Bay Street in Canada's financial district is shown in Toronto on Wednesday, March 18, 2020. THE CANADIAN PRESS/Nathan Denette

North American stock markets surge higher, Dow tops 30,000

North American stock markets surge higher, Dow tops 30,000

TORONTO — Canada’s main stock index surged higher Tuesday alongside other North American markets, as the Dow Jones industrial average passed the 30,000-mark for the first time.

Investors reacted positively on Tuesday to an injection of certainty into the future of the economy, said Craig Jerusalim, senior portfolio manager at CIBC Asset Management.

Jerusalim pointed to this week’s news about AstraZeneca’s potential COVID-19 vaccine, the start of the presidential transition in the U.S., and the potential for a familiar face in the U.S. Treasury Department if former Federal Reserve chair Janet Yellen is confirmed.

While markets may be hitting key “psychological” levels — with the Dow Jones industrial average up 454.97 points at 30,046.24, and the December gold contract down US$33.20 at US$1,804.60 an ounce — Jerusalim said he is still being cautious with his portfolio.

“The best analogy, I would say, is that we see the light at the end of the tunnel, but remember we are still in the tunnel,” he said, noting the recent growth of some speculative investments, such as Bitcoin.

“There are still a lot of tough months ahead of us. On the virus front, lockdowns are expanding. Investors should be aware of that and not get too ahead of themselves.”

The S&P/TSX composite index was up 179.72 points at 17,274.25, still shy of its February record high of 17,970.51.The S&P 500 index was up 57.82 points at 3,635.41, while the Nasdaq composite was up 156.15 points at 12,036.78.

Jerusalim said that the energy sector is helping the TSX on the path to its own record. Energy stocks gained nearly four per cent on Tuesday, with shares of Suncor Energy up 4.88 per cent and Enbridge Inc. up 3.98 per cent.

Suncor has announced a plan to become the operator of Syncrude’s oilsands mine and upgrader works, while Enbridge Inc. received approvals for U.S. federal permits for its Line 3 project. The January crude contract was up US$1.85 at US$44.91 per barrel and the January natural gas contract was up 7.7 cents at US$2.90 per mmBTU.

“So, two positive developments on the energy front that investors are cheering,” said Jerusalim.

Jerusalim also noted that demand in China and emerging markets has boosted copper, as the December copper contract was up more than four cents at nearly US$3.30 a pound.

The Canadian dollar traded for 76.73 cents US on Tuesday, compared with 76.44 cents US on Monday.

Jerusalim said he will be watching upcoming quarterly earnings reports from Canadian banks, as well companies such as Shopify and CargoJet as Black Friday kicks off the holiday shopping season.

“I don’t think we are going to revert back to the prior balance of bricks-and-mortar and e-commerce,” said Jerusalim.

“Then we have the positive backdrop of Black Friday, Cyber Monday, and the Christmas holiday shopping period. As lockdowns increase it could shape up to be the strongest e-commerce period ever.”

This report by The Canadian Press was first published Nov. 24, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

Anita Balakrishnan, The Canadian Press

Business

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

As of Friday, Alberta has under 10,000 active COVID-19 cases. (Image courtesy CDC)
Alberta identifies 573 new COVID-19 cases, 13 deaths on Saturday

There are currently 9,727 active cases of the virus in the province

A firetruck sits in front of a home on Harvey Close in Red Deer Saturday afternoon. (Photo by Sean McIntosh/Advocate staff)
Firefighters respond to Red Deer fire

Red Deer firefighters responded to a blaze in the north part of… Continue reading

(Courtesy photo)
Red Deer rental prices drop slightly

Renting an apartment in Red Deer became slightly cheaper last month. Rentals.ca… Continue reading

Rylee Trippel was last seen Friday. (Photo contributed by RCMP)
Red Deer RCMP looking for missing teen

Police are looking for a teen who was last seen in the… Continue reading

The Red Deer Outreach Centre’s Adopt a Family program raised $60,000 in 2020. (Photo courtesy Red Deer Outreach Centre’s Facebook)
Red Deer Outreach Centre’s Adopt a Family program raised $60K in 2020

The executive director of the Red Deer Outreach Centre says she is… Continue reading

Former Alberta Premier Rachel Notley shakes hands with Joel Ward, former Red Deer College President and CEO, as Notley announces that the college is on the path to grant degrees. Red Deer-South MLA Jason Stephan says university status is not a necessary condition for offering degrees. (File photo by Advocate staff)
Future of Red Deer University increasingly uncertain

MLA’s college update says RDC more like SAIT and NAIT than a university

RCMP say missing teen Hope Tivendale has been found. (File photo by Advocate staff)
No foul play suspected after burned body of homeless person found in North Vancouver

VANCOUVER — A burned body, believed to be of a homeless person,… Continue reading

The central zone experienced a spike in the number of COVID-19 cases Thursday, rising from 454 to 508 active cases over the past 24 hours, with 10 people in hospital. (THE CANADIAN PRESS/Darryl Dyck)
Spartan Bioscience says Health Canada has approved its rapid COVID-19 test

TORONTO — An Ottawa company says it’s received approval from Health Canada… Continue reading

Conservative Leader Erin O'Toole holds a press conference on Parliament Hill, in Ottawa, Thursday, Dec. 10, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Conservative Leader Erin O’Toole defends decision to back, then oust, Sloan

OTTAWA — Conservative Leader Erin O’Toole says he was once willing to… Continue reading

Quebec Premier Francois Legault pauses as he speaks during a news conference on the COVID-19 pandemic, Thursday, Jan. 21, 2021 at the legislature in Quebec City. THE CANADIAN PRESS/Jacques Boissinot
Non-essential travel ban would violate Constitution but courts might allow it: expert

MONTREAL — Fear that Quebecers will catch a new variant of COVID-19… Continue reading

A woman walks outside the Roberta Place Long Term Care home in Barrie, Ont. on Monday, January 18, 2021. The devastating toll of COVID-19 on long-term care residents in Canada has underscored the need for increased public funding for home care, advocates say. THE CANADIAN PRESS/Frank Gunn
COVID-19 deaths in long-term care reveal need for home supports: advocates

VANCOUVER — The devastating toll of COVID-19 on long-term care residents in… Continue reading

A Chinese flag is illuminated by sunshine in the Hall of Honour on Parliament Hill in Ottawa, Thursday, September 22, 2016. China is threatening retaliation against Canada after Prime Minister Justin Trudeau condemned a new security law giving Beijing more control over Hong Kong.. THE CANADIAN PRESS/Adrian Wyld
Diplomats contact Canadian held for over 2 years in China

BEIJING — Canadian officials have met online with former diplomat Michael Kovrig,… Continue reading

Marc Gold (centre) stands with senators André Pratte (left) and Peter Harder before being sworn in during a ceremony in the Senate on Parliament Hill, Thursday, Dec. 1, 2016 in Ottawa. THE CANADIAN PRESS/Justin Tang
Senator urges study of vexing barriers to using secret information in court cases

OTTAWA — A Senate committee should examine the hurdles that make it… Continue reading

In this file photo, a lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018. (By THE CANADIAN PRESS)
Winnipeg ticket holder wins Friday night’s $60 million Lotto Max jackpot

TORONTO — A ticket holder from Winnipeg won Friday night’s whopping $60… Continue reading

Most Read