Stocks Rise at Open on Materials Sector Boost - InvestingChannel

Stocks Rise at Open on Materials Sector Boost

Equities in Canada’s largest market opened higher on Friday, recovering from the previous session, helped by gains in the materials sector.

The TSX recovered 140.15 points to start the week’s last session at 16,722.33

The Canadian dollar inched up 0.02 cents to 76.14 cents U.S.

Minnesota regulators on Thursday approved key permits for Enbridge’s Line 3 crude pipeline replacement project, paving the way for federal permits from the U.S. Army Corps of Engineers after years of delays.

Enbridge shares tacked on 31 cents to $38.29.

RBC raises target price on Altus Group to $62.00 from $52.00. Altus collapsed $4.28, or 7.4%, to $53.22.

National Bank of Canada raised the rating on Intertape Polymer Group to outperform from sector perform.

Intertape jumped $1.68, or 8.3%, to $21.86.

RBC raised the target price on Spin Master to $34.00 from $31.00. Spin Master acquired 25 cents to $30.58.

ON BAYSTREET

The TSX Venture Exchange gained 5.25 points, or 1%, to 736.39.

All but one of the 12 TSX subgroups were higher in the first hour of trade , as energy soared 2%, while materials picked up 1.6%, and gold was ahead 1.4%.

The lone laggard was in consumer staples, down 0.6%.

ON WALLSTREET

U.S. stocks moved higher on Friday morning as investors bet again on stocks that would benefit from a potential effective vaccine and economic recovery next year.

The Dow Jones Industrials re-strengthened 173.7 points to 29,253.87.

The S&P 500 recovered 20.97 points to 3,557.98

The NASDAQ re-stocked 49.76 points, to 11,759.35.

Shares of Disney gained 3% after reporting better-than-expected results. Shares of Carnival Corp., United Airlines and Boeing rose in early trading, capping big gains for the week.

The Dow entered Friday’s session up 2.7% for the week after Pfizer’s news on Monday that the vaccine it is developing with BioNTech was more than 90% effective in a trial.

This caused a rotation into the cyclical stocks that would benefit from an economic comeback next year. Investors dumped technology shares which have held up during the pandemic.

The pause in the rally this week came as the number of coronavirus cases, and hospitalizations, keeps climbing in the U.S. An analysis of data compiled by Johns Hopkins University showed average daily new cases are up by at least 5% over the past week in at least 47 states.

Hospitalizations, meanwhile, rising in at least 46 states.

Sentiment on Thursday soured even further after Federal Reserve Chairman Jerome Powell said the country’s economic outlook remained uncertain. “With the virus spreading, the next few months could be challenging,” he said.

Prices for the 10-Year Treasury were unchanged, maintaining yields at Thursday’s 0.89%. Treasury prices and yields move in opposite directions.

Oil prices fell 64 cents to $40.48 U.S. a barrel.

Gold prices improved $17.40 to $1,890.70