Stocks Perk on Stimulus Promises

Nomad, Organigram at Centre-Stage

Equities in Canada’s largest market gained on Wednesday as investors expect fiscal stimulus measures that will be announced next week to be huge, while a jump in oil prices supported the commodity-heavy index.

The TSX surged 88.46 points in gains to open Wednesday at 19,292.16.

The Canadian dollar slumped 0.13 cents at 79.64 cents U.S.

Canaccord Genuity cuts the rating on Badger Daylighting to hold from buy. Badger shares lost $1.10, or 2.7%, to $40.16.

CIBC initiated coverage on Nomad Royalty Company with neutral rating. Nomad shares docked a penny to 95 cents,

CIBC cuts the rating on Organigram Holdings to underperform from neutral. Organigram shares fell 28 cents, or 7.6%, to $3.36.

The federal Liberals will deliver on their promise to spend big when it presents its first budget in two years next week amid a fast-rising third wave of COVID-19 infections and ahead of an election expected in the coming months.

ON BAYSTREET

The TSX Venture Exchange re-strengthened 2.15 points to 935.46.

Eight of the 12 TSX subgroups began the mid-week session positive, with energy sprouting 2.1%, consumer discretionary shares up 1.5%, and materials picking up 0.7%.

The four laggards were weighed most by health-care, off 0.6%, consumer staples, sliding 0.2%, and gold, fading 0.1%.

ON WALLSTREET

U.S. stocks rose on Wednesday as investors digested the first batch of corporate earnings.

The Dow Jones Industrials re-charged 180.33 points to kick off Wednesday at 33,857.60.

The S&P 500 gained 7.36 points to 4,148.95, to reach a new all-time high.

The NASDAQ Composite gathered 26.35 points to 14,022.44.

Shares of Goldman Sachs climbed 3% after the bank blew past analysts’ expectations with record first-quarter net profits and revenues on strong performance from the firm’s equities trading and investment banking units.

JPMorgan Chase beat analysts’ estimates on top and bottom lines, helped by a $5.2-billion benefit from releasing money it had previously set aside for loan losses that didn’t develop. Shares of JPMorgan dipped about 1%.

Wells Fargo also reported earnings and revenue that exceeded expectations for its first quarter. The stock was slightly lower.

Bank stocks have risen sharply so far this year, with the KBW Bank Index easily outpacing the S&P 500.

Reopening plays recouped some of the losses from the previous session amid a halt to the rollout of the Johnson & Johnson’s COVID-19 vaccine. American Airlines rose 2%, while United Airlines climbed nearly 3%. Carnival, Norwegian Cruise Line and Royal Caribbean all gained at least 1%.

On Tuesday, the Food and Drug Administration called for a pause in administering J&J’s COVID-19 vaccine after six people in the U.S. developed a rare disorder involving blood clots.

Pfizer CEO Albert Bourla said the drug maker can deliver 10% more vaccine doses to the U.S. by the end of May than previously expected.

Plus, Moderna said its COVID-19 vaccine was more than 90% effective at protecting against the virus six months after a person’s second shot.

Market participants will also be watching for the Coinbase direct listing on Wednesday. Crypto investors are hailing the company’s stock market debut as a major milestone for the industry after years of skepticism from Wall Street and regulators. The price of bitcoin surged to a fresh record high of more than $63,500 on Tuesday.

Prices for 10-Year Treasurys lost ground, raising yields to 1.64% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.

Oil prices acquired $1.40 to $61.58 U.S. a barrel.

Gold dipped $11.00 to $1,736.60 U.S. an ounce.