Stocks Flat to Begin June

Share with us

Canada’s main stock index opened slightly higher on Monday, weighed by energy stocks on falling oil prices, as fears of low demand for crude offset the Organization of the Petroleum Exporting Countries and Russia considering extended production cuts.

The S&P/TSX Composite Index eked up 13.23 points to commence trading Monday at 15,206.06.

The Canadian dollar ballooned 0.45 cents at 73.02 cents U.S.

Suncor’s CEO says the shift to electric vehicles and other low-carbon technologies could disrupt crude oil demand on a similar scale to the COVID-19 pandemic.

Suncor shares lost 22 cents to $23.45.

CIBC raised the target price on Aritzia to $22.00 from $19.00. Aritzia shares took on 40 cents, or 2.2%, to $18.54.

CIBC cut the rating on Canopy Growth to neutral from outperform. Canopy Growth dumped $2.23, or 9.2%, to $21.98.

RBC raised the target price on Enghouse Systems to $67.00 from $58.00. Enghouse slid 17 cents to $59.67.

President Donald Trump on Friday ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China, but stopped short of calling an immediate end to privileges that have helped the territory remain a global financial center.

On matters macroeconomic, the headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI®) registered 40.6 in May, up from 33.0 in April but still well below the neutral 50.0 threshold.

The latest declines in output, new orders and employment were all less severe than in April, but still the second-fastest since the survey began nearly 10 years’ ago.

ON BAYSTREET

The TSX Venture Exchange continued on the march, accumulating 6.68 points or 1.2%, to 560.45.

All but three of the 12 TSX subgroups were lower, as health-care doffed 1.6%, consumer staples let go of 0.9%, and utilities sank 0.7%.

The three gainers were financials, ahead 1.1%, consumer discretionary stocks, up 1%, and real-estate, moving up 0.4%.

ON WALLSTREET

U.S. stocks hovered around the flatline on Monday to start June trading as investors hoped to extend gains seen across both May and April.

The Dow Jones Industrials squeezed out gains of 31.03 points to 25,414.14,

The S&P 500 crept up 4.34 points to 3,048.65.

The NASDAQ Composite picked up 29.64 points to 9,519.51,

UnitedHealth and Pfizer had the largest negative impacts on the blue-chip Dow and collectively shaved about 35 points off the index.

Pfizer, which reported disappointing trial results from a potential breast cancer treatment, also led the S&P 500 lower with a decline of more than 7%.

The muted trading on Monday came after the S&P 500 and Dow each gained at least 3% last week while the NASDAQ advanced 1.8% to close out May. Those gains were propelled by increasing bets by traders that the global economy will successfully reopen after the coronavirus forces a shutdown of most economic activity.

Last week’s gains led the major averages to their first back-to-back monthly advances since late 2019. The Dow advanced 4.3%, and S&P 500 gained 4.5%, for May while the NASDAQ amassed 6.8%.

Stocks closely linked to the economy reopening continued their gains on Monday. Carnival, Norwegian Cruise Line and Royal Caribbean were all up at least 4%. Hilton Worldwide climbed 2.6% and Marriott International advanced 4.8%. American Airlines moved higher 6.3% and

Delta jumped 4.3%, respectively, while United strengthened 6.2%.

More than six million coronavirus cases have been confirmed globally, including over 1.7 million in the U.S., according to Johns Hopkins University. However, Novavax said last week is started Phase 1 clinical trials for its coronavirus vaccine candidate while Moderna said May 18 its early stage vaccine trial had yielded positive results.

Prices for the 10-Year Treasury gained ground, lowering yields to 0.65% from Friday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices handed over 56 cents to $34.93 U.S. a barrel.

Gold prices erased $5.70 to $1,746.00 U.S. an ounce.

(Visited 1 times, 1 visits today)