Triple-Digit Gains for TSX at Close - InvestingChannel

Triple-Digit Gains for TSX at Close

Equities in Canada’s largest cemtre sprang back to life Wednesday, largely on the strength of health and energy stocks.

The TSX leaped 181.86 points, or nearly 1%, by Wednesday’s close to 19,356.95.

The Canadian dollar hiked 0.59 cents to 81.20 cents U.S.

Among health-care concerns, Organigram Holdings mushroomed 29 cents, or 9%, to $3.52, while Aphria jumped $1.59, or 8.8%, to $19.70.

Energy issues also moved skyward, primarily Crescent Point Energy, ahead 31 cents, or 6.7%, to $4.94, while MEG Energy collected 46 cents, or 7.2%, to $6.89.

Among techs, Shopify shares vaulted $150.61, or 10.5%, to $1,581.06, while Hut 8 Mining leaped 43 cents, or 6.1%, to $7.07.

Utilities proved the biggest weight on the index Wednesday, with Altagas docking 25 cents, or 1.2%, to $22.19, while Hydro One fell 32 cents, or 1.1%, to $29.56.

In consumer stocks, BRP shed $2.03, or 1.7%, to $115.20, while Gildan Activewear dipped 48 cents, or 1.1%, to $43.16.

Jamieson Wellness slid 55 cents, or 1.4%, to $38.16, while Primo Water Corporation skidded 29 cents, or 1.4%, to $20.66.

On the economic front, Statistics Canada reported retail sales were up 4.8% to $55.1 billion in February. Sales increased in nine of 11 sub-sectors, led by higher sales at motor vehicle and parts dealers and gasoline stations.

Bank of Canada Governor Tiff Macklem says the central bank is expecting strong consumption-led growth in the second half of the year as vaccinations against COVID-19 continue.

ON BAYSTREET

The TSX Venture Exchange gained 4.64 to 951.25.

Seven of the 12 TSX subgroups were higher on the day, with health-care muscling up 4.3%, energy rumbling 3.4%, and information technology up 3.3%.

The five laggards were weighed most by utilities, down 0.5%, while consumer discretionary and consumer staples each lost 0.3%.

ON WALLSTREET

The S&P 500 closed around the flat line on Wednesday after the Federal Reserve left interest rates unchanged in its latest policy decision and hinted that it would keep easy monetary policy where it is for some time despite a strengthening economy and rising inflation.

The Dow Jones Industrials were in the red 164.55 points to close Wednesday at 33,820.38, dragged by a 7.2% drop in Amgen’s stock on disappointing earnings.

Boeing lost nearly 3% after posting its sixth straight quarterly loss, which also weighed on the Dow.

The S&P 500 dipped 3.54 points to 4,183.18

The NASDAQ Composite fell 39.19 points to 14,051.03.

Google parent Alphabet reported better-than-expected earnings after the bell on Tuesday, sending shares of the tech giant up 3%. Alphabet saw its revenues grow 34% from a year ago.

Meanwhile, Microsoft shares dipped 2.8% even after the company topped analyst estimates. Microsoft had its largest revenue growth since 2018, thanks in part to gains in PC sales resulting from coronavirus-driven shortages last year.

Technology darlings Apple and Facebook both report earnings on Wednesday after the bell.

The Fed wrapped up its two-day policy meeting on Wednesday, where the central bank left rates near zero. It upgraded its assessment of the economy and acknowledged inflation was rising.

The S&P 500 traded to its high of the day after Fed Chairman Jerome Powell said at a press conference that it would likely take “some time” before the Fed’s objectives are achieved. Powell also said it is not time yet to begin talking about tapering the Fed’s monthly asset purchases.

Stocks traded off those highs, however, when Powell acknowledged that some asset prices may be high and there may be some frothiness in equity markets.

Elsewhere, President Joe Biden is set to unveil later on Wednesday a $1.8-trillion plan in new spending and tax credits geared toward helping families.

The Biden administration’s new spending plan would hike the top income tax rate to 39.6% for the wealthiest Americans and raise taxes on capital gains to 39.6% for households making more than $1 million, according to senior administration officials. Stocks took a hit initially last week when reports of this tax hike began to surface.

Prices for 10-Year Treasurys were higher, weighing yields to 1.61% from Tuesday’s 1.63%. Treasury prices and yields move in opposite directions.

Oil prices gained 85 cents to $63.79 U.S. a barrel.

Gold prices gained $3.20 to $1,782 U.S. an ounce.

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