Small Gains for TSX at Open

Lundin, OceanaGold in Focus

Equities in Canada’s largest centre rose on Wednesday, after government data showed the domestic economy expanded in July, bolstering optimism around a post-coronavirus recovery.

The TSX raised itself 25.89 points to begin Wednesday at 16,237.41.

The Canadian dollar eked higher 0.01 cents to 74.72 cents U.S.

Cowen & Co raised the rating on Canada Goose Holdings to outperform from market perform. Canada Goose shares jumped $2.32, or 8.1%, to $42.98.

Scotiabank cut the target price on Lundin Mining to $8.75 from $9.00. Lundin shares took on 44 cents, or 6.2%, to $7.50.

OceanaGold fell 26 cents, or 11.5%, the most on the TSX, to $2.00, while the second-biggest decliner was Osisko Mining,
down 13 cents, or 3.6%, to $3.47.

On the economic slate, Statistics Canada says the economy climbed during July, with the Gross Domestic Product figure growing 3%, as all 20 industrial sectors increased in the month.


The TSX Venture Exchange dipped 1.23 points to 711.31.

Eight of the 12 TSX subgroups were positive in the first hour, with health-care haler 1.5%, information technology, up 0.9%, and consumer discretionary issues ahead 0.7%.

The four laggards were weighed most by gold, down 1.5%, materials, sifting off 0.9%, and communications, down 0.2%.


U.S. stocks climbed on Wednesday, the last day of September, amid rising hopes for further fiscal stimulus. The market is still on track for its first negative month since March.

The Dow Jones Industrial Average recovered from Tuesday’s negative readings, and then some, ballooning 379.17 points, or 1.4%, to begin trading Wednesday at 27,831.83.

The S&P 500 recovered 36.24 points, or 1.1%, to 3,371.71.

The NASDAQ popped 131.89 points, or 1.2%, to 11,217.13.

Stocks sensitive to the economic recovery, including airlines, banks and cruise operators, led the market rally on Wednesday. Shares of American Airlines and United climbed more than 3% each, while Boeing also rose 2.6%. JPMorgan, Goldman Sachs and Citigroup all gained at least 1%. Norwegian Cruise popped more than 7%.

Positive data regarding a potential coronavirus treatment from Regeneron Pharmaceuticals helped boost sentiment on Wall Street.
Regeneron said after the close Tuesday its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

Regeneron shares rose 1% on Wednesday.

Disney shares lost more than 1% after the company said it would lay off 28,000 people in its theme parks division.

Still, with today’s early gains, major averages are headed for steep losses in September and their first monthly declines since March. The S&P 500 is down 4.7% this month through Tuesday’s close, on pace for its first down month in six. The Dow tumbled 3.4%, and the NASDAQ has fallen 5.9% in September.

U.S. Treasury Secretary Steven Mnuchin struck an optimistic tone about reaching a coronavirus aid deal on Wednesday after the stalemate in Washington dragged on for weeks.

The gains also came after better-than-expected jobs data. ADP’s monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey.

Investors digested the first debate between President Donald Trump and Democratic nominee Joe Biden Tuesday evening, which turned out to be particularly vicious with constant interruptions and insults. Wall Street remained concerned that it will be a drawn-out electoral process that could hit the market.

Prices for the 10-Year Treasury sagged, raising yields to 0.68% from Tuesday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices bumped up 21 cents to $39.50 U.S. a barrel.

Gold prices dropped $11.10 to $1,892.10 U.S. an ounce.