Stocks Wrap up Successful Week

Energy Pops, Gold Fade

Stocks in Canada’s largest market moved solidly into the plus column Friday, largely on the strength of energy concerns.

The S&P/TSX Composite Index gained 145.18 points to finish out Friday and the week at 15,713.82. On the week, the gain was 117 points, or 0.75%.

The Canadian dollar skidded 0.07 cents at 73.54 cents U.S.

Enerplus led a parade of strengthening energy plays, picking up 25 cents, or 8.2%, to $3.29, while Vermilion Energy raced ahead 44 cents, or 8%, to $5.92.

In health-care, Canopy Growth popped $1.70, or 7.8%, to $23.58, while Cronos Group tacked on 33 cents, or 4%, to $8.54.

Financials also fared well, as Industrial Alliance climbed $1.48, or 3.5%, to $43.98, while Genworth MIC added 91 cents, or 2.9%, to $32.31.

Gold let the side down a bit, though, with Wesdome Gold trailing 34 cents, or 2.5%, to $13.33, and Kirkland Lake Gold off $1.30, or 2.1%, to $62.26.

Elsewhere in resources, SilverCrest Metals docked 39 cents, or 3.1%, to $12.29, while Agnico Eagle Mines dawdled $1.76, or 2%, to $88.31.

In tech issues, Lightspeed POS faded $1.12, or 3.1%, to $35.58, while Photon Control lost four cents, ro 2.1%, to $1.86.

In the economic docket, Statistics Canada reported the economy gained back 953,000 jobs in June, for a 3.5% increase, with gains split between full-time work (488,000 or 3.5%) and part-time work (465,000 or 17.9%).

Even with consecutive increases in May and June, employment in June was still 1.8 million (or 9.2%) lower than in February, before the outbreak hit this country.

A survey of economists says the economic recovery underway in Canada will be stronger in the near-term than expected a few months ago. Economists said a resurgence in coronavirus infections and high unemployment were the two biggest risks.

Also, Canada is preparing to dial back emergency income support for people laid off due to COVID-19 in favour of more traditional unemployment benefits and will shift resources to a wage subsidy program that encourages employers to rehire staff.

ON BAYSTREET

The TSX Venture Exchange surged 12.75 points, or 1.9%, to 684.71. Over the last five sessions, the index climbed an amazing 51.7 points, or 8.17%.

All but three of the 12 TSX subgroups were higher Friday, with energy gushing 2.8%, health-care surging 2.1%, and financials richer by 1.8%.

The three laggards were gold, down 1.1%, information technology, off 1%, and materials, tailing 0.3%.

ON WALLSTREET

Stocks rose Friday as news about a potential coronavirus treatment increased hope for an economic recovery following the outbreak.

The Dow Jones Industrials galloped 369.21 points, or 1.4%, to 26,075.30.

The S&P 500 forged ahead 32.99 points, or 1.1%, to 3,185.04

The tech-heavy NASDAQ vaulted 69.69 points to 10,617.44, yet another new record high, lifted by Amazon and Netflix.

Friday’s gains put the Dow up 0.9% for the week. The S&P 500 and NASDAQ were up 1.7% and 4.0% in that time period. For the year, the Dow is down 8.6%, and the S&P 500 has retreated 1.4%, while the tech-heavy NASDAQ is up more than 18%.

Gilead Sciences said its coronavirus treatment candidate, remdesivir, showed an improvement in clinical recovery and a 62% reduction in the risk of mortality compared with standard care. The news sent Gilead shares up more than 2%.

BioNTech’s CEO also told The Wall Street Journal the company’s coronavirus vaccine candidate could be ready for approval by December.

Shares of companies that would benefit from the reopening outperformed. American Airlines flew 6.8% and United popped 8.2%,, while Delta traded 5.6% higher. Cruise operator Carnival surged 10.8% after the company said it can break even in cash flow with capacity between 30% and 50%.

Netflix jumped 8% to a record after Goldman said it now sees a 30% rally over the next 12 months for the company. Amazon also gained 0.5% to an all-time high after Citi hiked its target on the e-commerce giant to a Street high of $3,550 per share.

JPMorgan was the biggest gainer in the 30-stock Dow, jumping 5.4%. Dow-component Goldman Sachs also rose 4.4%. Meanwhile, Citigroup gained 6.4%, and Wells Fargo rallied 5.9%. Big banks are set to kick off earnings season next week.

To be sure, some investors remain concerned as new coronavirus cases continue to pile up. The U.S. reported Thursday more than 63,000 additional coronavirus cases, a record. The country’s seven-day average now stands at more than 53,000 cases.

Prices for the 10-Year Treasury faded, raising yields back to 0.64% from Thursday’s 0.61%. Treasury prices and yields move in opposite directions.

Oil prices regained 88 cents to $40.50 U.S. a barrel.

Gold prices dropped $1.50 to $1,802.30 U.S. an ounce.