TSX Adds to All-Time Peak
June 02, 2021 at 11:35 AM EDT
Wednesday, June 2, 2021 10:35 AM EST TSX Adds to All-Time Peak Canopy Growth in Focus Canada's main stock index opened at a record high on Wednesday, driven by gains in energy stocks as a decision by the Organization of the Petroleum Exporting Countries and their allies gradually to restore crude supply lifted oil prices. The TSX inched 21.7 points over Tuesday’s all-time record to open at 19,997.71. The Canadian dollar eked up 0.03 cents to 82.88 cents U.S. BMO raises target price on Scotiabank to $93.00 from $88.00. Scotiabank shares grew 92 cents, or 1.1%, to $81.80. MKM Partners cut target price on Canopy Growth to $51.00 from $55.00. Canopy Growth shares docked four cents to $29.29. 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 2.83 points to 974.87. Eight of the 12 subgroups were positive in the first hour, with energy soaring 1.1%, information technology up 0.5%, and consumer staples ahead 0.4%. The four laggards were weighed most by consumer discretionary stocks, down 0.6%, materials, sliding 0.5%, and industrials, off 0.3%. ON WALLSTREET The S&P 500 rose slightly on Wednesday, hovering near an all-time high, following its muted start to June. The Dow Jones Industrials leaped 106.15 points to begin mid-week Wednesday at 34,681.46 The S&P 500 captured 12.78 points to 4,214.82. 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. The NASDAQ grabbed 29 points to 13,765.47. Stocks tied to the economic reopening were a bit weaker on Wednesday. Retails Gap, Kohl’s, Nordstrom and Macy’s were lower. MGM Resorts and Wynn Resorts were also in the red. AMC shares were surging again, up another 26%. The meme stock was up 22% on Tuesday after raising $230.5 million through a stock sale. Zoom Video shares popped more than 1% after the company reported blowout earnings on Tuesday. Sales grew 191% in the first quarter. Inflation fears, and the ways in which the Federal Reserve might respond, have weighed on sentiment recently, although the major averages are still hovering around all-time highs. Prices for 10-Year Treasurys strengthened, lowering yields to 1.59% from Tuesday’s 1.63%. Treasury prices and yields move in opposite directions. Oil prices climbed 57 cents to $68.29 U.S. a barrel. Gold prices recovered $1.10 to $1,906.10 U.S. an ounce.