Jul 6, 2020
North American markets close higher, Nasdaq hits new record
, BNN Bloomberg
BNN Bloomberg's closing bell update: July 6, 2020
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4:20 p.m. ET: North American markets close higher, Nasdaq hits new record
North American equity markets kicked off the week in positive territory after bullish commentary on stocks from China's state-owned media buoyed global markets. The S&P/TSX Composite Index rose 0.47 per cent, the S&P 500 gained 1.59 per cent, the Dow Jones Industrial Average closed 1.78 per cent higher and the tech-heavy Nasdaq Composite Index rose 2.21 per cent to a new record high.
The Nasdaq was lifted by another strong move higher in shares of Amazon.com Inc. and Tesla Inc. Amazon shares gained 5.77 per cent to close above US$3,000 per share for the first time, and shares of Tesla extended their parabolic rally, gaining 13.48 per cent on the day. Tesla's stock price has surged nearly 43 per cent over the course of the last five trading sessions.
In Toronto, eight of the 11 TSX subgroups finished the day in positive territory, led by health care, consumer discretionary and materials. Only information technology, energy and communications services closed lower. 163 of the composite's 221 constituents ended the day higher.
The push into equities took some of the steam out of traditional safe-haven assets, sending U.S. treasuries lower and a gauge of the U.S. dollar to its weakest level since June 10.
Oil prices were mixed, with U.S. benchmark West Texas Intermediate shedding 0.17 per cent of its value to trade at US$40.58 per barrel, and Alberta's Western Canadian Select rising 5.09 per cent to US$33.21 per barrel.
The Canadian dollar was essentially flat against its American counterpart to trade at 73.85 cents U.S.
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12:20 p.m. ET: North American markets hold onto gains through midday
North American equity markets continued to trade higher through midday, with the S&P/TSX Composite Index rising 0.75 per cent, the S&P 500 1.3 per cent higher, the Dow Jones Industrial Average gaining 1.4 per cent and the Nasdaq Composite Index up 2.2 per cent.
Stocks rose to start the week after Chinese state-owned media struck a bullish tone on the future prospects for equities once the global economy gets to the other side of the COVID-19 pandemic.
Traditional safe-haven assets like the U.S. dollar and treasuries continued to be under pressure as investors flocked to equities.
In Toronto, eight of the 11 TSX subgroups traded in positive territory, led by health care, information technology and consumer discretionary stocks. Only communications services, energy and utilities were lower.
Oil prices regained some lost ground, with U.S. benchmark West Texas Intermediate essentially flat at US$40.60 per barrel after spending time in negative territory earlier in the trading day. Alberta’s Western Canadian Select gained 4.3 per cent to trade at US$32.96 per barrel.
The Canadian dollar was unchanged against its U.S. counterpart at 73.81 cent U.S.
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9:40 a.m. ET: North American equities rally as China stokes market enthusiasm
North American equity markets were in rally mode to start the week, following global indices higher after Chinese state media stoked enthusiasm over markets.
The S&P/TSX Composite Index rose 1.2 per cent, the S&P 500 and Dow Jones Industrial Average gained 1.4 per cent and the tech-heavy Nasdaq Composite Index advanced 1.5 per cent.
The jump in global stocks came after a front-page editorial in China’s Securities Times declared that fostering a healthy bull market in the wake of the pandemic would be paramount to the economy.
In Toronto, the rally was widespread, with all 11 TSX subgroups in positive territory, led by a more than two per cent rise in the information technology sector.
Investors sold some traditional safe-haven assets during the flight to equities, pushing the Japanese Yen, U.S. dollar and U.S. treasuries lower. The Canadian dollar was essentially flat against its U.S. counterpart at 73.80 cents U.S.
Oil prices were under modest pressure, with U.S. benchmark West Texas Intermediate falling 0.9 per cent to US$40.27 per barrel. Alberta’s Western Canadian Select slid a third of a per cent to US$31.49 per barrel.
