Surging Shopify and energy strength prompts partial recovery of TSX

Surging Shopify and energy strength prompts partial recovery of TSX

TORONTO — Canada’s main stock index recovered some of Wednesday’s losses as tech darling Shopify Inc. surged after receiving an analyst upgrade.

The Ottawa-based company’s shares gained 5.9 per cent, accounting for about 85 per cent of the TSX’s daily increase.

Shopify shares moved after Royal Bank of Canada put a US$1,000 target price, up from Thursday’s close of US$863.56.

“It continues to be a huge winner,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.

The momentum and interest in this name follows on the positive announcement earlier this week of its partnership with Walmart.

“One of the most clear patterns that we’re seeing in the marketplace is just this continued demand for tech stocks and Shopify is a prime example of that in Canada,” he said.

The S&P/TSX composite index closed up 51.14 points at 15,479.83.

Shopify, Enbridge Inc. and RBC were the big drivers of the market’s Thursday returns.

Besides technology, consumer staples was one of the big winners on the day as strong quarterly results from Empire Company Ltd. drove all grocers higher on increased traffic during the COVID-19 pandemic.

Energy moved off early gains after Iraq announced it would cut an additional 260,000 barrels of crude per day on top of the agreed amount in the agreement with OPEC countries plus Russia last month.

It was also initially helped by a U.S. refiner saying it was increasing capacity at its large Texas refinery, which points to stronger demand for driving.

The August crude contract was up 84 cents at US$39.05 per barrel and the July natural gas contract was unchanged at nearly US$1.64 per mmBTU.

“These are all incrementally positive signs that the economy is starting to reopen a little bit more and to the extent that, that continues to happen it should continue to provide some tailwinds to equity market sentiment,” said Archibald.

Materials was lower on a dip in gold prices as Iamgold Corp. lost four per cent.

The August gold contract was down US$4.50 at US$1,731.10 an ounce and the July copper contract was down 0.15 of a cent at nearly US$2.59 a pound.

The Canadian dollar traded for 73.59 cents US compared with 73.77 cents US on Wednesday.

The loonie was hit as Canada’s wholesale trade plunged a record 21.6 per cent in April as the pandemic shut businesses across the country.

A Bank of Canada senior official also suggested Thursday that the country is on the path to recovery but it’s going to be very gradual.

In New York, the Dow Jones industrial average was down 39.51 points at 26,080.10. The S&P 500 index was up 1.85 points at 3,115.34, while the Nasdaq composite was up 32.52 points at 9,943.05.

In addition to concerns about rising coronavirus infections in several states, weekly jobless numbers were weaker than expected.

They dropped for an 11th straight week, reaching 1.51 million. The number of workers who continued to get unemployment benefits also decreased to 20.5 million.

But analysts had expected lower numbers, “raising questions about the strength of the reopening recovery and perhaps recognition that political, societal and economic turmoil has had more lasting effects,” Colin Cieszynski, chief market strategist for SIA Wealth Management, wrote in a note to clients.

There was positive news, however, from some smaller surveys, said Archibald.

“So it does appear as though we are turning the corner on the economic reopening and so to that extent I think that should help over time push more money back into the stock market, which obviously is happening today in Canada.”

This report by The Canadian Press was first published June 18, 2020

Companies in this story: (TSX:IMG, TSX:EMP.A, TSX:SHOP, TSX:ENB, TSX:RY, TSX:GSPTSE, TSX:CADUSD=X)

Ross Marowits, The Canadian Press

Business

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

Just Posted

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

Ma & Paws Pet Supplies. Facebook/ Ma & Paws Pet Supplies.
Rimbey residents petition for dog park

Request for approval of dog park will be brought up at Tuesday Oct. 27 Town Council meeting.

The future site of the Rimbey Travel Centre. Web photo
New Rimbey development aims to capitalize on highway traffic

Phase I of the Rimbey Travel Centre would be along Hwy. 20, if approved

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

soup
Rimbey FCSS to introduce the Cultural Community Kitchen

The Cultural Community Kitchen sessions will be held at the Rimbey Co-op

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

Comedic actor Seth Rogen, right, and business partner Evan Goldberg pose in this undated handout photo. When actor Seth Rogen was growing up and smoking cannabis in Vancouver, he recalls there was a constant cloud of shame around the substance that still lingers. Rogen is determined to change that. (Maarten de Boer ohoto)
Seth Rogen talks about fighting cannabis stigma, why pot should be as accepted as beer

‘I smoke weed all day and every day and have for 20 years’

Leader of the Opposition Erin O’Toole rises during Question Period in the House of Commons Thursday October 22, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
O’Toole tells Alberta UCP AGM Liberals were ‘late and confused’ on COVID response

He says Alberta Premier Jason Kenney has taken charge and not waited to make things happen

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020. THE CANADIAN PRESS/Todd Korol
Inquiry into oil and gas foes to deliver report next year: Kenney

A lawsuit filed by environmental law firm Ecojustice argues the inquiry is politically motivated

The Canadian border is pictured at the Peace Arch Canada/USA border crossing in Surrey, B.C. Friday, March 20, 2020. More than 4.6 million people have arrived in Canada since the border closed last March and fewer than one-quarter of them were ordered to quarantine while the rest were deemed “essential” and exempted from quarantining. THE CANADIAN PRESS/Jonathan Hayward
Majority of international travellers since March deemed ‘essential’, avoid quarantine

As of Oct. 20, 3.5 million travellers had been deemed essential, and another 1.1 million were considered non-essential

This photo provided by Air Force Reserve shows a sky view of Hurricane Epsilon taken by Air Force Reserve hurricane hunter team over the Atlantic Ocean taken Wednesday, Oct. 21, 2020.   Epsilon’s maximum sustained winds have dropped slightly as it prepares to sideswipe Bermuda on a path over the Atlantic Ocean.  The National Hurricane Center says it should come close enough Thursday, Oct. 22, evening to merit a tropical storm warning for the island.  (Air Force Reserve via AP)
Hurricane Epsilon expected to remain offshore but will push waves at Atlantic Canada

Epsilon is not expected to have any real impact on land

A voter places her absentee ballot in the ballot box, Wednesday, Oct. 7, 2020, at Merrill Auditorium in Portland, Maine. THE CANADIAN PRESS/AP/Robert F. Bukaty
American voters living in Canada increasingly being counted in presidential race

The largest number of Canadian-based American voters cast their ballots in New York and California

A composite image of three photographs shows BC NDP Leader John Horgan, left, in Coquitlam, B.C., on Sept. 25, 2020; BC Green Party Leader Sonia Furstenau, centre, in Victoria on Sept. 24, 2020; and BC Liberal Party Leader Andrew Wilkinson Pitt Meadows, B.C., on Sept. 24, 2020. THE CANADIAN PRESS/Darryl Dyck, Chad Hipolito
British Columbia votes in snap election called during COVID-19 pandemic

NDP Leader John Horgan called the snap election one year before the fixed voting date

Nunavut's provincial flag flies on a flag pole in Ottawa, on Tuesday June 30, 2020. The annual report from Nunavut's representative for children and youth says "complacency and a lack of accountability" in the territory's public service means basic information about young people needing services isn’t tracked. THE CANADIAN PRESS/Adrian Wyld
Nunavut’s young people ‘should be expecting more’ from government services: advocate

‘The majority of information we requested is not tracked or was not provided by departments’

Most Read