Equities in Canada’s largest market rose on Wednesday, boosted by a surge in energy stocks, as sentiment was lifted by reports of drug breakthroughs in treating the fast-spreading coronavirus.
The TSX Composite Index popped 140.93 points to greet noon EST Wednesday at 17,653.66
The Canadian dollar lopped 0.06 cents to 75.21 cents U.S.
The largest percentage gainers on the TSX were MEG Energy, which jumped 55 cents, or 8%, to $7.47, and Cenovus Energy, which rose 58 cents, or 5%, to $12.15.
Bombardier fell four cents, or 2.3%, and was the biggest decliner on the TSX, to $1.49, after surging nearly 18% in the previous session on talks to sell business-jet unit to Textron.
The second biggest decliner was NovaGold Resources, down 25 cents, or 2.1%, to $11.82.
ON BAYSTREET
The TSX Venture Exchange regained 3.47 points during Wednesday’s lunch hour to 576.89.
All but two of the 12 TSX subgroups were positive midday, with energy shooting higher 3.5%, materials firing upward 1.2%, and financials, up 0.9%.
The two laggards were information technology, falling 1.2%, and health-care, off 0.5%.
ON WALLSTREET
A plunge in Tesla shares spoiled some of the market’s comeback rally on Wednesday, pushing the NASDAQ Composite well off its session high.
The Dow Jones Industrials popped 284.61 points, or 1%, to 29,092.24. UnitedHealth picked up 4%, and IBM rose 2.8%, to lead the Dow higher.
The S&P 500 gained 23.47 points at 3,321.06. Energy, health care and financials were up more than 1% each to lift the S&P 500.
The NASDAQ forfeited most of its gains of the morning, but still stayed above water 8.23 points to 9,476.21. Tesla traded more than 14% lower a day after rallying more than 13% to a record.
Tesla’s decline came after Wall Street analysts called for caution around the high-flying stock. Tesla is up more than 80% for 2020 even with Wednesday’s drop.
Corporate earnings were also in focus, with a number of companies weighing the impact of the coronavirus on forecasts.
Disney on Tuesday topped first-quarter earnings expectations on both the top and bottom lines, but warned of a $175 million hit to its theme parks as a result of the coronavirus outbreak.
Meanwhile, Ford shares slid on Tuesday after the carmaker posted a fourth-quarter loss and disappointing 2020 guidance, warning of virus-related manufacturing shutdowns.
Earlier on Wednesday, media reports said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus. The reports suggested this was a reason for the move higher in stocks.
Confirmed coronavirus cases in China are near 25,000, claiming the lives of 490 people. President Donald Trump said during Tuesday’s State of the Union address that the U.S. is “working closely” with the Chinese government to contain the virus.
Stocks also rose after ADP and Moody’s Analytics said U.S. private payrolls rose by 291,000 in January. That’s the biggest monthly payrolls gain in nearly five years.
The report from ADP and Moody’s Analytics is often seen as a preview to the government’s official monthly jobs report, which is set for release Friday morning.
Prices for the 10-Year U.S. Treasury dipped, raising yields to 1.64% closer to Tuesday’s 1.6%. Treasury prices and yields move in opposite directions.
Oil prices regained $1.87 to $51.48 U.S. a barrel.
Gold prices picked up $7.30 to $1,562.80 U.S. an ounce.
