Canadian earnings and U.S. Fed raise stocks
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Wednesday saw stocks rise…
Stocks rise on both sides of the border for different reasons. The TSX jumped 1.13% after positive earnings from Shopify, soaring 7% after blowing away Q2 estimates with a 97% revenue increase as brick-and-mortar stores fled online.
At one point in the session, Shopify leapt 12.5%. Another large-cap, Enbridge, also pleased Bay Street by matching earnings. ENB-T rallied 3%. There was green across the screen except in materials, reversing direction from recent days. Despite that, gold rose 0.5% as did oil.
Gold continued to rally because the U.S. Fed announced it would keep rates historically low, even though lawmakers in Washington continue to wrangle over the next aid package and at least four southern and western American states reported one-day records for COVID-19 deaths. Also, Washington was grilling the FANG CEOs past the closing bell. Nevertheless, optimism reigned as the Dow rallied 0.62%, though the S&P and Nasdaq both soared by 1.25% and 1.35% respectively. Big gainers included AMD, jumping 12.54% after beating its Q2, and Kodak by a whopping 318%.
Yes, Kodak, the former camera giant, is transforming into a pharma-chemical company with a major cash injection from Washington.