TSX Stronger at Open


Equities in Canada’s largest market rose on Wednesday, supported by material stocks as gold prices jumped on the back of softer Treasury yields after U.S. Federal Reserve officials downplayed inflation concerns.

The TSX began Wednesday up 85.96 points to 19,650.08.

The Canadian dollar removed 0.28 cents to 82.60 cents U.S.

Bank of Montreal beat analysts’ estimates for second-quarter profit, as the lender set aside lower-than-expected provisions in the quarter.

Bank of Montreal inched up nine cents to $123.69.

National Bank of Canada raised the target price on TFI International to $129.00 from $115.00.

National shares tacked on 30 cents to $94.63.

TD Securities raised the target price on Kelt Exploration to $3.75 from $3.50.

Kelt shares advanced three cents, or 1.1%, to $2.88.

Canadian National Railway rose 69 cents, or 1.7%, to $40.34, after saying it would divest Kansas City Southern’s 70-mile rail line between New Orleans and Baton Rouge to eliminate the only overlap between the two railroad operators.

The largest percentage gainers on the TSX were BlackBerry, which jumped $1.11, or 10.7%, to a three-week high of $11.48, and Teck Resources, rising $1.14, or 4.2, to $28.04, after Deutsche raised the stock’s target price.

ON BAYSTREET

The TSX Venture Exchange moved up again 3.76 points to 958.72.

All 12 subgroups were in positive territory to start the day, led by health-care, better by 1.3%, industrials, up 0.7%, and consumer staples, stronger by 0.6%.

ON WALLSTREET

U.S. stocks rose on Wednesday as shares tied to the economic reopening supported the broader market once again.

The Dow Jones Industrials regained 45.68 points to kick off Wednesday at 34,358.09.

The S&P 500 eked ahead 4.51 points to 4,192.14.

The NASDAQ recovered 47.3 points to 13,704.48.

Shares of companies linked to a recovering economy gained. Carnival Corp rose about 1%. Bank of America shares were also higher. Royal Caribbean jumped 2% and brought its gain this week to 11% after the cruise line operator received approval to begin test cruises with volunteer passengers.

The optimism on the economy comes as U.S. average daily COVID cases fall below 25,000 and as nearly half the U.S. population has received at least one vaccination dose.

Shares of Ford rose more than 2% after the automobile giant said it is increasing its investment in electric vehicles by $30 billion through 2025.

Bitcoin continued its comeback, helping risk sentiment in the financial markets. Bitcoin climbed back above $40,000 on Wednesday, according to Coin Metrics. On May 19, the cryptocurrency hit a low of 30,001.51 following an intraday crash of 30%. Shares of Tesla, a big holder of bitcoin, added 0.5% in premarket trading. Coinbase shares were also higher.

Investors will be keeping an eye on Washington and any developments on an infrastructure compromise that could boost the economy further. Senate Republicans plan to send President Joe Biden a counteroffer this week costs nearly $1 trillion.

Nordstrom shares dropped about 6% in extended trading after the company missed the Street’s first-quarter earnings expectations, while shares of Urban Outfitters jumped more than 7% following better-than-expected quarterly results after the bell.

Chief executives of the country’s largest banks — including JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — are set to testify before the Senate Banking Committee on Wednesday morning.

Dick’s Sporting Goods, American Eagle Outfitters, NVIDIA, Snowflake and other companies are expected to report earnings Wednesday.

Prices for 10-Year Treasurys gained ground, lowering yields to 1.55% from Tuesday’s 1.56%. Treasury prices and yields move in opposite directions.

Oil prices slid 61 cents to $65.46 U.S. a barrel.

Gold prices hiked $5.60 to $1,903.60 U.S. an ounce.

Source

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