Rallies All Around - InvestingChannel

Rallies All Around

Equities in Canada’s largest market joined their brethren worldwide in rallying Monday, buoyed by hopes that the pace of coronavirus cases is at least slowing down.

The S&P/TSX Composite Index gained 221.75 points, or 1.5%, to end Monday at 14,642.11

The Canadian dollar surged 0.36 cents to 71.20 cents U.S.

Health-care concerns proved the champion on Monday, with Canopy Growth hiking $2.73, or 12.5%, to $24.61, while HEXO gained seven cents, or 10.3%, to 75 cents.

Real-estate also climbed, as Northwest Health-Care Properties REIT units acquired 67 cents, or 7.5%, to $9.81, while CT REIT saw its units gather $1.04, or 8.5%, to $13.29.

Among utilities, Brookfield Renewable Partners jumped $4.01, or 6.6%, to $64.89, while Transalta Renewables took on 89 cents, or 6.2%, to $15.17.

Gold faded, however, as Centerra Gold docked 50 cents, or 4.1%, to $11.84, while Kinross Gold unloaded 21 cents, or 2.1%, to $9.78.

Consumer staples took some bruising, as Northwest Company shed 77 cents,or 2.8%, to $26.31, while Empire Company gave back 71 cents, or 2.1%, to $32.74.

Tech stocks went south, as Shopify fell $24.78, or 2.7%, to $883.83, while Sierra Wireless dropped 20 cents, or 1.6%, to $12.64.

Canada’s top medical official said on Sunday she was encouraged the coronavirus death toll was slowing while Prime Minister Justin Trudeau said isolation measures to fight the outbreak should remain for the time being.

Trudeau also said plans underway to restart the economies of Canadian provinces do not depend on presuming people who become infected with coronavirus develop immunity to it.

ON BAYSTREET

The TSX Venture Exchange added 7.8 points, or 1.7%, to 470.44.

Eight of 12 TSX subgroups stayed positive, with health-care galloping 7.6%, real-estate picking up 4.7%, and utilities stronger by 3%.

The four laggards were weighed mostly by gold, down 0.8%, consumer staples, off 0.4%, and information technology, sliding 0.3%.

ON WALLSTREET

Stocks rose on Monday as investors cheered the possibility of reopening the economy after the coronavirus outbreak.

The Dow Jones Industrial Average rumbled higher 358.51 points, or 1.5%, to 24,133.78.

Monday’s gains put the S&P 500 on pace for its biggest one-month gain since 1987 with an 11.4% surge in April. The Dow is up 10.1% month to date; that would be its best monthly performance since 2002.

The S&P 500 strengthened 41.74 points, or 1.5%, to 2,878.48

The NASDAQ Composite hiked 95.64 points, or 1.1%, to 8,730.16.

PMorgan Chase and Disney were the best-performing Dow stocks, rising more than 4% each. The financials sector led the S&P 500 higher, climbing more than 3%. Citigroup shares rallied more than 6% while Wells Fargo and Bank of America were each up over 4%.

Stocks that would benefit most from an economic reopening led the way higher on Monday. MGM Resorts and Carnival both climbed more than 8%. Gap popped 12.9%, and Kohl’s gained 17.7%.

States including Alaska, Georgia, South Carolina, Tennessee and Texas are beginning to allow restaurants and other establishments to serve customers.

New York Gov. Andrew Cuomo said Sunday the state plans to re-open its economy in phases. The first phase, Cuomo said, would involve New York’s construction and manufacturing sectors. As part of the second phase, businesses will need to design plans for a re-opening that include social distancing practices and having personal protective equipment available.

Cuomo also noted that coronavirus-related hospitalizations have fallen for 14 days and that virus deaths in New York hit a near one-month low.

Still, coronavirus shelter-in-place orders and social distancing guidelines remain Wall Street’s number-one concern as the rules keep thousands of businesses closed. Officials have confirmed nearly three million COVID-19 cases worldwide with over 900,000 in the U.S., according to data from Johns Hopkins University.

Prices for the 10-Year Treasury sank, lifting yields to 0.66% from Friday’s 0.59%. Treasury prices and yields move in opposite directions.

Oil prices shed $3.92 to $13.02 U.S. a barrel.

Gold prices slumped 10 dollars to $1,725.60 U.S. an ounce.