TSX Still in Positive Territory

Share with us

Equities in Toronto recouped early losses on Monday helped by tentative signs of a rebound in business activity and as a milder-than-feared U.S. response to China also boosted sentiment.

The S&P/TSX Composite Index gained 46.31 points to reach noon Monday at 15,239.14.

The Canadian dollar leaped 0.85 cents at 73.41 cents U.S.

The largest percentage gainer on the TSX was pot producer Hexo Corp., up eight cents, or 9.4%, to 93 cents, after the company’s Belleville plant received a sales license.

Canopy Growth fell $2.41, or nearly 10%, the most on the TSX, to $21.80, after multiple brokerages lowered their ratings on the stock.

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 zoomed 7.84 points or 1.4%, to 561.61.

Seven of the 12 TSX subgroups were lower, as consumer staples lost 1.9%, health-care doffed 1.7%, and utilities sank 1%.

The five gainers were led upwards by financials, ahead 2.2%, consumer discretionary stocks, up 1.4%, and real-estate, moving up 1.1%.

ON WALLSTREET

U.S. stocks rose slightly 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

Stocks closely linked to the economy reopening led the slight gains. 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 took on 6.3% worth of lift, and Delta advanced 4.3%, respectively, while United soared 6.2%.

Those gains were capped, however, by a 7.6% drop in Pfizer shares.

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%.

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 0.67% from Friday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices handed over 78 cents to $34.71 U.S. a barrel.

Gold prices gained $1.30 to $1,753.00 U.S. an ounce.

(Visited 2 times, 1 visits today)