Stocks Make Gains at Wednesday Open

Canada’s main stock index inched lower at the open on Wednesday, despite improvements by energy stocks as oil prices firmed on hopes the Organization of the Petroleum Exporting Countries and its allies will delay a planned increase in output.

The TSX docked 5.09 points to commence Wednesday at 16,942.67.

The Canadian dollar ailed 0.12 cents to 76.42 cents U.S.

British insurance group RSA is backing a 7.2-billion-pound ($9.55 billion U.S.) cash offer from Canada’s Intact Financial and Denmark’s Tryg in one of Europe’s biggest financial takeover bids this year.

Intact shares lost 60 cents to $146.24.

One of the unions on strike at Chile’s Candelaria copper mine, owned by Canada’s Lundin Mining Corp, rejected a contract offer from the company on Tuesday, confirming the work stoppage would continue.

Lundin shares retreated five cents to $9.02.

National Bank of Canada raised the target price on Bank of Montreal to $87.00 from $83.00. BMO shares gained 69 cents to $91.51.

National Bank of Canada raised the price target on Canadian Imperial Bank of Commerce to $111.00. CIBC shares took on 75 cents to $109.64.

National Bank of Canada revised the rating on Teranga Gold to tender from outperform. Teranga shares were unchanged at $14.43.

On the economic slate, Statistics Canada reported the consumer price index – rose 0.7% on a year-over-year basis in October, up from a 0.5% increase in September. The agency added that, on a seasonally-adjusted monthly basis, the CPI rose 0.3% in October, following a 0.1% increase in September.

ON BAYSTREET

The TSX Venture Exchange faded 0.31 points to 737.92.

All but three of the 12 TSX subgroups lower in the first hour, with gold stumbling 1.8%, materials down 1.3%, and consumer staples off 1.1%.

The three gainers were energy, up 2.1%, health-care, better by 1.1%, and financials, ahead 0.6%.

ON WALLSTREET

The Dow Jones Industrial Average rose on Wednesday boosted by a pop in Boeing shares, while investors digested more positive news on the coronavirus vaccine front.

The 30-stock index regained 98.87 points to 29,882.22.

The S&P 500 nicked higher 1.12 points to 3,610.65.

The NASDAQ dropped 38.48 points to 11,860.87, as Apple, Amazon, Microsoft and Alphabet all came under pressure.

Pfizer released the final data on its vaccine candidate with BioNTech, which turned out even better than the initial data. The companies said the vaccine was 95% effective in preventing Covid-19 and fended off severe infection in the trial, adding that it plans to submit an application for emergency use authorization “within days.”

Dow-member Boeing jumped more than 4% as the Federal Aviation Administration lifted its ban on its 737 Max after a 20-month grounding following two deadly crashes.

Meanwhile, Target shares rose about 2% after the retailer’s third quarter earnings topped estimates because of booming digital sales.

Stocks are having a strong month on the back of positive developments about Covid-19 vaccines. The Dow is up more than 12% and the S&P 500 is up more than 10% in November. The NASDAQ is up more than 9%, lagging as investors ditch technology shares for cyclical plays.

Lowe’s shares dropped 6% after the home improvement retailer reported third-quarter earnings and a profit outlook slightly short of estimates.

A slew of other retailers report quarterly earnings on Wednesday, with chipmaker Nvidia, Copa Holdings and L Brands set to release earnings following Wednesday’s session.

Prices for the 10-Year Treasury were unchanged, keeping yields at Tuesday’s 0.87%.

Oil prices picked up 54 cents to $41.97 U.S. a barrel.

Gold prices slipped $10.70 to $1,874.40

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