U.S. stock futures pointed to gains at the open on Wednesday, following recent weakness in markets aggravated by oil’s massive decline.
Dow futures rose 110 points, indicating a gain of about 0.6% at the open. The S&P 500 and Nasdaq Composite were also slated to open higher, with gains of 0.6% and 0.9%, respectively. The West Texas Intermediate contract for June delivery rebounded in evening trading, popping 15% to above $13 a barrel.
Helping sentiment, Senate Republicans and Democrats passed on Tuesday evening a $484 billion coronavirus relief package for small businesses, hospitals and testing. The House could approve the bill as early as Thursday.
On Tuesday, the Dow Jones Industrial Average lost about 630 points, bringing its weekly decline to more than 1,000 points. The 30-stock index was dragged down by Merck & Co., which lost 5.5%, and Boeing, which fell more than 5%.
The S&P 500 also experienced sharp declines, falling more than 3%. The tech heavy Nasdaq Composite fell about 3.5%, its worst daily performance since April 1.
The market’s sell-off this week came beside massive losses in the oil market due to the evaporation of demand. Oil prices are tanking and spreading to more futures contracts, worrying investors about the deep economic damage being done by the coronavirus shutdowns.
“This week investors are realizing that even though the crisis could soon get better, the negative impacts of having an economy which is essentially shut down are magnifying at an alarming rate. With no demand even for a couple months, energy prices go negative as excess oil supplies balloon,” Jim Paulsen, chief investment strategist at the Leuthold Group told CNBC.
The June contract for West Texas Intermediate, which is the more actively traded contract and therefore a better indication of how Wall Street views the price of oil, settled down 43.4% at $11.57 per barrel. On Monday, crude futures for May fell below zero for the first time in history.
Investors also digested another batch of corporate earnings showing the economic fallout of the virus on Tuesday. Shares of IBM fell 3% after reporting a decline in revenue. Coca-Cola fell 2.5% as the beverage company said global volumes plunged 25% due to the coronavirus pandemic.
Netflix and Chipotle both rose in extended trading on Tuesday following their quarterly earnings report. Netflix reported global streaming net additions came in a 15.8 million, far higher than the 8.2 million expected. Netflix, which has rallied nearly 35% this year, is benefiting from the stay-at-home trend. Chipotle saw digital sales surge more than 80% as the revved up online orders during the coronavirus shutdown.
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Telus selects Nokia, Ericsson as 5G suppliers – Yahoo Canada Finance
Vancouver-based national carrier Telus has selected Nokia and Ericsson as its 5G vendors, a press release from the company said.
The news comes the same day that Bell announced it too would use Ericsson to provide radio access network (RAN) equipment.
“Our team is committed to rolling out superior network technology from urban to rural communities, fueling our economy and driving innovation as we power Canadians into the 5G era through an unparalleled network experience,” Telus’ CEO Darren Entwistle said in the release.
“Our 5G deployment will support economic growth and diversity that will be essential for the virtualization of health, education, teleworking, and stimulating the economic growth and recovery given the impact of COVID-19.”
During its Q1 2020 earnings, CFO Doug French said its focus right now is to help its customers during the COVID-19 crisis.
In its Q4 2019 earnings, the carrier said it was not going to pre-announce its 5G launch plans but that its initial module, or the first phase of the 5G rollout, would be with Huawei until the government approves its RFP.
Bell and Telus use Huawei’s network equipment in some areas. The federal government is still reviewing whether or not it intends to ban the Chinese telecommunications manufacturer from participating in Canada’s 5G rollout.
Rogers also uses Ericsson as a 5G vendor.
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North American equity markets rally in spite of widespread unrest – BNNBloomberg.ca
1:15 p.m. ET: North American equity markets extend gains into midday, oil rallies
North American equity markets were solidly in positive territory through the midday trade, with the S&P/TSX Composite Index up 0.9 per cent, the Dow Jones Industrial Average gaining 0.8 per cent, the S&P 500 rising 0.4 per cent and the Nasdaq Composite modestly higher, up 0.1 per cent.
U.S. benchmark oil West Texas Intermediate accelerated higher into the afternoon, rising more than three per cent to US$36.55 per barrel to trade at session highs.
That helped lift the TSX energy sector, which led the way on the composite with a 3.4-per-cent gain on the session.
The Canadian dollar continued to move higher against its U.S. counterpart, gaining a third of a cent to trade at 74.04 cents U.S., though the greenback has been broadly weaker against almost all of its major-market peers.
9:35 a.m. ET: North American equity markets rally in spite of widespread unrest
North American markets notched gains into the early trading day Tuesday, with the S&P/TSX Composite Index and Dow Jones Industrial Average both up half a per cent, the S&P 500 gaining a third of a per cent and the Nasdaq Composite Index up a more modest 0.1 per cent. The gains came in spite of widespread civil unrest in the United States, as some police responded with force to demonstrators protesting against systemic racial inequities.
In Toronto, shares of BlackBerry Ltd. rose about seven per cent to extend Monday’s gains after an unconfirmed report from StreetInsider said the company has held talks with Fairfax Financial over a deal for Fairfax to acquire the remainder of BlackBerry’s shares. In an email to BNN Bloomberg, BlackBerry declined to comment on rumours or speculation.
Crude oil prices were higher, with U.S. benchmark West Texas Intermediate up half a per cent to US$35.0 per barrel, though it had briefly breached the US$36 level earlier in the day. Crude has gotten a boost from the OPEC+ group’s production curtailments, and there are reports the group may extend those cuts for another month to support prices.
Alberta’s Western Canadian Select also gained, rising 1.55 per cent to US$29.51 per barrel.
The Canadian dollar extended Monday’s surge against its U.S. counterpart, gaining another two-tenths of a cent to 73.90 cents U.S.
All Addition Elle and Thyme Maternity stores in Canada to close down – CBC.ca
Reitmans will shutter 77 Addition Elle and 54 Thyme Maternity stores across Canada as part of its restucturing process, the Montreal-based retailer announced Tuesday.
Last month, the 94-year-old fashion chain announced that it would restructure its operations partly because of COVID-19, which hammered retailers hard.
In addition to its eponymous chain focusing on work clothes for career-aged women, Reitmans also runs the Addition Elle, Thyme Maternity, RW & Co. and Penningtons chains.
As past of the restructuring process, Reitmans has decided to permanently close Addition Elle and Thyme Maternity. The former focuses on plus size fashions. The latter on maternity wear.
The move will result in the loss of about 1,400 jobs — 1,100 in store and about 300 at head office.
“The strategic decision to close two beloved Canadian fashion brands was not made lightly, but it is necessary to enable our business to move forward as a profitable organization,” CEO Stephen Reitman said.
“All of the efforts we put forth to turn these brands around were derailed by the COVID-19 pandemic and, unfortunately, we can no longer afford the required resources to bring them back to profitability.”
Locations of both chains are set to reopen in the coming days, subject to physical distancing restrictions across the country, but the two retail chains will be in wind-down mode, liquidating as much inventory as possible to pay back creditors.
The last day for Thyme Maternity will be July 18.
The last day for Addition Elle will come the next month, on August 15.
Company wide, before the restructuring process began Reitmans had 576 stores across Canada, including 259 Reitmans, 106 Penningtons and 80 RW & CO. locations. Many stores for the surviving three brand names will also close, as the company plans to put more focus into selling online.
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Enbridge to boost tolls on key pipeline based on 2019 economy – BNNBloomberg.ca
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