TSX Rakes in Gains

Great West, Vermilion in Focus

Canada's main stock index extended gains on Wednesday, after rising by the most in nearly two months in the previous session, as energy stocks benefited from higher oil prices.

The TSX Composite index came off its highs of the morning, but still registered 109.67 points in the green to greet noon Wednesday at 20,052.38.

The Canadian dollar gained 0.78 cents to 79.68 cents U.S.

Great-West Lifeco rose 60 cents, or 1.6%, to $37.16 after the insurer said its U.S. unit would buy Prudential Financial full-service retirement business for about $4.45 billion in one of its biggest deals yet.

The largest percentage gainers on the TSX were Vermilion Energy, which jumped 55 cents, or 6.5%, to $9.03, after JPMorgan raised price target for the oil producer's stock, and miner Lithium Americas, which rose 80 cents, or 4.7%, to $17.77.

Medical marijuana company OrganiGram Holdings gained five cents, or 1.5%, to $3.32.

Wesdome Gold Mines eased two cents to $12.23.

ON BAYSTREET

The TSX Venture Exchange rocketed 13.21 points, or 1.5%, to 903.07

Eight of the 12 TSX subgroups were positive midday, energy gushing 2.5%, while real-estate and materials each improved 0.7%.

The four laggards were weighed most by communications sliding 0.6%, gold, falling 0.4%, and consumer staples, off 0.3%.

ON WALLSTREET

U.S. stocks are higher on Wednesday as equities continue their rebound from a one-day rout to start the week.

The Dow Jones Industrials popped 272.11 points, to break for lunch Wednesday at 34,784.10.

Better-than-expected earnings reports from Dow members Coca-Cola and Johnson & Johnson added to the bullish sentiment.

The S&P 500 climbed 29.4 points to 4,352.46

The NASDAQ added 87.41 points to 14,586.29, even though shares of Netflix declined on a disappointing subscriber forecast.

Stocks that would benefit most from a continued swift economic reopening are set to bounce again on Wednesday after rebounding from the Monday selloff in the prior session. Shares of Carnival were up more than 7%. Las Vegas Sands was up 2%.

Dow member Coca-Cola gave a boost to market sentiment after reporting quarterly revenue that topped pre-pandemic 2019 levels and raising its full-year forecast. Coca-Cola shares gained more than 1%.

Fellow Dow member Johnson & Johnson’s stock is trading nearly flat even after the drugmaker reported better than expected second-quarter earnings and revenue and also raised its 2021 guidance.

Moderna joined the S&P 500, giving the stock a 20% boost from when the addition was announced a week ago. Its shares are trading slightly in the red, however.

Verizon shares are up more than 1% in after reporting better-than-expected revenue and subscriber growth and raising its full-year outlook.

Shares of Chipotle rose more than 10% as the Mexican fast-food chain reported quarterly revenue that surpassed pre-pandemic levels as dine-in customers returned to its restaurants.

Netflix reported disappointing third quarter subscriber guidance after the bell on Tuesday. The streaming giant said it expects 3.5 million net subscribers in the third quarter, nearly two million below analysts’ estimates. The company also reported earnings that missed expectations.
Netflix shares were last down 4%.

About 85% of S&P 500 companies that have reported so far have beaten estimates.

Prices for 10-Year Treasurys fell, raising yields to 1.29% from Tuesday’s 1.22%. Treasury prices and yields move in opposite directions.

Oil prices took on $2.95 to $70.15 U.S. a barrel.

Gold prices lost $7.10 to $1,804.80 U.S. an ounce.