Equities in Canada’s largest centre opened higher on Tuesday as energy stocks gained nearly 4% on signs of improving demand for crude oil, while signs of more economic stimulus and rising U.S. retail sales bolstered sentiment.
The S&P/TSX Composite Index gained 280.33 points, or 1.8%, to 15,639.99.
The Canadian dollar eked up 0.03 cents at 73.90 cents U.S.
RBC raised the rating on Canwel Building Materials Group to outperform from sector perform. Canwel rocketed 21 cents a share, or 5.1%, to $4.36.
Evercore ISI starts coverage on Enbridge with an outperform rating and a price target $55. Enbridge shares picked up a dollar, or 2.4%, to $43.25.
Evercore ISI starts coverage on TC Energy with an outperform rating and a price target of $75. TC shares took on $1.42, or 2.4%, to $60.87.
On the economic beat, Statistics Canada said foreign investment in Canadian securities reached a record-high of $49 billion in April, all in debt securities.
Meanwhile, Canadian divestment in foreign securities eased considerably to $134 million.
ON BAYSTREET
The TSX Venture Exchange gathered 6.47 points, or 1.2%, to 566.82.
All 12 TSX subgroups raced out of the chute in the first hour, with energy rumbling 3.7%, communications ahead 2.5%, and financials up 2.4%.
ON WALLSTREET
Stocks surged on Tuesday as a record jump in retail sales — coupled with positive trial results from a potential coronavirus treatment and hopes of more stimulus — sent market sentiment soaring.
The Dow Jones Industrials roared ahead 734.20 points, or 2.9% to 26,497.36.
The S&P 500 soared 80.50 points, or 2.6%, to 3,147.09.
The NASDAQ leaped 224.47 points, or 2.3%, to 9,950.50.
The U.S. government reported a record 17.7% increase in retail sales for May. Economists polled by Dow Jones expected a gain of 7.7%.
Meanwhile, multiple reports said dexamethasone — a widely available drug — can help critically-ill cornavirus patients. The treatment reportedly reduced COVID-19 deaths in hospitalized patients by up to one third.
Shares of companies that would benefit from the economy reopening led the gains. United, Delta and American Airlines all rose at least 6.5%. Norwegian Cruise Line, Carnival and Royal Caribbean jumped more than 7% each. MGM Resorts moved higher 5.6%, Kohl’s gained 11.4%, and Simon Property advanced 7.2%.
Sentiment was also lifted after reports the Trump administration is drawing up a $1 trillion infrastructure proposal.
The reports said a preliminary version being prepared would set aside the majority of the money for traditional infrastructure projects such as roads and bridges, though funds would also be reserved for 5G wireless infrastructure and rural broadband.
Prices for the 10-Year Treasury fell hard, boosting yields to 0.77% from Monday’s 0.71%. Treasury prices and yields move in opposite directions.
Oil prices prospered $1.76 to $38.88 U.S. a barrel.
Gold prices picked up 20 cents to $1,727.40 U.S. an ounce.
