New Highs for TSX

Equities in Canada’s largest stock market hit all-time highs on Wednesday, driven by energy stocks as oil prices jumped on optimism over fewer new coronavirus cases, while Shopify shot up 20% on upbeat quarterly earnings.

The TSX Composite Index raced ahead 46.16 points in Wednesday’s first hour of trading to at 17,823.27

The Canadian dollar gained 0.18 cents to 75.42 cents U.S.

Shopify was the biggest percentage gainer on the TSX – spiking $84.24, or 12.9%, to $739.70, after posting better-than-expected quarterly earnings and forecasting full-year revenue above Wall Street estimates.

The second-biggest gainer was West Fraser Timber, up $3.85, or 6.6%, to $62.13, on production improvement forecast.

Pretium Resources fell $2.63, or 20.7%, the most on the TSX, to $10.09, after quarterly results. Russel Metals fell 74 cents, or 3.3%, to $21.81, after reporting a quarterly loss.

Cenovus Energy posted a surprise loss on Wednesday as weak refining margins muted benefit from higher production and more sales in the United States. Cenovus picked up nine cents to $12.07.

Altacorp Capital raised the target price on Mainstreet Equity to $100 from $90. Mainstreet shares were static at $85.00.

CIBC raised the target price on Martinrea International to $17.00 from $16.00. Martinrea shares advanced 11 cents to $13.12.

Credit Suisse raised the target price on Norbord Inc. to $45.00 from $42.00. Norbord shares jumped $1.73, or 4.2%, to $43.14.

ON BAYSTREET

The TSX Venture Exchange faded 0.5 points to lead off Wednesday at 572.62.

All but three of the 12 TSX subgroups were lower, with gold down 1.1%, consumer staples sliding 0.7%, and utilities off 0.6%

The three gainers were information technology, clicking 3.5% higher, energy, rumbling 1.3%, and consumer discretionary stocks up 0.2%.

ON WALLSTREET

Stocks rose on Wednesday as investors tried to shake off concerns over how the coronavirus would impact corporate profits and the global economy.

The Dow Jones Industrials popped 207.94 points to 29,484.28, and hit a record.

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The S&P 500 catapulted 14.63 points at 3,372.38, also reaching an all-time high.

The NASDAQ jumped 36.47 points to 9,675.41.

As of Tuesday night, China’s National Health Commission had reported 97 additional deaths with total confirmed cases passing 44,000. However, the pace of new reported cases appears to be slowing down as they hit their lowest levels since late January.

Wynn Resorts and Las Vegas Sands, two stocks tied to coronavirus worries because of their exposure to the Chinese market, each rose more than 1%. Those gains follow an upgrade from a Bank of America analyst who recommended buying the stock because coronavirus cases were “leveling out.”

Delta lifted off 1.6%, and American Airlines climbed 2%.

Corporate earnings remained in focus after Lyft reported more than $1 billion in quarterly revenue, but forecast slower growth in 2020. Lyft shares slid 6.9%.

CVS Health, Molson Coors, Teva Pharmaceutical and Shopify all reported quarterly results that beat analyst expectations. About 70% of S&P 500 companies have posted calendar fourth-quarter results. Of those companies, 71.1% have beaten analyst expectations

Federal Reserve Chairman Jerome Powell on Tuesday testified in front of the House Financial Services Committee that the American economy is in a good place, but that the central bank is “closely monitoring” the potential global economic fallout from the virus.

Powell is scheduled to testify again in front of the Senate Banking Committee starting at 9:30 a.m.

Prices for the 10-Year U.S. Treasury fell, raising yields to 1.63% from Tuesday’s 1.6%. Treasury prices and yields move in opposite directions.

Oil prices picked up $1.75 to $51.69 U.S. a barrel.

Gold prices dipped $1.90 to $1,568.20 U.S. an ounce.