BNN Bloomberg's closing bell update: May 27, 2020
4:15 p.m. ET: North American equity markets rally into the close
North American equity markets rallied into the closing hours of Wednesday’s trade, with the S&P/TSX Composite up 0.82 per cent, the Nasdaq Composite Index up 0.77 per cent, the S&P 500 1.42 per cent higher and the Dow Jones Industrial Average rallying 2.21 per cent to all close near session highs.
In Toronto, the breadth of the rally was limited, with five of the eleven TSX subgroups closing the session higher. Financials, consumer discretionary and communication stocks added the most points to the rally as markets get into the thick of Canadian bank earnings season. Information technology, materials and health care stocks were the biggest drag on the index.
On a stock-specific basis, financial heavyweights Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia were the largest points contributors. RBC reported before the opening bells Wednesday, while Scotia reported earlier in the week and TD is set to release its results Thursday.
On the flip side, Shopify Inc. was the biggest drag on the market, with shares down about 16 per cent over the last two trading sessions. The tech darling has been battered after briefly overtaking RBC as the largest company by market capitalization on the Canadian market.
Oil prices slid on concerns the Russians could be poised to reopen some production as global economies get back up to speed due to the easing of COVID-19 restrictions, sending U.S. benchmark West Texas Intermediate down 4.25 per cent to trade at US$32.90 per barrel. Alberta’s Western Canadian Select shed 4.04 per cent of its value to trade at US$25.11 per barrel.
The Canadian dollar was essentially unchanged against its American counterpart to trade at 72.65 cents U.S.
1:00 p.m. ET: North American markets mixed into midday trading
North American equity markets were mixed in midday trading, with the S&P/TSX Composite Index down 0.3 per cent, the Nasdaq Composite Index shedding 0.4 per cent of its value, the S&P 500 up 0.3 per cent and the Dow Jones Industrial Average gaining a full per cent.
In Toronto, eight of the 11 TSX subgroups were in negative territory, with information technology, materials and energy acting as the largest drags on the composite. Tech darling Shopify Inc. was again a millstone for the composite, extending its declines to nearly 16 per cent in the last two trading sessions alone.
On the flip side, financials, consumer discretionary and communications were fighting the tide, gaining ground as earnings season nears its conclusion. The gains for the financials were driven by Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia, which were adding the most points to the composite.
Oil prices fell, but were off the lows of the day, with U.S. benchmark West Texas Intermediate off 2.8 per cent to trade at US$33.40 per barrel and Alberta’s Western Canadian Select 2.18 per cent lower to trade at US$25.61 per barrel.
The Canadian dollar was essentially flat against its American counterpart to trade at 72.53 cents U.S.
9:35 a.m. ET: North American equities climb, oil slides in early trading
North American equity markets extended gains in early trading Wednesday, with the S&P/TSX Composite up 0.12 per cent, the Nasdaq Composite gaining two-tenths of a per cent, the S&P 500 up 0.9 per cent and the Dow Jones Industrial Average outperforming its peers, up 1.4 per cent.
The rally has the major U.S. indices back to levels not seen since March, with the S&P 500 back above the psychological 3,000 point level.
In Toronto, big bank earnings season continued, with shares of Royal Bank of Canada up about two-tenths of a per cent, and Bank of Montreal shares sliding nearly seven-tenths of a per cent. The banks set aside a record amount of cash to deal with potentially sour loans in the face of the COVID-19 fallout.
Oil prices slipped from an 11-week high after a report surfaced Russia is looking to open the spigots and increase production. U.S. benchmark West Texas Intermediate fell 2.2 per cent to trade at US$33.60 per barrel, and Alberta’s Western Canadian Select was down 2.52 per cent to US$25.52 per barrel.
The Canadian dollar was essentially unchanged against its U.S. counterpart to trade at 72.66 cents U.S.