Nasdaq cracks 11K, oil surges
The rally continued on both sides of the border, despite worries of over-stretched markets. Though the price of WTI and WCS lost ground by Thursday’s close, Canadian energy stocks rallied 1.36%. Tourmaline Oil surged nearly 6%. Bausch Health initially shot up 11% after announcing it was spining off its eyecare unit, Bausch + Lomb, into a separate publicly-listed company. Bausch stock eventually closed just shy of 4%. Toymaker Spin Master zoomed over 17% after releasing surprisingly strong Q2 results. It was the largest gainer on the TSX Thursday.
In New York, Wall Street got off to a sluggish start, but closed higher. In particularly, the Nasdaq shattered 11,000 points for the first time, climbing precisely 1% to close at 11,108. There’s a prevailing sense that tech stocks are rallying on momentum and FOMO (fear of missing out). Apple jumped 3.49% in heavy trading without any news or quarterly reports. Not so for Facebook, which leapt 6.49%, and Twitter, up 2.45%, which banned a fake-news Trump video where he insists that children are “almost immune” from COVID-19, which dangerously contradicts science.
Investors still hope that Washington will agree on a new fiscal stimulus package, but negotiations continue without a clear signal. However, American corporate earnings reports so far have exceeded by 22.5% analyst expectations, according to IBES Refinitiv data, the highest on record since 1994.