Equities in Canada’s largest centre rose in early trade on Thursday, led by energy sector shares, after an unexpected rise in Chinese exports raised hopes of a revival in global demand and boosted oil prices.
The S&P/TSX Composite Index sprinted 172.79 points, or 1.2%, to open Thursday at 15,003.53.
The Canadian dollar dived 0.55 cents to 70.70 cents U.S.
Bombardier missed analysts' estimates for quarterly core profit, hurt by delayed deliveries of its business jets due to the COVID-19 pandemic, and forecast business activity to plummet in the second quarter. Bombardier shares gathered a penny, or 1.9%, to 54 cents.
Canadian Tire on Thursday reported a 0.7% rise in first-quarter comparable sales at its namesake stores, driven by a surge in online sales, even as its stores remained closed due to the coronavirus outbreak. Canadian Tire hiked 91 cents, or nearly 1%, to $93.80.
Canadian Natural Resources posted a quarterly loss on Thursday from a year-ago profit, hurt by a significant decline in crude oil prices caused by the COVID-19 outbreak and a price war between Saudi Arabia and Russia. Natural Resources shares gained 34 cents, or 1.6%, to $22.04.
Magna International reported a 51% fall in quarterly adjusted profit on Thursday, hurt by a decline in global automobile production due to the coronavirus crisis. Magna shares picked up 86 cents, or 1.7%, to $52.56.
Nutrien said on Wednesday it has seen limited impact from the coronavirus outbreak, but cut its annual forecast as oil downturn hit corn demand and potash prices are hard-pressed outside North America. Nutrien shares slid 67 cents, or 1.3%, to $49.87.
Manulife Financial reported a 34% drop in first-quarter core earnings on Wednesday, missing analyst expectations, on unfavorable market conditions and lower sales in Japan that weighed on earnings from Asia. Manulife shares galloped 38 cents, or 2.3%, to $17.07.
Enbridge on Thursday reported a loss for the first quarter compared with a profit a year earlier, hit by nearly $4 billion in charges related to its investment in DCP Midstream and derivative losses. Enbridge gained $1.90, or 4.3%, to $45.17.
Eight Capital raised the target price Barrick Gold to $45.00 from $40.00. Barrick added 30 cents to $37.82.
CIBC raised the target price on Franco-Nevada to $220.00 from $195.00. Franco shares gained 49 cents to $201.84.
RBC raised the rating Sun Life Financial to outperform from sector perform. Sun Life jumped $1.20, or 2.5%, to $49.01.
Western University’s IVEY School of Business put out its Purchasing Managers’ Index for April, and revealed the index fell yet again to 22.8 from March's reading of 26, and way down from April 2019's level of 55.9.
ON BAYSTREET
The TSX Venture Exchange gained 2.06 points to 480.88.
All but one of the 12 TSX subgroups were positive in the first hour of trade, with energy gushing 2.7%, consumer discretionary 2.2% more solid, and financials up 1.7%.
Only health-care missed the festivities, down 1.9%.
ON WALLSTREET
Stocks jumped in early trading Thursday as investors bet on the U.S. economy reopening soon and as oil prices rebounded.
The Dow Jones Industrials triumphed 358 points, or 1.5%, to 23,871.
The S&P 500 recovered 46 points, or 1.6%, to 2,879.50.
The NASDAQ Composite jumped 126.75 points, or 1.4%, to 9,078.25.
The tech-heavy NASDAQ also turned positive for 2020, making it the first of the three major averages to claw back its steep losses for the year. That rebound was largely driven by sharp gains in big tech stocks such as Facebook, Amazon, Apple, Netflix and Alphabet.
Those stocks are all up at least 15% this quarter and are positive for 2020. Microsoft, another major tech stock, has rallied more than 16% this year and for the quarter.
In corporate news, Peloton reported revenues surged 66% during its fiscal third quarter as more Americans bought fitness equipment for at-home use during the coronavirus pandemic.
Critically, Peloton said it is seeing demand from new customers who’ve been inspired to buy one of its bikes amid the COVID-19 outbreak. Peloton shares rose more than 11%.
Stocks that would benefit from the reopening of the economy also gained in early trading, including Hilton Worldwide and MGM Resorts. Hilton traded 1.8% higher while MGM gained 1.7%. Carnival traded more than 4% higher while Norwegian Cruise Line gained 5.1%.
Thursday’s gains came even as another 3.17 million Americans filed for unemployment benefits last week, bringing the seven-week total to 33.5 million. But while jobless claims continue to rise, last week’s tally was the lowest since shortly after the coronavirus was declared a pandemic.
States such as California and New York have unveiled plans to gradually reopen the economy. Other states, including Georgia, have already let some nonessential businesses resume operations.
Meanwhile, China posted better-than-expected exports for April. Data from the General Administration of Customs released on Thursday showed exports rose 3.5% in April, versus expectations of a 15.7% decrease from economists.
Recent data out of China, where the earliest cases of the coronavirus were reported, have been closely watched by investors as the country was one of the first to ease lockdown measures
Prices for the 10-Year Treasury were unchanged, keeping yields at from Wednesday’s 0.70%.
Oil prices advanced $2.06 to $26.05 U.S. a barrel.
Gold prices re-surged $10.40 to $1,698.90 U.S. an ounce.
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