Futures for stocks on Canada’s major index rose 2% on Tuesday, after a long holiday weekend, as sentiment was lifted by positive data from an early-stage study testing a coronavirus vaccine.
The S&P/TSX Composite Index gained 129.24 points to close Friday at 14,638.90. However, the index was down 327.66 points, or 2.2%, on the last five sessions.
The Canadian dollar made its way upward 0.17 cents early Tuesday to 71.91 cents U.S.
June futures took flight 2.1% Tuesday.
A Papua New Guinea court is set to rule next month on whether Barrick Gold Corp can proceed with a legal challenge over the government’s refusal to extend its lease on the Porgera gold mine.
Prime Minister Justin Trudeau said on Saturday he would look at possible ways to help airlines further, but laid out no new measures after the country’s biggest airline announced mass layoffs due to the coronavirus pandemic.
Air Canada said on Friday it would cut its workforce by up to 60% as the airline tries to save cash amid the COVID-19 pandemic and adjust to a lower level of traffic.
Canaccord Genuity cut the target price on Aurora Cannabis to $24.00 from $27.00
RBC cut the target price on Chorus Aviation to $4.50 from $6.00
National Bank of Canada raised target price on Equinox Gold to $18.50 from $17.50
Canaccord Genuity raised the price target on Onex Corp. to $75.00 from $72.00
ON BAYSTREET
The TSX Venture Exchange hiked 10.75 points, or 2%, to 509.01 Friday, gaining 16.92 points, or 3.44% on the week.
ON WALLSTREET
Stock futures were little changed on Tuesday after the market scored its best session in six weeks a day earlier on rising optimism about a coronavirus vaccine.
Futures for Dow Jones Industrials gained 32 points, or 0.1%, early Tuesday to 24,519.
Futures for the S&P 500 dropped two points, or 0.1%, at 2,946.
Futures for the NASDAQ Composite acquired 18.5 points, or 0.2%, to 9.344.
Home Depot shares lost about 2% in pre-market trading Tuesday after the home improvement retailer said net income last quarter dropped 10.7% due to extra costs related to the pandemic. Although the retailer also said sales increased by 7% for the period.
Meanwhile, Walmart shares gained more than 3% in premarket trading after the retailer reported soaring e-commerce sales in the first quarter.
Tuesday’s muted action followed a strong rally on Wall Street that saw the Dow and S&P 500 both enjoying their biggest one-day gains since April 6. Investors cheered news that an experimental coronavirus vaccine from Moderna showed promising early signs.
The 30-stock Dow jumped more than 900 points, while the S&P 500 closed the day up 3.2%, hitting its highest level since March 6.
On Monday, stocks that would benefit from re-opening the economy led the market higher. Cruise operator Carnival gained 15.2%, while Delta and United Airlines both popped more than 13%.
With Monday’s gains, the S&P 500 has rebounded 32% from its March 23 low, now sitting about 13% below its record high in February.
On Tuesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will testify virtually before the Senate Committee on Banking, Housing, and Urban Affairs in the first required update to Congress on the economic response to the coronavirus pandemic.
Powell is expected to reiterate the central bank’s commitment to using its “full range of tools” aimed at keeping markets functioning and getting money to those in need.
Overseas, in Tokyo, the Nikkei 225 hiked 1.5%, Tuesday, while in Hong Kong, the Hang Sang index hurtled higher 1.9%.
Oil prices moved higher 91 cents to $32.73 U.S. a barrel.
Gold prices took on $1.10 to $1,735.50.