Canada's main stock index rose to a seven-week high on Tuesday, with oil stocks in the lead, on rising optimism over signs of easing lockdowns imposed to contain the coronavirus pandemic.
The S&P/TSX Composite Index came off its highs of the morning, but still kept gains of 109.51 points to reach noon Tuesday at 14,751.62.
The Canadian dollar increased 0.17 cents to 71.45 cents U.S.
The largest percentage gainers on the TSX were Lightspeed POS Inc, which jumped $1.31, or 6%, to $23.31, and BRP Inc, which rose $3.07, or 8.7%, to $38.52.
Extendicare Inc fell 34 cents, or 5%, the most on the TSX, to $6.41.
The second biggest decliner was Barrick Gold, down 80 cents, or 2.1%, to $37.00, after Papua New Guinea threatened to take control of a gold mine operated by Barrick in the country after its local unit suspended operations at the weekend following news the mine's lease would not be renewed.
The most heavily traded shares by volume were Royal Bank of Canada, up $1.25, or 1.5%, to $86.20, while Bank of Montreal was up $1.58, or 2.3%, to $71.39. Katanga Mining was flat at 15.5 cents.
In corporate news, The Yield Growth Corp. announced its wholly-owned subsidiary, Jack n Jane Essentials Inc., signed a definitive agreement on April 27, with licensed producer Argentia Gold Corporation for the manufacture and distribution of Jack n Jane branded cannabis products in Canada.
The agreement includes 35 products to be launched over a two-year term. Shares in Yield Growth were flat by noon EDT at 17 cents
Floods have forced mandatory evacuations in parts of Fort McMurray, the hub for Canada’s oil sands industry, even as the province of Alberta tries to stem the spread of the coronavirus.
ON BAYSTREET
The TSX Venture Exchange subtracted 2.49 points to 467.93.
Seven of 12 TSX subgroups gained midday, with energy gushing 3.6%, consumer discretionary stocks ahead 1.8%, and financials up 1.6%.
The five laggards were led by health-care, tumbling 2.6%, gold, down 1.7%, and materials, off 1.1%.
ON WALLSTREET
Stocks gave back most their earlier gains on Tuesday as a decline in tech shares offset some of the enthusiasm around the prospect of states reopening the U.S. economy.
The Dow Jones Industrial Average came off its highs of the morning, but was ahead of Monday’s close by 60.85 points, to 24,194.63, still putting the index on pace for its first five-day winning streak since January.
The S&P 500 squeezed 0.84 points to 2,879.32
The NASDAQ Composite skidded 58.04 points to 8,722.78.
Facebook and Alphabet both traded at least 1% lower. Amazon slid 2.1% while Netflix pulled back 3.5%. Apple shares traded 0.5% lower.
A partial reopening of the economy — in Alaska, Georgia, South Carolina, Tennessee, Texas, and others — boosted investor sentiment, with certain U.S. businesses poised to benefit from the first wave of consumers emerging from the coronavirus driven quarantine.
Stocks that would benefit the most from a reopening led the market higher on Monday and were up again Tuesday. Shares of Wynn, Simon Property Group and Kohl’s were all higher by at least 1.8% after big gains on Monday. Bank stocks such as Citigroup and JPMorgan also rose more than 3% each.
Investors are also digesting the busiest week of earnings season, with 145 S&P 500 companies reporting between Monday and Friday. A quarter of the way through earnings season companies have proved the coronavirus is weighing heavy on corporate profits.
Prices for the 10-Year Treasury regained some of its strength, lowering yields to 0.62% from Monday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices faded 91 cents to $11.87 U.S. a barrel.
Gold prices dropped $4.30 to $1,719.50 U.S. an ounce.
