Equities in Toronto on Tuesday climbed out of a deep hole in which it hadn’t sat for four years, helped by a broader recovery in equities, even as concerns over the economic impact of the coronavirus outbreak weigh on markets.
The TSX Composite Index came off its highs of the day, but still enjoyed a sizable leap of 324.81 points, or 6.2%, to end Tuesday at 12,685.21
The Canadian dollar fell 1.1 cents at 70.27 cents U.S.
Among gold stocks, Seabridge Gold jumped $2.60, or 26.7%, to $12.35, while Osisko Gold Royalties triumphed $2.21, or 26.5%, to $10.55.
Materials hiked, too, as Silvercorp Metals acquired $1.05, or 36.1%, to $3.96, while MAG Silver spiking $2.29, or 28.2%, to $10.42.
Communications sailed, too, as Cogeco Communications picked up $10.96, to 11.2%, to $108.52, while TELUS prospered $3.36, or 8.3%, to $43.97.
Energy clung to the same malady that’s had the sector stuck in negative country, with Imperial Oil docking $2.56, or 16.9%, to $12.61, while MEG Energy slid 28 cents, or 14.8%, to $1.61.
In the consumer discretionary sector, BRP Inc. was in reverse $4.02, or 11.6%, to $30.51, while Gildan Activewear retreated $2.08, or 10.1%, to $18.44.
In real-estate, Colliers International Group faded $8.67, or 11.5%, to $66.95, while Dream Office REIT units tailed off $1.55, or 7.2%, to $19.96.
On the economic calendar, Statistics Canada said manufacturing sales were down 0.2% to $56.1 billion in January, the fifth consecutive monthly decline.
Moreover, the agency said, foreign investors acquired $17.0 billion of Canadian securities in January.
Meanwhile, Canadian investors reduced their holdings of foreign securities by $9.1 billion, following acquisitions of $13.8 billion in December 2019
ON BAYSTREET
The TSX Venture Exchange tacked on 8.26 points, or 2.3%, to 374.72.
Eight of the 12 TSX subgroups were in the green on the day, with gold shining 11.5% brighter, materials stronger by 8.4%, and communications up 6.7%
The four laggards were weighed mostly by energy, down 9.3%, consumer discretionary, fading 3.4%, and real-estate, off 0.7%. .
ON WALLSTREET
Stocks surged Tuesday — rebounding from their worst day in more than three decades — as Wall Street cheered White House plans that could inject $1 trillion into the U.S. economy to cushion the blow of the coronavirus.
The Dow Jones Industrials leaped 1,048.86 points, or 5.2%, to 21,237.38.
The broader S&P 500 gained 143.06 points, or 6%, to 2,529.19.
The NASDAQ spiked 430.19 points, or 6.2%, to 7,334.78, recovering from its worst day ever.
Amazon shares jumped 7% after an analyst at Bank of America noted the e-commerce giant will benefit from the global “in-home shift” due to the coronavirus. Netflix climbed 7% as well while Apple closed 4.3% higher.
Biotech giant Regeneron, meanwhile, said Tuesday morning that it’s aiming to have doses of a potential drug for COVID-19 ready to start human clinical trials by early summer. The announcement, which represents a marked acceleration in the company’s drug timeline, sparked a 11.5% rally in the company’s equity.
The Trump administration is weighing a fiscal stimulus package of more than $1 trillion that includes direct payments to Americans, according to a source familiar with the matter. Earlier, Treasury Secretary Steven Mnuchin told reporters the government is considering directly sending checks to Americans in the next two weeks. "Americans need cash now," he said.
Mnuchin added corporations will be able to defer tax payments of up to $10 million while individuals could defer up to $1 million in payments to the Internal Revenue Service. Mnuchin also said President Donald Trump authorized the deferral of $300 billion in IRS payments.
More than 5,700 cases have been confirmed in the U.S. along with more than 90 deaths, according to data from Johns Hopkins University. President Donald Trump also said the crisis could stretch into August, adding the administration may look at locking down “certain areas.”
Prices for the 10-Year U.S. Treasury collapsed, raising yields to 1.08% from Monday’s 0.75%. Treasury prices and yields move in opposite directions.
Oil prices dipped $2.01 to $26.69 U.S. a barrel.
Gold prices recovered $43.00 to $1,529.50 U.S. an ounce.
Stocks Zoom on Stimulus Package to Fight Virus
