Energy stocks pushed Canada's main stock index higher on Wednesday, as oil prices surged to their highest level since early March after data showed a big drop in U.S. crude inventories.
The S&P/TSX Composite Index jumped 129.28 points to 16,497.31.
The Canadian dollar climbed 0.32 cents to 75.52 cents U.S.
The largest percentage gainers on the TSX were oil producers Crescent Point Energy, up 15 cents, or 6.8%, to $2.37, and Seven Generations Energy which rose 18 cents, or 4.6%, to $4.11.
WPT Industrial Real Estate Investment Trust fell 19 cents, or 1%, the most on the TSX, to $18.65, whereas another would-be loser, Torex Gold, recovered from negative territory to reclaim 68 cents, or 2.8%, to $25.31.
On the economic calendar, Statistics Canada said Canadian merchandise imports and exports rebounded sharply in June, mostly on the strength of motor vehicles and parts.
The agency added imports rose 21.8% and exports were up 17.1%. Canada's merchandise trade deficit with the world widened from $1.3 billion in May to $3.2 billion in June.
ON BAYSTREET
The TSX Venture Exchange vaulted 16.22 points, or 2.2%, to reach noon Wednesday at 757.59.
Seven of the 12 TSX subgroups gained ground in the first hour, led by energy, gushing 4.2%, materials, better by 2.1%, and gold, 2% to the good.
The five laggards were weighed down mostly by utilities, sagging 0.7%, health-care, ailing 0.3%, and communications, down 0.2%.
ON WALLSTREET
Stocks rose on Wednesday on the back of coronavirus vaccine hopes and strong earnings from Disney. However, gains were capped as July private payrolls data disappointed and lawmakers continued negotiations on a new virus stimulus package.
The Dow Jones Industrials popped 329.45 points, or 1.2%, to 27,157.92.
The S&P 500 gained 18.57 points to 3,325.70.
The NASDAQ progressed 31.9 points to a record high of 10,973.83.
Both the Dow and S&P 500 were on pace to post their fourth consecutive daily gains. The NASDAQ was headed for a six-day winning streak.
Johnson & Johnson announced it struck a $1 billion deal with the U.S. government to manufacture 100 million doses of its coronavirus vaccine candidate if it proves successful. J&J shares rose 0.9%. Novavax shares jumped 14.3% after the company reported phase one vaccine trial results that showed a positive immune response among patients.
Better-than-expected earnings from Disney also helped sentiment on Wall Street. The theme park and media giant earned a profit of eight cents per share, while analysts expected a loss of 64 cents per share. Disney said it now has 100 million paid subscribers across its streaming services, which include Disney+, Hulu and ESPN+.
Disney shares popped 10.7%.
ADP reported Wednesday that private payrolls in the U.S. increased by just 167,000 in July. That’s well below a Dow Jones estimate of one million and represents a tumble from the 4.314 million added in June.
The ADP report is seen as a preview to the government’s monthly jobs report, which is forecast to show a gain of more than 1.2 million jobs’
The Institute for Supply Management’s non-manufacturing Purchasing Managers Index showed a bigger-than-expected expansion in the U.S. services sector, coming in at 58.1. Economists polled by Dow Jones expected a print of 55.
Traders also grappled with continuing talks in Washington over a new coronavirus stimulus package.
The White House and Democratic congressional leaders have reported some progress in the negotiations, but they remain apart on some issues.
Prices for the 10-Year Treasury dropped sharply, raising yields to 0.55% from Tuesday’s 0.51%. Treasury prices and yields move in opposite directions.
Oil prices piled on $1.40 to $43.10 U.S. a barrel.
Gold prices leaped $36.80 to $2,057.80 U.S. an ounce.
