Tuesday rally fades though COVID-19 cases continue declining
Tuesday was looking like an extension of Monday’s rally, both lifted by declining numbers of new cases of COVID-19 in hot spots Italy, Spain and the U.S. as well as Germany, Iran, the U.K. and Canada. In early trading, New York and Toronto indices were riding 3-4% gains, but those faded throughout the day. The New York indices finished slightly in the red, though the TSX managed to stay in the green just barely.
The apparent cause was that investors were debating whether the spread of the virus is slowing, though the JohnsHopkins live map clearly indicates that it is. Perhaps investors felt that the current rally was overdone. Perhaps it was simple jitters. Whatever the cause, volatility remains in the markets. The ongoing oil war between the Saudis and Russians didn’t help, which drove WCS down over 50% to $4. The postponed OPEC meeting, now including a representative from Alberta, now takes place Thursday.
Despite the fade at the close, some beaten stocks enjoyed a revival Tuesday. Chorus Aviation soared nearly 15%, though it often endures double-digit swings either way. Chorus enjoys a long-term contract operating Air Canada’s regional routes, and AC itself rallied 9.3%. Toymaker, Spin Master, jumped 10.71% while Alaris Royalty rallied 11.73%. Speaking of beaten up, the cruiseline, Carnival, was thrown a life saver from Saudi Arabia‘s sovereign wealth fund disclosed it had bought an 8.2% stakes in the company. Carnival soared 18.5% in intraday trading, though closed up 10.68%.
Remember: stay safe.