Futures for equities in Canada’s largest market rose on Wednesday as oil prices firmed up on signs of improving demand, supported by hopes for further fiscal and monetary stimulus.
The S&P/TSX Composite Index came off its highs of Tuesday morning, but still popped 246.58 points, or 1.7%, to close the first day of a short week at 14,885.48.
The Canadian dollar gained 0.29 cents early Wednesday to 72.03 cents U.S.
June futures climbed 1.1% Tuesday.
Canaccord Genuity cut the target price on Bank of Montreal to $73.00 from $106.00
Canaccord Genuity raised the target price on Canadian Western Bank to $24.00 from $22.00
CIBC cut the target price on Cervus Equipment Corp. to $8.00 from $9.50.
Canaccord Genuity cut the target price on Royal Bank of Canada to $86.50 from $110.00
Scotiabank cut the target price on to $16.00 from $17.25
On the economic front, Statistics Canada reported wholesale sales fell 2.2% to $63.9 billion in March, following three consecutive monthly gains, while April’s CPI fell 0.2% on a year-over-year basis, down from a 0.9% increase in March. On a seasonally adjusted monthly basis, the CPI fell 0.7% in April, following a 0.9% decline in March.
ON BAYSTREET
The TSX Venture Exchange leaped 18.86 points, or 3.7%, Tuesday to 527.85.
ON WALLSTREET
Stock futures pointed to a solid opening for the market on Wednesday morning.
Futures for Dow Jones Industrials rocketed 298 points, or 1.2%, early Wednesday to 24,456.
Futures for the S&P 500 hiked 35.5 points, or 1.2%, at 2,954.25.
Futures for the NASDAQ Composite jumped 102.25 points, or 1.1%, to 9.403.
Strong results amid a lockdown from Lowe’s helped market sentiment. The home improvement retailer reported a same-store sales increase for the first quarter of 11.2%. The shares jumped 7% in pre-market trading.
In another sign of economic activity amid the pandemic, Target said a surge in digital sales fueled a 10.8% increase in same-store sales last quarter. The shares, which are up 13% in the last one month, fell slightly in pre-market trading.
Investors continue to watch how the reopening of states is going and so far there doesn’t appear to be major spikes in the virus. Oil continued to trade higher on Wednesday as traders bet on more driving activity.
Data compiled by Johns Hopkins University shows more than 4.9 million cases have been confirmed worldwide, with over 1.5 million of those infections in the U.S. alone.
The Federal Reserve is set to release its meeting minutes at 2 pm ET.
Overseas, in Tokyo, the Nikkei 225 picked up 0.8%, Wednesday, while in Hong Kong, the Hang Sang index eked up 0.1%.
Oil prices added 68 cents to $32.64 U.S. a barrel.
Gold prices brightened $9.20 to $1,754.80.
