Canada's main stock index opened higher on Tuesday, rebounding from a three-week low in the previous session, as energy shares gained on the back of higher crude prices and short-covering sentiment ahead of the holiday season.
The S&P/TSX Composite popped 226.18 points, or 1.1%, to open Tuesday at 20,764.40.
The Canadian dollar inched up 0.04 cents at 77.34 cents U.S.
A silver mine owned by Pan American Silver in Argentina was back in limbo on Monday after the provincial government repealed a mining law approved last week. Pan American shares bounced 29 cents higher to $31.48.
CIBC cut the rating on Bank of Montreal to neutral from outperform. BMO stock jumped $1.17 to $132.71.
Scotiabank raised the target price on Canadian National Railway to $166.00 from $160.00. CN shares perked 78 cents to $155.28.
National Bank of Canada cuts target to $12.25 from $13.50. National shares acquired $1.03, or 1.1%, to $95.40.
On the economic board, Statistics Canada reported retail sales for October were up 1.6% to $57.6 billion. The increase was led by higher sales at motor vehicle and parts dealers (+2.2%), as new car dealer sales (+2.8%) rebounded. Sales increased in seven of 11 sub-sectors, representing 59.9% of retail trade.
ON BAYSTREET
The TSX Venture Exchange rebounded 17.46 points, or 2%, to 900.09.
All 12 TSX subgroups moved upward in the first hour, with health-care haler 2.5%, energy rumbling 2.4%, and information technology clicking higher 1.7%.
ON WALLSTREET
The major averages rebounded on Tuesday following three days of losses amid fears about the fast-spreading COVID omicron variant.
The Dow Jones Industrials hiked 396.11 points, or 1.1%, to open for business Tuesday at 35,328.27, helped by gains in Nike and Boeing.
The S&P 500 index leaped 37.88 points to 4,605.90.
The NASDAQ spiked 120.62 points at 15,101.56.
Reopening plays, like airlines, cruise lines and entertainment stocks, saw some relief buying on Tuesday. Delta Air Lines rose 2.5%, United Airlines gains 3% and Carnival Corp. added 4%. Las Vegas Sands was up more than 3%. Caesars Entertainment added 5%.
Micron shares surged nearly 8% after the memory-chip maker posted much better than expected earnings for the prior quarter and gave bullish guidance. NXP Semiconductors and Advanced Micro Devices gained 1% each.
Nike shares jumped 6% after the sneaker maker reported quarterly earnings and sales that exceeded analysts’ expectations, despite ongoing supply chain pressures. Other retailers like Gap, Dick’s Sporting Goods and Macy’s also gained.
Stocks are coming back from a three-day losing streak spurred by the omicron surge that accounted for 73% of new infections in the U.S. last week, federal health officials said Monday. The S&P 500 notched its worst three-day stretch since September on Monday.
Investors also assessed the prospects for President Joe Biden’s economic agenda. The Senate will vote on Biden’s sweeping social safety net and climate policy bill in January, despite Democratic Sen. Joe Manchin’s opposition to it. It is unclear if Democrats will try to pass a smaller bill that includes only parts of the full package.
Prices for 10-year Treasurys stumbled, raising yields to 1.48% from Monday’s 1.43%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.81 to $70.42 U.S. a barrel.
Gold prices slid $3.90 to $1,790.70 U.S. an ounce.
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