TSX to Make Another Assault on 20K
June 02, 2021 at 09:37 AM EDT
Wednesday, June 2, 2021 08:37 AM EST TSX to Make Another Assault on 20K Building Permits in Picture Futures for Canada's main stock index rose on Wednesday as oil prices gained after the Organization of the Petroleum Exporting Countries and its allies agreed to stick to their plan of gradually easing supply curbs through July. The TSX popped 248.69 points, or 1.3%, Tuesday to close at yet another high of 19,979.68. The Canadian dollar was unchanged Wednesday at 82.84 cents U.S. June futures poked ahead 0.1% Wednesday. BMO raises target price on Scotiabank to $93.00 from $88.00. MKM Partners cut target price on Canopy Growth to $51.00 from $55.00. Even as Canadian businesses prepare to reopen gradually this summer after a year of intermittent lockdowns, banks are wary about the prospects of a fast uptick in credit growth as an economic recovery remains patchy and cautious commercial clients hold on to record amounts of cash hoarded during the pandemic. On the economic calendar, Statistics Canada says building permits edged down 0.5% to $11.1 billion, following the record set in March. ON BAYSTREET The TSX Venture Exchange gained a respectable 2.53 points to 971.16. ON WALLSTREET U.S. stock index futures were little changed on Wednesday, following muted action on the first day of June. Futures for the Dow Jones Industrials gained 33 points, or 0.1%, to 34,582. Futures for the S&P 500 acquired 3.25 points, or 0.1%, to 4,201.75. Futures for the NASDAQ Composite eked up six points to 13,654.75. The threat of inflation is keeping U.S. stocks below, yet within reach, of their all-time high. Stocks tied to the economic reopening were a bit weaker in pre-market trading. United Airlines and American Airlines shares were slightly lower. Carnival Corp and some retailers were also lower in early trading. AMC shares were surging again, up another 25% in pre-market trading. The meme stock was up 22% on Tuesday after raising $230.5 million through a stock sale. June is historically a weak month for stocks, but Instinet points out that the S&P 500 has had a better track record recently, gaining every June since 2016. Overseas, in Japan, the Nikkei 225 gained 0.5% Wednesday, while in Hong Kong, the Hang Seng index faded 0.6%. Oil prices added 57 cents to $68.29 U.S. a barrel. Gold prices picked up a dollar to $1,906 U.S.