Markets rebound but fade at the close as China contains virus
North American markets rebounded Wednesday morning from Tuesday’s moderate sell-off, sparked by the coronavirus pandemic in China, but closed Wednesday only modestly in the green. The TSX, S&P and Nasdaq hung on to finish positive while the Dow finished slightly negative.
Investors were encouraged that Chinese authorities appear to be containing the virus to Wuhan, where the coronavirus originated. Also, U.S. existing home sales rebounded in December as inventory plunged to its lowest level ever over the 21 years of data collecting. Texas Instruments was one of the day’s notable gainers, up 1.9% after issuing an earnings beat the evening before. Meanwhile, continued its astonishing run, Tesla climbed 4.09% and reached a $100-billion market cap.
Closer to home, the Bank of Canada vowed to hold interest rates at 1.75% and will keep the door open to a cut. As usual, REITS, weed, utilities and cannabis stocks led TSX gains Wednesday, with Aphria soaring 8.78%. But the biggest gainer was AGF Management, which spiked 9.15%, after issuing its own earnings. Meanwhile, an unloved sector saw a glimmer of good news. The U.S. Interior Department greenlit the extension of the long-delayed Keystone XL pipeline in Montana. However, after a morning spike, pipeline owners TC Energy closed slightly negative.