Markets surge on stimulus optimism
Wall Street rallied Tuesday, rebounding from four days of losses, as hopes rose for a Covid stimulus/aid bill to be finally passed. As of the market close, the top four congressional leaders in Washington were meeting to discuss the long-awaited bill. The backdrop is urgent as Covid cases increase in the U.S., though vaccines are being rolled out in record time. The Nasdaq climbed 1.25%, but the S&P rose 1.3% and the Dow 1.14%.
However, the Russell 2000 of small-caps soared 2.4% to a new record of 1,959. The Russell is up 17% YTD vs. 14% for the S&P (the Nasdaq is up 40%). Also driving the indices was Apple, soaring 5% as the most-trade stock on reports that it will boost iPhone production 30% in the first half of 2021. In consumer names, Nike advanced 2.28%. Some travel names gained, such as Wynn Resorts by 6.1%.
The TSX enjoyed the momentum by closing 0.68%. The big double-headline in Canadian stocks was that Air Transat‘s board rejected an offer from a private investor, but shareholder overwhelming accept Air Canada’s. Transat stock soared 17.58% while Air Canada inched up 0.92%. Other winners on Bay Street included materials, real estate, Goeasy up 4.76%, and Stelco which popped 9%. The price of WTI gained over 1% buy WCS slid 2.3%. Gold edged up to $1,850 per ounce while the CAD remained just below 79 cents against the greenback.