Canada's main stock index rose on Wednesday, supported by energy and material stocks, as investors hope for U.S. stimulus as Joe Biden takes over as the next president.
The S&P/TSX Composite Index remained above breakeven 20.05 points to pause for lunch Wednesday at 17,977.42.
The Canadian dollar gained 0.49 cents to 79.09 cents U.S.
The largest percentage gainer on the TSX was Blackberry, which jumped 81 cents, or 5.2%, to $16.40, extending gains from prior session after the cybersecurity firm settled patent disputes with Facebook.
Its gains were followed by oil producer MEG Energy, which rose 39 cents, or 8.5%, to $5.00.
Fuel-cell products developer Ballard Power Systems fell $2.39, or 5.2%, the most on the TSX, to $43.24, and the second biggest decliner was Trillium Therapeutics, down $1.18, or 6.4%, to $17.31.
On the economic beat, Statistics Canada’s Consumer Price Index (CPI) rose 0.7% on a year-over-year basis in December, down from a 1.0% increase in November. On a seasonally-adjusted monthly basis, the CPI rose 0.1% in December.
The Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.25%
ON BAYSTREET
The TSX Venture Exchange dropped 0.27 points, to reach noon at 931.21.
Seven of the 12 TSX subgroups were in plus territory by noon, as gold soared 1.4%, materials were up 1%, and information technology, up 0.9%.
The five laggards were led by health-care, down 1.6%, industrials, off 0.5%, and communications, sliding 0.4%.
ON WALLSTREET
Stocks climbed for a second day on Wednesday ahead of President-elect Joe Biden’s inauguration, while a slew of strong corporate earnings boosted sentiment on Wall Street.
The Dow Jones Industrials jumped 208.36 points to 31,138.88.
The S&P 500 strengthened 45.94 points, or 1.2%, to 3,844.88, an all-time high, led by the communication services sector.
The NASDAQ leaped 233.69 points, or 1.8%, to 13,430.87, also a record, amid a pop in Netflix shares.
Netflix soared more than 13% after the company reported strong subscriber growth and said it’s considering share buybacks. Netflix handily beat estimates for global paid net subscriber additions, reporting 8.5 million versus the 6.47 million analysts anticipated. The company also said it expects to break even on a cash flow basis this year.
Shares of streaming-competitor Disney jumped more than 2% following Netflix’s strong subscriber numbers.
Morgan Stanley gained as much as 2% after earnings and revenue topped estimates on solid trading and wealth management results. Shares last traded flat.
Procter & Gamble raised its forecast and said revenue last quarter jumped on higher pandemic demand for cleaning products. The stock dipped 1%, however.
Biden was inaugurated to succeed President Donald Trump as the 46th president of the United States. His inauguration speech focused on the need to bring the country together on the heels of a riot on Capitol Hill and amid extreme partisanship in Congress.
Investors will also be on the lookout for any further information about Biden’s $1.9-trillion COVID-19 relief plan unveiled last week. On Tuesday, Janet Yellen, Biden’s designated nominee for Treasury Secretary, endorsed higher aid spending and urged lawmakers to "act big."
Biden’s stimulus proposal calls for direct payments of $1,400 to most Americans and additional unemployment benefits as well as state and local government aid. He also announced a sweeping plan to combat the pandemic in the U.S., which includes a nationwide vaccine campaign.
The U.S. fell far short of its goal of vaccinating 20 million people by the end of last year. While the Trump administration’s Operation Warp Speed has delivered over 31.1 million doses across the country, only 12.3 million people have been inoculated.
Prices for the 10-Year Treasury slipped, raising yields to 1.10% from Tuesday’s 1.09%. Treasury prices and yields move in opposite directions.
Oil prices gained 39 cents to $53.37 U.S. a barrel.
Gold prices gained $27.40 to $1,867.50 U.S. an ounce.
