BNN Bloomberg's closing bell update: July 10, 2020
4:20 p.m. ET: North American markets rally into weekend, Nasdaq hits new record
North American equity markets rallied into the weekend, gaining ground on Friday as optimism around COVID-19 treatment options outweighed concerns over the increased virus cases in the U.S.
The S&P/TSX Composite Index gained 0.93 per cent, the S&P 500 rose 1.05 per cent, the Dow Jones Industrial Average jumped 1.44 per cent and the Nasdaq Composite Index advanced 0.66 per cent to post a new record closing high.
The rally had all four major North American indices in positive territory for the week following a number of choppy trading sessions.
Markets were buoyed after Gilead Sciences Inc. reported its remdesivir drug reduced mortality risk among COVID-19 patients by nearly two-thirds when compared to standard care. Shares in the drugmaker closed out the session 2.16 per cent higher.
The tech-heavy Nasdaq Composite was in negative territory for much of the morning but got a lift from shares of Netflix Inc., which rallied eight per cent to a new record high after Goldman Sachs lifted its 12-month price target for the streaming company to US$670 per share from US$540.
In Toronto, nine of the 11 TSX subgroups closed the day in positive territory, led higher by health care, financials and consumer discretionary. Only information technology and materials finished the day lower.
Oil prices gained ground, with U.S. benchmark West Texas Intermediate up 2.17 per cent to trade at US$40.48 per barrel and Alberta’s Western Canadian Select rising 3.86 per cent to US$32.28 per barrel.
The Canadian dollar slipped modestly against its American counterpart, falling a tenth of a cent to 73.55 cents U.S.
12:15 p.m. ET: North American markets push higher, oil gains
North American equity markets gained ground into midday Friday, trading near session highs on a light-volume day. The S&P/TSX Composite Index and S&P 500 both gained half a per cent, the Dow Jones Industrial Average was up 0.9 per cent and the Nasdaq Composite Index broke into positive territory with a 0.1 per cent gain after spending the morning in negative territory.
The gains come as investors weigh the surge in COVID-19 case counts in the United States and the potential for a second wave in Asia against some encouraging signs of the effectiveness of a treatment produced by Gilead Sciences Inc. Rising COVID-19 case counts in hotspots like Florida, California and Texas have cast a shadow over the economic reopening plans in the U.S.
In Toronto, eight of the 11 TSX subgroups were in positive territory, led by health care, financials and utilities. Only materials, information technology and consumer staples were lower.
Oil prices pushed higher, with U.S. benchmark West Texas Intermediate gaining 1.26 per cent to US$40.18 per barrel and Alberta’s Western Canadian Select up 2.83 per cent to US$31.96 per barrel.
The Canadian dollar slipped two-tenths of a cent against its American counterpart to 73.44 cents U.S.
9:45 a.m. ET: North American markets fluctuate amid COVID case concerns
North American equity markets were mixed Friday morning as investors mulled the rising COVID-19 case count in the United States against the potential of finding an effective treatment for the virus.
The S&P/TSX Composite Index and Dow Jones Industrial Average rose 0.3 per cent, the S&P 500 was unchanged and the Nasdaq Composite Index was half a per cent lower, a rare underperformance for the tech-heavy basket this week.
The mixed trade came in the wake of Texas, Florida and California reporting record deaths due to the virus as the U.S. struggles to get the outbreak under control while simultaneously getting economic activity back to more normalized levels.
There was a bright spot in terms of the treatment of the virus, with Gilead Sciences Inc. reporting its remdesivir drug reduced mortality risk among COVID-19 patients by nearly two-thirds when compared to standard care. Shares of the drugmaker gained nearly two per cent in early trading.
Oil prices were unchanged, with U.S. benchmark West Texas Intermediate holding steady just shy of the US$40 mark at US$39.66 per barrel. Alberta’s Western Canadian Select was flat at US$31.13 per barrel.
The Canadian dollar held its ground against its U.S. counterpart, unchanged at 73.60 cents U.S.