North American stock markets rebound despite concerns about COVID, U.S. gridlock

North American stock markets rebound despite concerns about COVID, U.S. gridlock

North American stock markets rebound despite concerns about COVID, U.S. gridlock

TORONTO — The technology sector helped North American stock markets to bounce back Tuesday despite ongoing concerns about COVID-19 infections and U.S. political gridlock.

“I think that there are a lot of opposing forces in play right now and the market could have broken in either direction,” said Craig Jerusalim, portfolio manager at CIBC Asset Management.

The big negatives are rising COVID-19 case counts pushing the U.K. government to proceed with more lockdown measures and the lack of political agreement in the U.S. for another stimulus package.

Federal Reserve chairman Jerome Powell urged the House of Representatives during a committee hearing to approve more stimulus. However, Republicans are more focused on approving a nominee to the Supreme Court to replace Ruth Bader Ginsburg, who died last week, said Jerusalim.

“Clearly if a new package does come together it will be a positive for the markets,” he said in an interview.

Supporting the market rebound from Monday’s losses were existing home sales that met lofty expectations by climbing 2.4 per cent in August to its highest level since 2006 with a seasonally adjusted annual rate of 6 million homes sold.

The S&;P/TSX composite index closed up 161.12 points at 16,142.89.

In New York, the Dow Jones industrial average was up 140.48 points at 27,288.18. The S&P 500 index was up 34.51 points at 3,315.57, while the Nasdaq composite was up 184.84 points at 10,963.64.

The Canadian dollar traded for 75.13 cents US compared with 75.23 cents US on Monday.

All 11 major sectors on the TSX were higher, led by consumer staples, technology and utilities.

Shares of grocery chains increased with Metro Inc. up 5.1 per cent, followed by Empire Co. Ltd. at 3.4 per cent and Loblaw Co. Ltd. at 3.2 per cent.

Technology rose in lockstep with the Nasdaq, which has come under pressure, as Blackberry Ltd. was up 3.8 per cent, Absolute Software Corp. increased 3.2 per cent, and Shopify Inc. rose 2.7 per cent.

In the U.S., technology was pushed higher by big names such as Amazon.com Inc., Zoom Video Communications and Facebook Inc.

“Whether or not we do have another lockdown, the largest companies that benefited from the work-from-home, are continuing to benefit, whether it be the Apples, Microsofts or Zooms of the world,” Jerusalim said.

“It seems like the best companies with the most recurring revenues and most defensive earnings streams through that period were some of the big technology companies.”

The energy sector gained one per cent with Canadian Natural Resources Ltd. rising 2.3 per cent on higher crude oil prices.

The November crude contract was up 26 cents at US$39.80 per barrel and the November natural gas contract was down 11.3 cents at nearly US$2.60 per mmBTU.

Materials was higher on increased copper prices.

The December gold contract was down US$3 at US$1,907.60 an ounce and the December copper contract was up 2.9 cents at US$3.06 a pound.

Mining company executives virtually attending a big Denver gold show highlighted their free cash flow and new discipline to return excess free cash to shareholders through increased dividends of share buybacks.

This report by The Canadian Press was first published Sept. 22, 2020.

Companies in this story: (TSX:ABT, TSX:BB, TSX:SHOP, TSX:CNQ, TSX:CNQ, TSX:MRU, TSX:EMP.A, TSX:L, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

Just Posted

Rotary Club of Red Deer logo.
Red Deer Rotary Club hosting tree planting event later this month

The Rotary Club of Red Deer will host a tree-planting event later… Continue reading

New admissions have been suspended for Engineering Technology diplomas (Instrumentation, Electrical and Mechanical) and the Transitional Vocational Program at Red Deer College. (Photo by Sean McIntosh/Advocate staff)
Developmentally disabled impacted: Red Deer College suspends program

Transitional Vocational Program comes to an end

Alberta’s chief medical officer of health Dr. Deena Hinshaw is asking Albertans to do their part by observing gathering limits, staying home if unwell, wearing masks and maintaining physical distance. (Photo by Chris Schwarz/Government of Alberta)
Three new Central zone COVID-19 deaths, Alberta adds 1,433 cases

Red Deer down to 802 active cases of COVID-19

NDP education critic Sarah Hoffman holds up freedom of information requests that turned up no records. The Opposition requested back-to-school re-entry plan correspondence between Education Minister Adriana LaGrange and school boards, teachers and the media. Photo via Facebook live
NDP renews calls for Alberta gov’t to scrap K-6 draft curriculum

The NDP is once again calling on the Alberta Government to get… Continue reading

Earlier this week Alberta Health Services warned that Rocky Mountain House Health Centre emergency department would be temporarily without physician coverage from May 12, at 6 p.m., to May 13, at 7 a.m. (Photo contributed by the Town of Rocky Mountain House)
Doctors needed in Rocky Mountain House

Emergency department temporarily closed due to doctor shortage

Bo’s Bar and Grill owner Brennen Wowk said the hospitality industry is looking for more clarity from the province around what conditions must be met to allow for restaurants reopening. (Advocate file photo)
Frustated restaurant owners want to know government’s reopening plan

Restaurant owners feel they are in lockdown limbo

Harley Hay
Harley Hay: Insert your name here

Back in the Paleolithic Era when a McDonald’s cheeseburger was 29 cents… Continue reading

Black Press file photo
Job search: Write a request that will get accepted

Last Thursday, when I logged into LinkedIn, I had nine connection requests… Continue reading

T-shirt with vaccine shot. (Contributed photo)
Letter: Hand out T-shirts with vaccine shots

I made myself a graphic T-shirt recently after getting my vaccine shot.… Continue reading

Winnipeg Jets' Kyle Connor (81) scores on Toronto Maple Leafs goaltender Jack Campbell (36) as TJ Brodie (78) defends during second-period NHL action in Winnipeg on Friday, May 14, 2021. THE CANADIAN PRESS/John Woods
Connor scores twice, Jets beat Leafs in regular-season finale

Connor scores twice, Jets beat Leafs in regular-season finale

Atletico Ottawa defender Vashon Neufville controls the ball during Atletico Ottawa’s first team practice of their inaugural season in the Canadian Premier League in Ottawa, Wednesday June 3, 2020. The Canadian Premier League plans to kick off its third season mid-June to early July in one location without fans. THE CANADIAN PRESS/Chris Wattie
Canadian Premier League delays kickoff again, looks to mid-June to early July start

Canadian Premier League delays kickoff again, looks to mid-June to early July start

Calgary’s Stephen Ames shoots 66 to take Mitsubishi Electric lead

Calgary’s Stephen Ames shoots 66 to take Mitsubishi Electric lead

Nashville Predators goaltender Juuse Saros (74) deflects a shot against the Carolina Hurricanes during the first period of an NHL hockey game Saturday, May 8, 2021, in Nashville, Tenn. (AP Photo/Mark Zaleski)
NHL postseason: Who’s hot as the playoffs arrive?

NHL postseason: Who’s hot as the playoffs arrive?

Ottawa Senators' Connor Brown, right, celebrates a goal with teammates during third period NHL action against the Montreal Canadiens, in Ottawa, Wednesday, March 5, 2021. Brown will lead a young Canadian squad into the world hockey championship in Riga, Latvia. THE CANADIAN PRESS/Sean Kilpatrick
Ottawa forward Connor Brown leads Canada’s roster at world championship

Ottawa forward Connor Brown leads Canada’s roster at world championship

Most Read