Oil spikes to extend rally, but loses momentum
A massive snow storm blanketed Canada and the United States Tuesday and propelled energy demand. The price of WCS spiked nearly 3% and WTI climbed 1.2% while natural gas soared 6.73%. In fact, WTI topped $60 and hit fresh one-year highs. Along with the energy spike, hopes that Washington will deliver the US$1.9 trillion stimulus package and the ever-falling number of Covid cases and deaths continues to fuel optimism. Despite all that, markets closed Tuesday (following holiday Monday) mixed.
Salesforce‘s 3.42% climb drove the Dow by 0.2% to new highs, but the S&P finished flat and the Nasdaq slipped 0.34% despite a strong morning. Travel names soared as Royal Caribbean soared 9.6%, but some health names slid, like CVS by nearly 5%. The price of gold retreated 1.5% while small caps, which have been on a tear, took a step back, with the Russell 2000 closing -0.72%. Tech had a rocky day as Apple closed 1.61% and AMD -2.46% both in heavy trading. However, Imax reported a opening weekend record for a blockbuster film, and its shares leapt 6.49%, indicating that audiences still want to see movies on the big screen.
The energy crisis and U.S. stimulus hopes drove the TSX up 0.17% to claim a record high. Pot names were smoking as Aphria leapt over 27% and Aurora jumped almost 13%. However, Hexo outperformed all, rocketing 22.16% after announcing it was buying Zenabis Global (up 16.13%) to become a major cannabis player. Of course, energy names rallied. Vermilion rallied 7.74% while travel names like Chorus Aviation flew 7.67%.
💨 SalesForce.com Inc. +3.42%
🚢 Royal Caribbean Cruises +9.6%
👨⚕️ CVS Health Corp -5%
🍎 Apple -1.61%
💿 Advanced Micro Devices -2.46%
🎞 IMAX Corp. +6.49%
🌿 Aphria Inc +27%
🌿 Aurora Cannabis +13%
🌿 Hexo Corp +22.16%
🛢 Vermilion Energy Inc +7.74%
🛫 Chorus Aviation Inc +7.67%