Canada's main stock index opened higher on Wednesday on gains in energy shares, but those of the world's largest marijuana producer Canopy Growth sank after its co-chief executive officer, Bruce Linton, said he was fired from the company.
The S&P/TSX Composite Index improved 34.4 points to open Wednesday at 16,505.69.
The Canadian dollar tacked on 0.18 cents to 76.49 cents U.S.
The stock, which trades under the symbol WEED,
Energy distributor UGI Corp said on Tuesday it would buy some assets of Columbia Midstream Group from pipeline operator TC Energy Corp for about $1.28 billion to expand its midstream business.
TC shares picked up 73 cents, or 1.1%, to $65.34.
National Bank of Canada raised the rating on Cascades Inc. to outperform from sector perform. Cascades vaulted 39 cents, or 3.5%, to $11.67.
National Bank of Canada raised the target price on Dollarama to $52.00 from $49.00. Dollarama shares garnered 78 cents, or 1.6%, to $48.54.
RBC initiated coverage on Tervita Corp. with sector perform rating and $9.00 price target. Tervita shares moved downward 11 cents, or 1.7%, to $6.53
On the economic calendar, Statistics Canada noted that exports rose 4.6% in May, while imports increased 1.0%.
Thus, this country’s merchandise trade balance with the world was in a surplus position in May for the second time since December 2016. The $762-million surplus in May followed a $1.1 billion deficit in April.
ON BAYSTREET
The TSX Venture Exchange drifted off 0.05 points to 585.42
Eight of the 12 Toronto subgroups were positive by the closing bell, information technology adding 1.4%, communications better by 1.2%, and industrials heading higher 1.1%.
The four laggards were weighed most by energy, down 1.4%, health-care off 1.3%, gold, sliding 1%, and consumer discretionary stocks, 0.3% to the bad.
ON WALLSTREET
Stocks opened slightly higher on Wednesday as investors bet on a potential rate cut from the Federal Reserve later this month after the release of weaker-than-expected economic data.
The Dow Jones Industrial Average gained 65.6 points to begin the session at 26,852.28, and broke above its all-time closing record
The S&P 500 added 9.64 points and posted a record closing high at 2,982.65, as utilities and consumer staples outperformed.
The NASDAQ Composite gained 29.98 points to 8,139.07
Wednesday’s session ends at 1 p.m. ET due to the Fourth of July holiday.
In corporate news, Tesla shares jumped more than 6% after the auto maker reported record delivery and production numbers. Meanwhile, Symantec surged 15% on news the company is in talks to be acquired by Broadcom. The two companies are targeting an announcement by mid-July.
Private payrolls in the U.S. increased by 102,000 in June, ADP and Moody’s Analytics said. Economists polled by Dow Jones expected growth of 135,000.
The disappointing data strengthens the Fed’s case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it will "act as appropriate" to maintain the current economic expansion.
Prices for the benchmark 10-year U.S. Treasury were higher, lowering yields to 1.95%, from Tuesday’s 1.98%. Treasury prices and yields move in opposite directions.
Oil prices were up 65 cents to $56.90 U.S. a barrel.
Gold prices were up $12.70 to $1,420.70 U.S. an ounce.
