Equity markets in Canada’s largest centre opened higher on Tuesday as sentiment was helped by better-than-expected trade data from China and signs that some economies were preparing to ease lockdowns as coronavirus cases seemed to plateau.
The S&P/TSX Composite Index shot higher 305.51 points, or 2.2%, to begin Tuesday at 14,381.45.
The Canadian dollar faded 0.04 cents to 72 cents U.S.
Scotiabank cut the target price on Black Diamond Group to $1.75 from $2.75. Black Diamond shares started out Tuesday unchanged at $1.26.
Wells Fargo cut the target price on Enbridge to $51.00 from $52.00. Enbridge shares gained 45 cents, or 1.1%, to $40.25.
CIBC cut the target price on Stella-Jones to $40.00 from $41.00. Stella-Jones obtained 29 cents to $32.89.
ON BAYSTREET
The TSX Venture Exchange gained 12 points, or 2.7%, to 449.16
All 12 TSX subgroups gained ground, with consumer discretionary and information technology each climbing 3.6%, while health-care issues picked up 3.4%.
ON WALLSTREET
Stocks jumped on Tuesday as investors grew more optimistic about the coronavirus outlook while bracing for the start of the corporate earnings season.
The Dow Jones Industrial vaulted 623.77 points, or 2.7%, to 24,014.54
The S&P 500 recovered 77.51 points, or 2.8%, to 2,839.14.
The NASDAQ Composite gained handsomely, picking up 273.16 points, or 3.3%, to 8,465.58
The corporate earnings season kicked off on Tuesday with JPMorgan Chase and Johnson and Johnson reporting their latest quarterly results, giving investors their first look at how devastating the hit to corporations has been from the pandemic.
J&J was the best-performing stock in the Dow while the S&P 500 was led higher by 2% rallies in tech, real estate and utilities. Amazon rose to an all-time high to lead the NASDAQ higher.
JPMorgan Chase reported a big profit decline for the first quarter, but the stock rose 2.2% on record markets revenue. Johnson & Johnson shares gained 3.6% on better-than-expected earnings. Analysts expect S&P 500 earnings growth to decline 10.2% in the first quarter year-over-year, according to Refinitiv. There is also an unusually wide range of estimates given the unprecedented uncertainty from the coronavirus.
Wells Fargo, meanwhile, reported first-quarter profits well short of expectations as the San Francisco-based bank set aside cash for credit losses amid the coronavirus pandemic. It reported earnings of one cent per share, below analyst estimates of 33 cents per share.
For the first quarter, 88 negative earnings pre-announcements have been issued by S&P 500 corporations, according to Refinitiv. A wave of major companies have already withdrawn their full-year guidance.
The number of coronavirus cases continues to rise globally. Data from Johns Hopkins University shows there are more than 1.9 million cases around the world, with over 582,000 in the U.S.
Prices for the 10-Year U.S. Treasury inched up, lowering yields to 0.75% from Monday’s 0.76%. Treasury prices and yields move in opposite directions.
Oil prices slid 60 cents to $21.81 U.S. a barrel.
Gold prices climbed $17.40 to $1,778.80 U.S. an ounce.
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