S & P / TSX Composite Posts Slight Rise, ‘Risk Appetite’ Raises Nasdaq, S&P 500
TORONTO – A ‘constant appetite for risk’ on the part of investors offset higher-than-expected US inflation data and news of a major setback for a COVID-19 vaccine maker as some US markets outperformed Canada’s main stock index.
The S&P 500 Index closed 13.60 points higher at 4,141.59, while the high-tech Nasdaq composite rose 146.10 points to 13,996.10.
The Dow Jones Industrial Average fell 68.13 points to 33,677.27 and the Toronto S & P / TSX Composite Index edged up 2.42 points to 19,203.70.
“The mood is generally quite upbeat and the constant investor appetite for risk is a big boost in equity markets today,” said Candice Bangsund, portfolio manager for Fiera Capital.
“So on the one hand, we saw US inflation data this morning that was stronger than expected, but again investors are betting any short-term spike in inflation will be short-lived. and therefore will not be sufficient to justify a policy change or withdrawal of monetary policy support from the Fed. “
Falling bond yields hurt U.S. banking stocks but helped big tech companies.
The Dow Johnson & Johnson component closed down 1.3% on Tuesday after U.S. regulators recommended a pause in use of its single-dose COVID-19 vaccine to investigate reports of potentially dangerous blood clots. Moderna, which also makes a COVID-19 vaccine, rose 7.4%.
The potential loss of a vaccine option has cast a shadow over some businesses that relied on accelerated distribution to recover from the pandemic, including a wide range of retailers, and travel-related businesses like hotels have also been weighed down. .
The Canadian dollar traded at 79.66 cents US, unchanged from Monday.
A declining bond yield environment and vaccine news prompted investors to switch back to the ‘work from home’ growth stocks that proved popular during the pandemic, while leaving the more cyclical value stocks compatible with the market. reopening the economy, Bangsund said.
This translated into stronger performance from the tech and consumer discretionary sectors.
“The sectors whose fortune is linked to the global economy such as energy, industry, finance, the reopening of trade, these are the sectors which underperform today and which largely explain the underperformance. Canadian market performance given its more cyclical bias, “she said.
The health care sector was the best performer in Toronto, leading the way with a gain of 1.43% after losing 5.61% on Monday.
Cannabis company Aphria Inc. recovered from a 14.19% drop on Monday after reporting a disappointing first quarter loss, jumping $ 1.08, or 6.18%, to close at 18.55 $ Tuesday. Organigram Holdings Inc. rose four percent to $ 3.64.
The May crude oil contract rose 48 cents to US $ 60.18 per barrel after OPEC released a forecast calling for a stronger demand recovery in 2021. The May natural gas contract has increased six cents to US $ 2.62 per mmBTU.
Despite the price increases, the energy sector was the worst performer in Toronto, down 1.05% thanks to a 1.73% decline in Vermilion Energy Inc., 1.65% in Crescent Point Energy Corp. and 1.58% in Meg Energy Corp. .
The June gold contract rose US $ 14.90 to US $ 1,747.60 per ounce and the May copper contract rose one cent to US $ 4.03 per pound.
The materials sector grew less than 1% while Alamos Gold Inc. posted an increase of 5.04%, Endeavor Silver Corp. jumped 4.61% and Lundin Mining Corp. increased by 4.24%.
– By Dan Healing in Calgary.
This report by The Canadian Press was first published on April 13, 2021.
Companies in this story: (TSX: GSPTSE, TSX: CADUSD = X, TSX: APHA, TSX: OGI, TSX: VET, TSX: CPG, TSX: MEG, TSX: AGI, TSX: EDR, TSX: LUN)
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