Stocks Have Jump in Their Step

Shaw Again in News

Equities in Canada’s largest centre opened higher on Tuesday, aided by gains in resources-linked shares, while easing COVID-19 restrictions in the world's number-two economy, China, raised hopes for stronger growth.

The S&P/TSX continued its upward momentum, gathering 214.36 points, or 1.1%, to open Tuesday at 19,472.68.

The Canadian dollar added 0.18 cents to 77.86 cents U.S.

Atlantic Equities cut the price target on Canadian Pacific Railway to $106.00 from $111.00. CP shares climbed $1.39, or 1.5%, to $92.36.

Credit Suisse cut the target price on Lundin Mining to $9.50 from $11.50. Lundin shares picked up 21 cents, or 2.4%, to $9.01.

Scotiabank assumes coverage on Shaw Communications with a sector perform rating. Shaw shares nicked up five cents to $38.04.

ON BAYSTREET

The TSX Venture Exchange gained 3.86 points to open Tuesday at 656.22.

All but one of the 12 TSX subgroups made gains, led by energy, up 2.4%, real-estate, progressing 1.5%, and consumer discretionary stocks, better by 1.4%.

Gold proved the lone dissenter, falling 0.4%.

ON WALLSTREET

Stocks rose on Tuesday following a losing day as the market attempted to keep its rebound from the bear-market lows going.

The Dow Jones Industrials recovered 200.39 points to 31,638.65.

The S&P 500 surged 18.86 points to 3,918.97.

The NASDAQ Composite notched forward 8.73 points to 11,533.28.

Major averages cut gains after disappointing economic data. Consumer confidence index fell to a reading of 98.7, down from 103.2 in May and missing a Dow Jones estimate of 100, according to The Conference Board.

On Tuesday, China relaxed its COVID restrictions for inbound travelers, cutting their quarantine time upon arrival by half to seven days. That gave travel and casino stocks a lift.

Wynn Resorts and Las Vegas Sands rose more than 7% each. United jumped 6%, while American and Delta Air Lines added more than 5% each.

Disney shares also rose more than 3% after the company announced its Shanghai Disneyland will reopen this week.

Several major banks raised their dividends in response to successfully clearing this year’s Federal Reserve stress tests, including Bank of America, Morgan Stanley and Goldman Sachs.

JPMorgan and Citigroup, however, said increasingly stringent capital requirements forced them to keep their dividends unchanged. Morgan Stanley shares gained nearly 4%.

Treasury prices were lower, raising yields to 3.22% from Monday’s 3.20%. Treasury prices and yields move in opposite directions.

Oil prices jumped $1.61 to $111.18 U.S. a barrel.

Gold prices faded $1.40 to $1,823.40 U.S. an ounce.