Stocks in Toronto staged a minor comeback midday Tuesday, even energy shares leading declines, on worries about the slower pace of an economic rebound after U.S. cases of COVID-19 surged.
The S&P/TSX Composite Index recovered 23.02 points to greet noon Tuesday at 15,692.69.
The Canadian dollar shed 0.21 cents at 73.66 cents U.S.
The largest percentage gainers on the TSX were Shopify which jumped $65.35, or 4.9%, to $1,400.17, and First Quantum Minerals, which rose 32 cents, or 2.8%, to $11.57.
Enerplus fell 18 cents, or 5.2%, the most on the TSX, to $3.27. The second biggest decliner was Cenovus Energy, down 13 cents, or 2.1%, to $6.17.
On the economic docket, Western University’s Ivey Purchasing Managers Index rocketed in June to 58.2, far above the reading of 39.1 in May, and even outdistancing the 52.4 level for June 2019.
ON BAYSTREET
The TSX Venture Exchange gained 6.99 points, or 1.1%, to 651.98.
The 12 TSX subgroups were evenly divided by noon EDT, with gold better by 1.8%, information technology stronger 1.1%, and materials improving 0.9%.
The half-dozen laggards were weighed down mostly by energy, descending 2.1%, while health-care and financials each collapsed 1.1%.
ON WALLSTREET
The NASDAQ Composite rose on Tuesday, recovering from a decline earlier in the session, as shares of major tech companies such as Microsoft and Apple outperformed.
The Dow Jones Industrials remained negative 166.67 points to pause for lunch Tuesday at 26,120.36.
The S&P 500 fell 3.8 points to 3,175.92.
The tech-heavy NASDAQ gained 44.02 points to 10,477.67, yet another new record high.
Microsoft shares gained 1.6% to hit an all-time high. Apple also reached record levels, climbing 1.2%. Facebook added 2.9% and Netflix gained 1%, to trade at all-time highs as well.
Positive news on the coronavirus front also gave stocks a boost. The U.S. government awarded drugmaker Novavax a $1.6-billion contract to develop a coronavirus vaccine, the biggest amount yet granted under the White House’s “Operation Warp Speed.” Novavax shares were up 34%.
To be sure, market sentiment was kept in check as stocks tied to the economy reopening from the coronavirus shutdowns were lower.
Norwegian Cruise Line and Carnival Corp were lower by about 2% each. American Airlines and United Airlines both fell more than 2%.
Atlanta Federal Reserve President Raphael Bostic also told The Financial Times the U.S. economic recovery will be “bumpier” as coronavirus cases continue to rise.
The U.S. Labor Department released Tuesday its latest report on U.S. job openings, which showed them growing to 5.4 million in May. The government’s Job Openings and Labor Turnover Survey is a month behind the more closely followed non-farm payrolls report, which showed a surge of 4.8 million in June and a 2.7 million jump in May.
The market continued to shrug off on Monday a continuous rise in coronavirus cases across the U.S. The number of people hospitalized with COVID-19 grew by 5% or more Sunday in 23 states, including Texas, which reported a record of more than 8,000 hospitalizations on Sunday.
California Gov. Gavin Newsom on Monday asked six additional counties to close their indoor businesses.
Prices for the 10-Year Treasury gained ground, dropping yields to Monday’s 0.67%. Treasury prices and yields move in opposite directions.
Oil prices recovered 18 cents to $40.81 U.S. a barrel.
Gold prices added $15.70 to $1,809.20 U.S. an ounce.
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