4:45 p.m. ET: Nasdaq leads equity rally as first quarter earnings kick off

North American equity markets closed the Tuesday trading session solidly in positive territory, with the S&P/TSX Composite Index gaining 182 points, or 1.30 per cent. Indices south of the border posted even stronger performances, with the Dow Jones Industrial average gaining 2.39 per cent, the S&P 500 up 3.06 per cent and the Nasdaq Composite Index finishing the day near sessions highs, up 3.95 per cent.

The Nasdaq’s outperformance was aided by a pair of tech titans, with shares of Amazon.com Inc. rising 5.28 per cent a new record high and Netflix Inc. closing out the day just shy of a closing record with a 4.24 per cent gain. Both companies are seen as well-positioned to benefit from stay-at-home directives issued to help stem the spread of COVID-19.

U.S. financials came under pressure as JPMorgan Chase & Co. and Wells Fargo & Co. offered an early glimpse into how the virus outbreak is impacting the big U.S. banks with their first quarter earnings reports. Both banks dramatically increased their loan loss provisions to levels not seen since the financial crisis in order to protect against borrowers being unable to meet their obligations. Shares of JPMorgan finished 2.74 per cent lower, while Wells Fargo fell about four per cent.

In Toronto, all 11 TSX subgroups finished in positive territory, led by information technology, health care and industrials. Point-of-sale software firm Lightspeed POS Inc. and e-commerce platform provider Shopify Inc. were the standout performers, both notching double-digit gains.

Shares of Lightspeed are up 47 per cent in the last seven trading sessions from the recent low, while Shopify shares are up 26 per cent from their April 2 low.

Crude oil was under pressure, with U.S. West Texas Intermediate falling as much as nine per cent. WTI was trading at about US$20.75 per barrel at 4 p.m. ET. The record-breaking OPEC+ deal to cut global production by 9.7 million barrels per day has failed to lift crude due to concerns it won’t be nearly enough to address the demand destruction caused by the forced hibernation of the global economy in the face of the virus. Alberta’s Western Canadian Select closed the day higher at US$5.71 per barrel after earlier falling below US$3. Canadian crude is priced a handful of times per day.

The Canadian dollar was up modestly against it’s U.S. counterpart, with the loonie hovering around 72 cents U.S.

1:50 p.m. ET: North American markets bounce off session lows, Nasdaq leads

North American equity markets continued to trade in positive territory in the early afternoon, with benchmark indices on both sides of the border bouncing off the lows of the session. The S&P/TSX Composite Index rose about 1.3 per cent, while major U.S. markets were up between two and three-and-a-half per cent, led by the tech-heavy Nasdaq Composite Index.

The Nasdaq got a boost from a pair of tech titans, with Amazon.com Inc. and Netflix Inc. hitting new record highs. The pair are considered well-positioned for the current work-at-home, self-isolation environment, as more consumers order goods online and stream video as they limit outside contact.

In Toronto, all eleven TSX subgroups were in positive territory, with information technology, health care and materials posting the largest percentage gains. Tech components Lightspeed POS Inc. and Shopify Inc. were the largest percentage leaders on the benchmark composite.

American crude oil prices plumbed session lows, with West Texas Intermediate dropping about seven per cent to fall below US$21 per barrel. Alberta’s Western Canadian Select extended gains to trade at just shy of US$6.50 per barrel, though Canadian crude is priced sporadically. WCS fell as low as US$2.76 per barrel in early trading.

The Canadian dollar was essentially unchanged against the U.S. dollar at 71.91 cents U.S.

11:35 a.m. ET: Equity markets pare gains as first-quarter earnings kick off

North American equity markets held in positive territory through the late morning, with the S&P/TSX Composite, the S&P 500, Dow Jones Industrial Average and Nasdaq Composite Index in the green, though off the highs of the day.

In Toronto, nine of the 11 TSX subgroups were in positive territory, with info tech, real estate and consumer staples posting the largest percentage gains. Energy and financials were the only sectors in the red.

JPMorgan Chase & Co. and Wells Fargo & Co. erased earlier gains after the latter pulled its net interest income forecast due to uncertainty stemming from the COVID-19 outbreak. Shares in both banks fell more than four per cent, pressuring the U.S. financials sector.

American crude prices came under further pressure, with benchmark West Texas Intermediate falling more than five per cent to trade around US$21 per barrel amid global economic concerns. Alberta’s Western Canadian Select rose 39 per cent to US$5.51 per barrel, though Canadian crude only prices a handful of times per day, leading to sometimes volatile moves.

The Canadian dollar was little changed against its U.S. counterpart, with the loonie at about 71.87 cents U.S., though both currencies were broadly weaker against their developed-market peers.

9:40 a.m. ET: Stocks rally as first-quarter earnings season kicks off

North American equity markets were solidly in positive territory in early Tuesday trading, with the S&P/TSX Composite Index, the S&P 500, Dow Jones Industrial Average and Nasdaq Composite Index all rising about two per cent at the opening bells.

Investors on both sides of the border are getting set for one of the most uncertain earnings seasons in recent memory, with a pair of big U.S. banks giving an early glimpse of what could be in store.

JPMorgan Chase & Co. was first out of the gate, reporting net income fell 69 per cent in the first quarter to the lowest level in more than six years. The company set aside US$8.29 billion dollars to deal with loans potentially going sour as the COVID-19 virus outbreak drags on. There was a bright spot, as the bank’s trading desk booked record revenue in the quarter amid volatile market conditions. JPMorgan shares rose about two per cent at the open.

It was a similar story at Wells Fargo & Co., where net income plunged nearly 90 per cent in the first quarter. The bank’s loan loss provisions surged to US$4 billion to deal with the virus outbreak. Shares rose one-and-a-half per cent in early trading.

In Toronto trading, shares of Cameco Corp. rose modestly in spite of the company’s decision to extend its production suspension at its Cigar Lake uranium mine. That decision appeared to be a bigger factor in the movement of some other uranium producers, helping NexGen Energy Ltd. and Energy Fuels Inc. rank among the top performers in Toronto.

Oil prices were under pressure, with West Texas Intermediate falling about four per cent to about US$21.50 per barrel amid continued concerns the agreed upon OPEC+ supply cuts won’t be enough to mitigate a collapse in global crude demand.

The Canadian dollar was little changed against its U.S. counterpart, leaving the loonie at 71.98 cents U.S.