Mini-Recovery for TSX

Tesla in News

Equity markets in Canada’s largest centre opened higher on Tuesday, tracking gains in global equity markets following a selloff in the previous session, as oil prices rose on expectations of stable fuel demand if coronavirus lockdowns were imposed again.

The TSX climbed out of Monday’s gutter, claiming 65.82 points to 16,047.59.

The Canadian dollar fell 0.01 cents to 75.17 cents U.S.

Premier John Horgan says British Columbia will hold an election on Saturday, Oct. 24, making it the largest province in Canada so far to hold a vote during the pandemic.

Oil prices rose as analysts took the view renewed lockdown restrictions would have only a limited impact on fuel demand, partly reversing a steep drop in prices the previous day.

ON BAYSTREET

The TSX Venture Exchange squirted higher 0.73 points to 720.59.

All but two of the 12 TSX subgroups reversed course in the first hour and turned positive, with energy gushing 1.7%, consumer staples up 0.9%, and utilities took on 0.7%.

The two gainers proved to be health-care, sliding 0.7%, and information technology dipped 0.1%.

ON WALLSTREET

Stocks south of the line rose slightly on Tuesday, recovering some of the steep losses from the previous session as shares of Big Tech advanced.

The Dow Jones Industrial Average recovered 25.08 points to 27,172.78.

The S&P 500 reattached 13.78 points to 3,294.84.

The NASDAQ re-strengthened 42.63 points to 10,821.43.

Amazon shares rose 1.6% after a Bernstein analyst upgraded the e-commerce giant to buy from hold, noting the recent pullback offers an attractive "entry point" for investors. Facebook, Apple and Microsoft were also higher.

Shares of Tesla dropped 3.4% after CEO Elon Musk said in a tweet that the electric carmaker’s “Battery Day” event would not reach “serious high-volume production” until 2022, which disappointed investors and analysts.

Traders also digested remarks by Federal Reserve Chairman Jerome Powell, who reiterated the central bank will support the economy "for as long as it takes."

Gains were kept in check, however, after U.K. Prime Minister Boris Johnson announced further restrictions to curb the spread of the virus. He noted the country was at a "perilous turning point" and ordered bars and restaurants to close between 10 p.m. and 5 a.m. The restrictions also expand on the list of places requiring people wear a mask.

The market’s September sell-off intensified on Monday with the Dow suffering its worst day since Sept. 8. The S&P 500 lost 1.2%, posting its first four-day losing streak since February.

Prices for the 10-Year Treasury were static, keeping yields at Monday’s 0.67%.

Oil prices added 18 cents to $39.49 U.S. a barrel.

Gold prices gained seven dollars to $1,917.60 U.S. an ounce.