Surge Continues for TSX at Tuesday Open
Trade Figures, IVEY in Vogue
Canada's main stock index hit a one-week high on Tuesday, underpinned by gains in energy shares, as concerns around the Omicron coronavirus variant eased.
The S&P/TSX Composite picked up Tuesday where it left off Monday, popping 302.48 points, or 1.5%, to 21,163.58
The Canadian dollar gained 0.34 cents at 78.35 cents U.S.
Enbridge gained 83 cents, or 1.7%, to $49.13, after the pipeline operator forecast higher core earnings in 2022 and announced a share repurchase of up to $1.5 billion, betting on rising demand for oil and gas.
Dye & Durham spiked $3.61, or 8.5%, to $45.86, first thing Tuesday, was after multiple brokerages raised the price target on the IT service provider's stock.
RBC raised the target price on Bank of Montreal to $154.00 from $146.00. BMO shares grabbed $1.02 to $138.91.
BMO raised the rating on Canadian Western Bank to outperform from market perform. Canadian Western shares vaulted 63 cents, or 1.7%, to $37.66.
CIBC cut the target price on First Quantum Minerals to $37.00 from $38.50. First Quantum shares raced $1.14, or 4.1%, to $29.19.
On the economic calendar, Statistics Canada reported that Canada's merchandise exports were up 6.4% in October, while imports rose 5.3%. Canada's merchandise trade surplus widened from $1.4 billion in September to $2.1 billion in October, the largest surplus so far in 2021.
Also this morning Western University's IVEY School of Business said its purchasing managers index jumped to 61.2 in November, up from 59.3 in October, and much higher than the 52.7 figure posted in November 2020.
The TSX Venture Exchange jumped 17.89 points, or 2%, to 915.59.
All but one of the 12 TSX subgroups were positive in the first hour Tuesday, with energy rumbling 3.6% , information technology better by 2.7%, and health-care up 2.4%.
Only gold pointed lower, 0.5% at that.
Stocks jumped for a second day, continuing their rebound from a recent rough patch, as investors grew less fearful of the potential economic impact from the new omicron coronavirus variant.
The Dow Jones Industrials roared higher 534.02 points, or 1.5%, to start Tuesday at 35,7671,95
The S&P 500 index jumped 92.14 points, or 2%, to 4,683.81.
The NASDAQ spiked 417.63 points, or 2.7%, at 15,642.78.
Chipmaker stocks were the early winners, with Intel leaping 6% and NVIDIA up 2%, following news that Intel is planning to take its self-driving car unit, Mobileye, public in mid-2022.
British drugmaker GlaxoSmithKline said new data shows its monoclonal antibodies treatment is effective in treating the omicron variant. Its shares rose slightly.
Casino stocks also were hot, as Las Vegas Sands rose 2%, while cruise lines also gained on the enthusiasm that omicron may pose less of a threat than feared. Norwegian Cruise Line Holdings jumped about 4%.
Apple shares rose 2% following a call from Morgan Stanley, which maintained its outperform rating on the stock but heightened its price target on it to $200, citing the company's commitment to developing augmented and virtual reality technology.
Elsewhere Tesla shares gained more than 3% despite news that the company had to replace cameras in three of its models. UBS said the electric carmaker will be the dominant force in the industry and raised its price target.
Prices for 10-year Treasurys fell slightly, raising yields to 1.45% from Monday's 1.44%. Treasury prices and yields move in opposite directions.
Oil prices muscled higher $2.39 to $71.88 U.S. a barrel.
Gold prices gained $3.30 to $1,782.80 U.S. an ounce.
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