TSX Enjoys Gains Wednesday

MEG, First Quantum Stand Out

Canada's main stock index 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 remained ahead 72.13 points to move into lunch hour Wednesday at 19,275.83.

The Canadian dollar notched 0.02 cents higher to 79.79 cents U.S.

Energy led the pack, with MEG Energy acquiring 61 cents, or 9.8%, to $6.83, while Vermilion Energy popped 68 cents, or 8.8%, to $9.21.

Materials flourished, mostly First Quantum Minerals, jumping $1.65, or 6.4%, to $27.58, while Ivanhoe Mines picked up 43 cents, or 5.5%, to $8.23.

Among consumer discretionary stocks, Magna International soared $2.18, or 1.9%, to $119.50, while BRP gained $1.85, or 1.6%, to $116.04.

Hut 8 Mining dropped 74 cents, or 8.5%, to $8.01, while Shopify gave up $37.62, or 2.4%, to $1,517.95.

CIBC cuts the rating on Organigram Holdings to underperform from neutral. Organigram shares fell 30 cents, or 8.2%, to $3.34. Elsewhere in health-care Aphria lost 59 cents, or 3.2%, to $17.96.

Among consumer staples, Village Farms let go of 45 cents, or 3%, to $14.54, while Jamieson Wellness lost 77 cents, or 2%, to $37.90.

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 faded 3.35 points to 929.96.

The 12 TSX subgroups were evenly split, as energy roared ahead 4.2%, materials jumped 1%, and consumer discretionary were 0.5% to the good.

The half-dozen laggard were led downward by information technology, off 0.8%, health-care, ailing 0.7%, and consumer staples, down 0.5%.

ON WALLSTREET

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

The Dow Jones Industrials popped 203.83 points to stop for lunch Wednesday at 33,881.10, a new intraday record

The S&P 500 nicked 0.26 points to 4,141.85, to reach a new all-time high.

The NASDAQ Composite slumped 53.13 points to 13,942.97.

Shares of Goldman Sachs climbed 4.7% 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 gained 4%.

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.

The U.S. Labor Department’s consumer price index came in slightly hotter than expected on Tuesday. The CPI rose 0.6% from the previous month but 2.6% from the same period a year ago. Economists polled by Dow Jones projected the headline index to rise by 0.5% month-over-month and 2.5% year-over-year.

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 $2.71 to $62.89 U.S. a barrel.

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