Canada's main stock index opened slightly higher on Wednesday, rebounding from the previous session's selloff, as energy and mining stocks were lifted by stronger commodities.
The S&P/TSX Composite recovered 16.7 points, to open Wednesday to 21,291.27.
The Canadian dollar was up 0.03 cents to 80.03 cents U.S.
CIBC raised the target price on AutoCanada to $49.00 from $48.50. AutoCanada shares remained at the $40.59 perch at which they’d been at Tuesday’s close.
CIBC initiated coverage on Cameco Corp. with an outperform rating and $37.00 price target. Cameco shares gained 22 cents to $27.24.
Jefferies raised the target price on First Quantum Minerals to $45.00 from $40.00. First Quantum shares jumped $1.04, or 3%, to $35.36.
On the macroeconomic front, Statistics Canada reported that its consumer price index rose 4.8% on a year-over-year basis in December, up from a 4.7% gain in November.
On a monthly basis, the CPI rose 0.3% in December.
Moreover, wholesale sales grew for the fourth consecutive month, up 3.5% in November.
Elsewhere, British Columbia’s top health official said the westernmost province will allow gyms to open from Thursday, but other restrictions will stay in place until Feb. 16 as the health-care system continues to be impacted by COVID-19.
ON BAYSTREET
The TSX Venture Exchange regained 5.91 points to 896.77.
The 12 TSX subgroups were evenly split in the first hour, with gold leading the pack, up 2.3%, materials ahead 1.8%, and information technology better by 1.6%.
The half-dozen laggards were weighed most by consumer discretionary stocks, fading 1%, while financials and health-care each gave back 0.9%.
ON WALLSTREET
The major averages rose for the first time in four days on Wednesday as several strong earnings reports lifted sentiment on Wall Street.
The Dow Jones Industrials nicked ahead 1.02 points to 35,369.49, helped by a 4% jump in Procter & Gamble’s stock
The S&P 500 recovered 12.42 points to 4,589.53,
The NASDAQ Composite came out of the abyss and gained 108.82 points to 14,615.71.
Stocks were boosted by a slew of strong corporate earnings results. Bank of America beat Wall Street estimates as it released pandemic-related loan loss reserves. Shares rebounded 4%, a day after sliding 3.4%.
Morgan Stanley saw its stock rise 3.2% after the bank’s fourth-quarter profit topped estimates. It also experienced a 13% jump in equities trading revenue.
Procter & Gamble shares popped 4% after the consumer giant reported fiscal second-quarter earnings and revenue that topped Wall Street’s expectations. The company raised its outlook for sales growth.
Earnings season is picking up on Wall Street and so far the majority of companies have surpassed analyst expectations. Of the 44 S&P 500 companies that have reported quarterly results, nearly 73% have topped Wall Street’s expectations.
On the negative side, home builders also were broadly lower following after KeyBanc downgraded the group on concerns over looming interest rate hikes that will drive up borrowing costs. KB Home lost 1.7%, Lennar fell 1.6% and D.R. Horton fell 1.7%.
Shares of Sony tumbled 3.8% the day after Microsoft said it is buying video game publisher Activision Blizzard for nearly $69 billion. Sony’s PlayStation competes with Microsoft’s Xbox consoles. The drop in Sony’s stock comes after shares slid 7.2% on Tuesday.
Prices for 10-year Treasurys gained strength, lowering yields to 1.85% from Tuesday’s 1.87%. Treasury prices and yields move in opposite directions.
Oil prices added $1.26 to $86.69 U.S. a barrel.
Gold prices jumped $25.20 to $1,837.60 U.S. an ounce.
