Equities in Canada’s largest centre rose to a seven-week high on Wednesday, buoyed by a rise in oil prices and easing of coronavirus-driven lockdowns in some countries.
The S&P/TSX Composite Index popped 351.88 points, or 2.4%, to break for lunch hour Wednesday at 15,150.17.
The Canadian dollar increased 0.43 cents to 71.86 cents U.S.
The largest percentage gainers on the TSX were Celestica, which jumped $1.08, or 14.9%, to $8.31, after it reported Q1 revenue and profit above Wall Street expectations and Norbord, which rose $1.65, or 7.7%., to $23.22
Kinross Gold fell 15 cents, or 1.6%, the most on the TSX, to $9.48. The second biggest decliner was Metro, down $1.60, or 2.7%, to $57.75.
The most heavily traded shares by volume were Bombardier, up a nickel, or 11.6%, to 48 cents, Athabasca Oil, up 1.5 cents, or 13.6%, to 12.5 cents, and Baytex Energy, up five cents, or 1.3%, to 42.5 cents
ON BAYSTREET
The TSX Venture Exchange gained 3.15 points to 474.04.
All but three of 12 TSX subgroups gained in the first hour, with energy virtually exploding 8.6%, consumer discretionary and financials stocks each up 3.6%.
The three laggards were gold, down 1.6%, consumer staples, off 1.4%, and materials, swooning 0.3%.
ON WALLSTREET
Stocks jumped Wednesday on the back of positive data from a potential coronavirus treatment from Gilead Sciences, while investors digested a sharp drop in U.S. economic activity.
The Dow Jones Industrial Average popped 500.19 points, or 2.1%, to 24,601.74,
The S&P 500 hopped 69.62 points, or 2.4%, to 2,933.01.
The NASDAQ Composite screamed higher 265.57 points, or 3.1%, to 8,873.30.
A study of Gilead’s remdesivir drug conducted by the National Institute of Allergy and Infectious Diseases met its primary endpoint, the drugmaker said, lifting expectations for a potential coronavirus treatment.
Gilead also released the results of its own study, which showed improvement in patients taking remdesivir to treat the virus. Gilead shares jumped 4.2% after a brief halt in the pre-market.
Sentiment was also lifted as Alphabet shares gained 8.6% after the tech giant reported a revenue growth decline that was less steep than forecast. The company’s YouTube ad revenues also beat expectations.
Other mega-cap tech stocks such as Facebook climbed 6.2%. Amazon gained 2.1% while Apple advanced 3.2%.
The Gilead news along with the strong move higher from Alphabet offset news of a steep drop in U.S. economic activity. U.S. GDP shrank by 4.8% in the first quarter for the country’s biggest contraction since the financial crisis.
Wall Street awaited the latest monetary policy announcement from the Federal Reserve, scheduled for Wednesday at 2 p.m.
Prices for the 10-Year Treasury gained, lowering yields to 0.61% from Tuesday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices soared $3.95 to $16.29 U.S. a barrel.
Gold prices dropped $6.30 to $1,715.90 U.S. an ounce.
