TSX Leaps on Re-Opening Relief

Wednesday, May 5, 2021 12:26 PM EST TSX Leaps on Re-Opening Relief Loblaw, Ero in Focus Canada's main stock index rose midday Wednesday, as energy stocks gained tracking crude prices after easing restrictions in the United States and parts of Europe raised hopes of higher fuel demand this summer. The TSX vaulted 127.16 points to reach noon EDT Wednesday at 19,315.29 The Canadian dollar hiked 0.25 cents to 81.54 cents U.S. Loblaw gained $1.24, or 1.8%, to $69.46, after the grocer beat market estimates for quarterly revenue and profit, as its online sales more than doubled on soaring demand from homebound buyers for groceries during the COVID-19 pandemic. The largest percentage gainers on the TSX were Ero Copper, up $1.50, or 6.1%, to $25.97, and Equitable Group, jumping $7.39, or 5.4%, to $143.28, after the companies reported strong quarterly results. Badger Daylighting fell 87 cents, or 2.1%, to $41.08, after the company, which provides excavating services to petroleum and construction industries, posted a loss of 43 cents per share in the first quarter. The second biggest decliner was Pretium Resources Inc, down 46 cents, or 3.4%, to $13.22. Alberta reported its first death of a patient from a rare blood clot condition after receiving the AstraZeneca COVID-19 vaccine. ON BAYSTREET The TSX Venture Exchange was in the plus column 2.94 points to break for lunch Wednesday at 947.43. Eight of the 12 subgroups moved higher in the early afternoon, led by energy, rumbling 3%, industrials, collecting 1%, and consumer staples, better by 0.8%. The four laggards were weighed most by gold, sagging 0.6%, while utilities and health-care were each down 0.5%. ON WALLSTREET U.S. stocks rebounded on Wednesday as strong earnings results and economic optimism pushed the major averages higher as the trading day went on. The Dow Jones Industrials sprang up from negative readings to gain 143.14 points to observe noon hour at 34,276.17. The S&P 500 bounced 21.04 points to 4,185.70. The NASDAQ Composite recovered 81.71 points to 13,715.21, as chip stocks and other major tech companies rebounded. General Motors shares climbed 3.4% in early trading after earnings blew past expectations. Activision Blizzard traded higher by 3% after strong results. Commodity stocks jumped. Chevron, Dow and Caterpillar were the three biggest gainers in the Dow Jones Industrial Average. ConocoPhillips popped more than 5% thanks in part to an upgrade to buy from Bank of America. Exercise equipment maker Peloton fell 9% after announcing a recall of its treadmill product due to safety concerns. U.S. equities hit lows of the day following Treasury Secretary Janet Yellen’s comments that interest rates may have to rise somewhat to keep economy from overheating. Later in the day, the former Fed Chairman tempered her comments somewhat, saying she respects the central bank’s independence and was not trying to influence decision-making there. Private payrolls rose by 742,000 jobs in April, according to ADP. This result was below expectations of 800,000 jobs from economists surveyed by Dow Jones. ADP did revise its March report upward by 48,000 jobs. These numbers come ahead of Friday’s closely-watched jobs report. The IHS Markit U.S. services purchasing managers index came in at 64.7 for April, ahead of the projected reading of 63.3, according to economists surveyed by Dow Jones. The Institute for Supply Management non-manufacturing index came in slightly under expectations at 62.7, however. PMIs are calculated such that readings above 50 represent expansion in an economic sector. Prices for 10-Year Treasurys dipped, raising yields to 1.60% from Tuesday’s 1.59%. Treasury prices and yields move in opposite directions. Oil prices gained 34 cents to $66.03 U.S. a barrel. Gold prices brightened $8.70 to $1,784.70 U.S. an ounce.
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