Stocks Remain Above Water by Noon - InvestingChannel

Stocks Remain Above Water by Noon

Canada’s main stock index edged higher on Wednesday, supported by gains in tech stocks, while the Bank of Canada kept its interest rate unchanged but provided no clarity on the timing of potential interest rate cuts.

The TSX Composite advanced 65.58 points, midway through Wednesday at 21,100.27.

The Canadian dollar sank 0.12 cents at 74.18 cents U.S.

Among individual stocks, Capstone Copper climbed 32 cents, or 5.1%, to $6.56, after announcing its production figures for 2023 and outlook for 2024.

Blackberry tumbled 89 cents, or 18.5%, to the bottom of TSX at $3.91, and hit a near four-year low after it announced a private offering of $160 million in five-year convertible bonds on Tuesday.

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The central bank also said it is continuing its policy of quantitative tightening.

ON BAYSTREET

The TSX Venture Exchange squeezed ahead 2.93 points to move into noon hour EST at 554.29.

Seven of the 12 subgroups lost ground by noon, with gold down 1.7%, materials, off 0.9%, and health-care, shedding 0.6%.

The five gainers were led by energy, up 1.2%, financials, up 0.6%, and consumer staples, ahead 0.4%.

ON WALLSTREET

Stocks rose Wednesday as Netflix led a broader rally among technology names, pushing the broader market to new heights.

The Dow Jones Industrials rallied 128.26 points to 38,033.71.

The S&P 500 index gained 33.54 points to 4,898.14.

The NASDAQ triumphed 168.12 points, or 1.1%, to 15,594.06.

Netflix shares surged 12% after the streamer said its total subscriber count hit an all-time high of 260.8 million. Revenue topped analysts’ estimates, as did current-quarter earnings guidance.

Elsewhere, Microsoft rose more than 1%, sending its market value above the $3-trillion level for the first time. The software stock joins Apple as the only two companies with a total market cap above that size.

Both gains added to mega-cap tech’s strong performance in 2024, which have propelled the S&P 500 to record highs and confirmed a new bull market. Communication services and information technology stocks boosted the broad index on Wednesday, with both sectors up more than 1%.

Beyond technology, AT&T slipped more than 2% on lower-than-expected earnings. Dupont De Nemours tumbled more than 11% after preannouncing weak fourth-quarter results and issuing disappointing first-quarter guidance.

Earnings reports will remain a focus of traders, with Tesla, Las Vegas Sands and IBM due after the bell. Of the more than 16% of S&P 500 companies that have reported quarterly financials thus far in the earnings season, over 71% have surpassed Wall Street expectations.

On the economic front, traders will be looking toward data on fourth quarter gross domestic product and the closely watched personal consumption expenditures price index expected later in the week.

Prices for the 10-year Treasury sagged, raising yields to 4.15% from Tuesday’s 4.14%. Treasury prices and yields move in opposite directions.

Oil prices regained $1.34 to $75.71 U.S. a barrel.

Gold prices dropped $10.60 to $2,015.20.

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