Energy stocks helped Canada's main stock index gain at the open on Wednesday as oil prices hit their highest since early March after data showed a big drop in U.S. crude inventories.
The S&P/TSX Composite Index chugged higher 111.06 points to 16,479.09.
The Canadian dollar climbed 0.28 cents to 75.48 cents U.S.
Thomson Reuters reported slightly lower revenue and an 18% fall in operating profit for the second quarter on Wednesday, and reaffirmed its forecast for the rest of 2020. Thomson shares shed a dollar, or 1.1%, to $93.71.
CIBC raised the target price on Exchange Income Corp to $30.00 from $27.00. Exchange shares sprang 40 cents, or 1.5%, to $26.60.
Credit Suisse raised the price target on Gibson Energy to $24.00 from $22.00. Gibson rose 96 cents, or 4.2%, to $23.86.
CIBC raised the target price on Information Services to $20.00 from $15.50. Information shares were flat at $17.50.
On the economic calendar, Statistics Canada said Canadian merchandise imports and exports rebounded sharply in June, mostly on the strength of motor vehicles and parts.
The agency added imports rose 21.8% and exports were up 17.1%. Canada's merchandise trade deficit with the world widened from $1.3 billion in May to $3.2 billion in June.
ON BAYSTREET
The TSX Venture Exchange jumped 14.98 points, or 2%, to open for business Wednesday at 756.55.
Seven of the 12 TSX subgroups gained ground in the first hour, led by energy, gushing 4.2%, materials, better by 2.1%, and gold, 2% to the good.
The five laggards were weighed down mostly by utilities, sagging 0.7%, health-care, ailing 0.3%, and communications, down 0.2%.
ON WALLSTREET
Stocks rose on Wednesday on the back of coronavirus vaccine hopes and strong earnings from Disney. However, gains were capped as July private payrolls data disappointed and lawmakers continued negotiations on a new virus stimulus package.
The Dow Jones Industrials popped 257.80 points, or 1%, to 27,086.27.
The S&P 500 gained 19.12 points to 3,325.41. Both the Dow and S&P 500 posted three-day winning streaks.
The NASDAQ progressed 33.48 points to a record high of 10,974.65.
Johnson & Johnson announced it struck a $1 billion deal with the U.S. government to manufacture 100 million doses of its coronavirus vaccine candidate if it proves successful. J&J shares rose 0.8%.
Better-than-expected earnings from Disney also helped sentiment on Wall Street. The theme park and media giant earned a profit of 8 cents per share, while analysts expected a loss of 64 cents per share. Disney said it now has 100 million paid subscribers across its streaming services, which include Disney+, Hulu and ESPN+.
Disney shares popped 10%.
ADP reported Wednesday that private payrolls in the U.S. increased by just 167,000 in July. That’s well below a Dow Jones estimate of one million and represents a tumble from the 4.314 million added in June.
The ADP report is seen as a preview to the government’s monthly jobs report, which is forecast to show a gain of more than 1.2 million jobs’
The final read on July Services Purchasing Managers Index was released this morning. Economists polled by Dow Jones expected a read of 49.6, the same as June. Finally, the Institute for Supply Management’s non-manufacturing survey was also set for release. Economists estimated a red of 55, down from June’s read of 57.1.
Traders also grappled with continuing talks in Washington over a new coronavirus stimulus package.
The White House and Democratic congressional leaders have reported some progress in the negotiations, but they remain apart on some issues.
Prices for the 10-Year Treasury dropped sharply, raising yields to 0.55% from Tuesday’s 0.51%. Treasury prices and yields move in opposite directions.
Oil prices piled on $1.59 to $43.29 U.S. a barrel.
Gold prices leaped $39.40 to $2,060.40 U.S. an ounce.
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