TSX Totters into Red

Cronos, The Bay in Focus

Equities in Toronto waxed and waned Monday, before finishing the day in slightly negative territory.

The S&P/TSX Composite Index sank 14.7 points to conclude Monday at 16,216.26

The Canadian dollar zoomed 0.53 cents to 75.37 cents U.S.

Health-care stocks pulled away from the rest of the field, primarily, Cronos Group, ballooning $2.10, or 9.9%, to $23.22, while Aurora Cannabis tacked on 42 cents, or 4.2%, to $10.55.

Consumer discretionary issues also had a banner day, with Hudson’s Bay Company screaming higher $2.73, or 42.9%, to $9.10, while BRP Inc. acquired $1.45, or 3.5%, to $43.53.

Among techs, Enghouse Systems moved higher $1.92, or 5.5%, to $37.12, while Quarterhill Inc., grabbed four cents, or 2.9%, to $1.42.

Gold stocks were punished, though, as Alacer Gold faded 19 cents, or 4.9%, to $3.73, while Yamana Gold dipped 12 cents, or 4.5%, to $2.57.

Industrials took some knocks, too, as Thomson Reuters dropped $1.74, or 2%, to $87.07, while Badger Daylighting lost 69 cents, or 1.5%, to $46.46.

Energy stocks also weakened, as Kelt Exploration dived 28 cents, or 6.4%, to $4.10, while Peyto Exploration slipped 20 cents, or 4.6%, to $4.16

On the economic slate, Canada Mortgage and Housing Corporation's seasonally-adjusted annual rates of housing starts fell to 202,300 units in May, from a downwardly revised 233,400 in April, missing market expectations of 205,000.

Elsewhere, Statistics Canada reported that Canadian municipalities issued a record $9.3 billion worth of building permits in April. The increase in the value of permits was almost entirely due to a planned change in development costs in Metro Vancouver.


The TSX Venture Exchange slumped 2.11 points to 594.43

The 12 Toronto subgroups were neatly divided by the closing bell, as health-care proved 3.4% haler, while consumer discretionary stocks advanced 1.1%, and information technology strengthened 0.7%

The half-dozen laggards were saddled most by gold, down 1.3%, industrials, slouching 0.7%, and energy, 0.6% less energetic.


Stocks rose on Monday, extending last week’s big gains, after the U.S. reached an agreement with Mexico on tariffs, easing some of the trade concerns which have weighed on the market since early May.

The Dow Jones Industrial Average rose for a sixth straight session, climbing 99.99 points to close Monday at 26,083.93

The S&P 500 hiked 13.39 points to 2,886.73, and is now a little more than 2% from its intraday all-time high hit on May 1.

The NASDAQ Composite jumped 81.07 points, or 1.1%, to 7,823.17, led by Amazon.

President Donald Trump announced Sunday that proposed tariffs on Mexican imports would be suspended indefinitely. Trump said in a Twitter post that he has “full confidence” that Mexico will crack down on migration from Central America, after the two neighbors reached a consensus.

Shares of GM and Ford, two companies that had a lot to lose in a trade battle with Mexico because of their production there, gained ground Monday. GM shares picked up 1.5%, while Ford forged ahead 0.6%,

Meanwhile, investors are closely monitoring the development in the U.S.-China trade war. Trump told reporters on Monday that he believes China will make a deal with the U.S. "because they’re going to have to."

Trump and Chinese leader Xi Jinping are set to meet at the G-20 Summit later this month after both countries slapped tariffs and made tit-for-tat threats

The White House acting budget chief is reportedly seeking to delay the restrictions on Chinese telecom giant Huawei, which would halt its ability to purchase U.S.-made chips. Chipmakers Nvidia added 2.8%, and Advanced Micro Devices gained 4% on Monday following the news.

Adding to the bullish sentiment on Monday was a blockbuster deal in the aerospace industry. Raytheon and United Technologies agreed to an all-stock merger that would create a combined company with $74 billion in annual sales. Both shares surged in pre-market trading. Shares of Raytheon rose 0.7%, while shares of United Technologies fell about 3%.

Salesforce.com announced its acquisition of big data company Tableau Software on Monday. The $15.3-billion all-stock deal marks the biggest purchase in the company’s history. Tableau’s stock surged 37% on Monday and Salesforce.com fell more than 5%.

Prices for the benchmark 10-year U.S. Treasury sagged, lifting yields to 2.15% from Friday’s 2.08%. Treasury prices and yields move in opposite directions.

Oil prices dropped 66 cents to $53.33 U.S. a barrel.

Gold prices dropped $13.90 at $1,332.20 U.S. an ounce.