Markets inch upward during session as earnings beats after hours
Tuesday markets continued the rally from Monday afternoon, though they gave back a bit before the close. The TSX finished 0.45% higher as WCS soared nearly 21% to just under $20/barrell. One of the biggest gainers are MEG Energy, leaping 16.15%. Apparently, investors are encouraged by OPEC’s record production cuts despite the lack of storage space for oil. As well, ongoing plans to reopen segments of North America are contributing to optimism.
Another factor on the TSX were earnings reports. Sleep Country reported YOY Q1 revenues increasing 1.5%, though gross profit margin and operating EBITDA slipped. Of course, store sales plunged later in the quarter, but its e-commerce business leapt 143%. Likely other companies will report similar Q1 trends. ZZZ jumped nearly 8%.
In New York, the Nasdaq rallied 1.13% ahead of the the S&P (0.9%) and Dow (0.56%). WTI enjoyed its fifth-straight increase, up 20.4% as gold remained steady above $1,700/ounce. However, the real story came after the closing bell as a slew of companies reported earnings. Disney‘s EPS missed at 60 cents EPS vs. the 89-cent estimate, but its revenues beat at $18.01 billion vs. the $17.8 billion estimate. The ouse lost 2% during the session but regained some of that after the report. Electronic Arts‘ revenues of $1.52 billion beat the $1.32 billion estimate driven by a surge in use of its videogames. EA rose 2.38% during Tuesday but was rocky after earnings. Meanwhile, Beyond Meat‘s revenues of $97.1 million beat the expected $88.3 million. The stock sizzled 5.25% during the session plus about that much after the bell.