Equities in Canada’s largest centre opened higher on Wednesday, lifted by energy stocks as oil prices gained on signs of improving demand and a drawdown in U.S. crude inventories.
The S&P/TSX Composite Index climbed 139.28 points to open Wednesday at 15,024.76.
The Canadian dollar gathered 34 cents to 72.08 cents U.S.
Canaccord Genuity cut the target price on Bank of Montreal to $73.00 from $106.00. BMO shares added $1.02, or 1.6%, to $66.24.
Canaccord Genuity raised the target price on Canadian Western Bank to $24.00 from $22.00. Western Bank shares grew 27 cents, or 1.3%, to $21.03.
Canaccord Genuity cut the target price on Royal Bank of Canada to $86.50 from $110.00. Shares in Canada’s largest bank leaped $1.48, or 1.8%, to $85.21.
CIBC cut the target price on Cervus Equipment Corp. to $8.00 from $9.50. Cervus stumbled out of the gate 17 cents, or 2.5%, to $6.62.
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 added 4.84 points to 532.65.
All but two of the 12 TSX subgroups were positive, with energy pumping higher 3.2%, industrials, stronger by 1.5%, and financials, richer by 1.4%,
The two laggards were gold, doffing 0.5%, and materials, dwindling 0.04%.
ON WALLSTREET
Stocks rose sharply on Wednesday, lifted in part by solid retail earnings, as traders continue to grapple with the market’s wild moves from this week.
The Dow Jones Industrials rebounded in a big way, taking on 357.43 points, or 1.5%, to begin Wednesday trading at 24,564.29.
The S&P 500 regained 46.44 points, or 1.6%, to 2,969.46.
The NASDAQ rocketed 162.03 points, or 1.6%, to 9,347.14.
The Dow is down slightly more than 15% and the S&P 500 is about 9.5% in 2020. The NASDAQ is still hanging on to its positive 2.4% gain for the year.
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 3.1%.
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.
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.
Prices for the 10-Year Treasury slid, raising yields to 0.71% from Tuesday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices added $1.23 to $33.19 U.S. a barrel.
Gold prices acquired nine dollars to $1,754.60 U.S. an ounce.
