five laggards were weighed most by gold, sinking 1.1%, while consumer staples lost 0.4%, and information technology issues swooned 0.3%.
ON WALLSTREET
U.S. stocks rose on Monday after preliminary coronavirus vaccine data from Moderna further lifted expectations of a strong economic recovery.
The Dow Jones Industrials spiked 470.63 points or 1.6%, to 29,950.44, to a new record close.
The S&P 500 also chieved a new high, climbing 41.76 points, or 1.2%, to 3,626.91
The NASDAQ gained 94.84 points to 11,924.13.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 5.2%, and Carnival closed 9.7% higher. Bank stocks such as Citigroup and Wells Fargo gained more than 3% each and JPMorgan Chase advanced 2.8%.
Shares of companies that have thrived during the pandemic as people spend more time at home lagged the boarder market. Netflix slid 0.8%. Amazon shares closed flat.
Moderna shares jumped 9.5% on the day. The promising Moderna announcement makes the Massachusetts-based biotech firm the second drugmaker to say it has a potentially effective vaccine.
Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy. The companies said at the time that their candidate was more than 90% effective in preventing Covid-19 among participants.
Traders were also excited on Monday after Moderna said its vaccine remains stable at 36 to 46 degrees Fahrenheit, the temperature of a standard home or medical refrigerator, for up to 30 days. It can be stored for up to six months at negative 4 degrees Fahrenheit. By comparison, Pfizer’s vaccine requires a storage temperature of minus 94 degrees Fahrenheit.
To be sure, the number of coronavirus cases are still rising, thus threatening the prospects of a swift economic recovery.
More than 11 million Covid-19 infections have been confirmed in the U.S., according to data from Johns Hopkins University. Data from the COVID Tracking Project also showed that a record of more than 68,500 people in the U.S. are hospitalized with the coronavirus.
Prices for the 10-Year Treasury were lower, raising yields to 0.91% from Friday’s 0.9%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.29 to $41.42 U.S. a barrel.
Gold prices added $1.40 to $1,887.60
