Vaccine Optimism Pushes Futures Skyward
November 24, 2020 at 07:45 AM EST
Tuesday, November 24, 2020 07:45 AM EST Vaccine Optimism Pushes Futures Skyward CP, First Quantum in Focus Futures for equities in Canada’s largest market rose on Tuesday, as a third promising COVID-19 vaccine spurred hopes of a quicker economic recovery and pushed up oil prices to its highest since March. The TSX gained 75.43 points to close Monday at 17,094.53. The Canadian dollar raised itself 0.13 cents Tuesday at 76.62 cents U.S. December futures added 0.6% Tuesday. RBC raised the target price on Canadian Pacific Railway to $506.00 from $451.00 Jefferies raised the target price on First Quantum Minerals to $33.00 from $20.00 Jefferies raised the target price on Sierra Metals to $4.00 from $2.75 ON BAYSTREET The TSX Venture Exchange finished 3.24 points in the green Monday at 743.69. ON WALLSTREET U.S. stock futures climbed early Tuesday in relief over the Trump administration’s move to begin the transition process. Futures for the Dow Jones Industrials sprang 303 points, or 1%, to 29,843. Futures for the S&P 500 acquired 26.5 points, or 0.7%, at 3,602.50. Futures for the NASDAQ Composite gained 39 points, or 0.3%, to 11,944.25. The move higher in futures came after General Services Administration chief Emily Murphy told President-elect Joe Biden that the Trump administration is making federal resources available for his transition into office. Trump tweeted that he approved of the move, but said he will "keep up the good fight" even as his re-election campaign has so far failed to win any legal victories that would invalidate votes for Biden. Investors cheered more promising developments on the Covid-19 vaccine front. AstraZeneca said interim analysis showed its vaccine has an average efficacy of 70%, following strong results from Pfizer-BioNTech and Moderna. Major averages hit their session highs after news broke that Joe Biden will nominate former Federal Reserve Chair Janet Yellen to be Treasury Secretary. Many view Yellen as a market-friendly pick considering that she oversaw a long economic expansion with historically low-interest rates and she’s likely to push for further fiscal stimulus. Investors will be treated to a slew of earnings from retailers ahead of the holiday season, including Best Buy and Dick’s Sporting Goods before the bell as well as Gap and Nordstrom after the close Tuesday. U.S. markets will be closed for the Thanksgiving holiday on Thursday and will have a short session on Friday. Overseas, in Japan, the Nikkei 225 returned from holiday to gain 2.5%, while in Hong Kong, the Hang Seng index was ahead 0.4% Oil prices added 45 cents to $43.51 U.S. a barrel. Gold prices gave up $30.20 to $1,807.60 U.S.