Markets make new highs on coronavirus optimism
Markets continued to grind higher Wednesday with the the Dow and S&P, in particular, making a new high and closing as much as 1.68% up while the TSX rallied 0.79% to make its own new high at 17,651. Even crude oil, which had entered a bear market, leapt 3.2%; Canadian oil stocks gained 3.7% as a sector while stocks such as Crescent Point Energy shot up 8%. Investors were confident that the worst of the coronavirus is now behind us. In a reversal, the Nasdaq lagged the other indices, climbing only 0.79%.
One pressure point came from Tesla, which broke its parabolic six-day run, plunging over 17% or $152. The e-car giant was down as much as 21% during the session after a Tesla exec warned that the coronavirus will delay deliveries of its Model 3 in China. Meanwhile, to little surprise, the U.S. Senate acquitted Trump and ended his impeachment hearings.
Though the cannabis sector has been recovering in the past month, Tilray announced layoffs to 10% of its workforce. Tilray shed over 3% in trading. Also losing ground Wednesday was Bombardier, down nearly 4% in heavy trading. However, stocks that rely on Chinese revenues roared back. For example, Manulife recovered almost 2% though it’s still 4% off last month’s highs.