Energy stocks helped markets in Toronto open higher on Tuesday, as oil prices gained after an unexpected commitment from Saudi Arabia to deepen production cuts in June to help drain a supply glut built up during the coronavirus crisis.
The S&P/TSX Composite Index advanced 20.49 points to open Tuesday day to 15,123.71.
The Canadian dollar slid 0.05 cents to 71.31 cents U.S.
Alstom plans to stick to the terms of its previously agreed rail deal with Bombardier, Chairman and Chief Executive Henri Poupart-Lafarge told a conference call on Tuesday.
Bombardier shares acquired a penny, or 2.3%, to 44 cents.
Tim Hortons said Tuesday it received an investment from Chinese tech giant Tencent, as the Canadian coffee brewer seeks to expand in the Chinese market.
Popeyes, also owned by Restaurant Brands International Inc, is forging ahead with the opening of its first outlet in China despite the coronavirus outbreak and plans to set up "a few more" by the end of the year in several Chinese cities, its executives said on Tuesday.
Restaurant Brands shares gained $1.06, or 1.4%, to $74.79.
National Bank of Canada cut the rating on BRP Inc. to sector perform from outperform. BRP shares lost 64 cents, or 1.6%, to $39.91.
National Bank of Canada cut the rating on Pinnacle Renewable Energy to sector perform from outperform. Pinnacle plunged in price $1.35, or 20%, to $5.39.
Jefferies initiated coverage on TCP Energy with a hold rating, and $68 target price. TCP shares picked up 46 cents to $66.31.
Global alarm was sounded on Monday over a potential second wave of coronavirus cases after Germany, relatively successful in slowing the outbreak, reported that infections had accelerated again after the first tentative steps to ease the lockdown in the country.
ON BAYSTREET
The TSX Venture Exchange vaulted 6.06 points, or 1.2%, to 501.26.
Seven of the 12 TSX subgroups started Tuesday positive, with energy jumping 1.5%, gold brightening 1.4%, and materials better by 0.9%.
The five laggards were weighed most by health-care, down 1.7%, real-estate, off 1.4%, and information technology 0.9% to the bad.
ON WALLSTREET
Stocks struggled in early trading Tuesday as investors evaluated the latest attempts to reopen the economy.
The Dow Jones Industrials gained 85.95 points to 24,307.94.
The S&P 500 sank 0.44 points to 2,929.88.
The tech-heavy index NASDAQ eked lower 1.77 points to 9,190.58. The tech-heavy NASDAQ entered the session riding a six-session winning streak.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, and other health officials are testifying before the Senate Health Committee to discuss reopening the economy. Fauci will say that reopening too quickly by states will cause “needless suffering and death,” according to the New York Times.
New York Gov. Andrew Cuomo said Monday the state’s restrictions on certain low-risk businesses and activities will lift on Friday. The World Health Organization said several countries that eased coronavirus restrictions, including China, have seen increases in the number of positive COVID-19 cases.
Despite the risks, stocks that would benefit most from reopening the economy led gains Tuesday. Mall owner Simon Property Group, Marriott and Wynn Resorts were all higher.
Shares of Apple were 1.2% higher as tech stocks extended their winning ways.
Investors continued to pile into tech firms whose businesses proved to have the most resilient in the age of coronavirus crisis. Shares of Amazon and Netflix both soared more than 30% this year, while Microsoft gained 18%. Chipmaker Nvidia hit a fresh all-time high on
Tuesday, bringing its 2020 gains to 38%.
Prices for the 10-Year Treasury gained, lowering yields to 0.70% from Monday’s 0.71%. Treasury prices and yields move in opposite directions.
Oil prices picked up $1.17 to $25.31 U.S. a barrel.
Gold prices increased $11.70 to $1,709.70 U.S. an ounce.
