Stocks Start Monday in Two Directions

Brookfield in Focus

Canada's main stock index rallied in the first trading session of the year on Monday, helped by gains in materials stocks, while upbeat factory data for December bolstered optimism around an economic recovery.

The TSX was off its highs of the morning, but still positive by 76.3 points Monday to charge into noon hour at 17,509.66.

The Canadian dollar docked 0.16 cents to 78.43 cents U.S.

The largest percentage gainer on the TSX was Brookfield Property Partners LP, which jumped $3.22, or 17.5%, to $21.63, after parent
Brookfield Asset Management offered to take its real estate arm private in a $5.9-billion deal.

Its gains were followed by SilverCrest Metals, which rose $1.68, or 11.8%, to $15.87, after the miner's Canadian subsidiary entered into a credit agreement with an affiliate of RK Mine Finance to provide a secured project financing facility for a total of $120 million U.S.

Ritchie Bros. Auctioneers fell $3.07, or 3.5%, the most on the TSX, to $85.41, and the second-biggest decliner was e-commerce firm Shopify, down $17.04, or 1.2%, to $1,420.28.

Data Monday showed Canadian factory activity expanded at its fastest pace on record in December as new orders and production climbed, while manufacturers grew more optimistic that output would continue to rise in 2021

ON BAYSTREET

The TSX Venture Exchange climbed 13.73 points to 889.09, after a spectacular year in which the index gained 298 points, or 51.6%.

Seven of the 12 TSX subgroups were higher, as gold stocks spread their wings 6.7%, materials were up 5.6%, and health-care jumped 4.2%.

The five laggards were co-weighed by financials and consumer discretionary issues, down 1.1% each, while industrials slid 0.5%.

ON WALLSTREET

Stocks fell on Monday, the first trading day of 2021, following a wild but highly profitable year for investors.

The Dow Jones Industrials tumbled 559.66 points, or 1.8%, to reach noon at 30,046.82.

The S&P 500 faded 62.31 points, or 1.7%, to 3,693.76.

The NASDAQ swooned 186.65 points, or 1.5%, to 12,701.63.

Boeing and Coca-Cola were the worst-performing Dow components, falling 3.9% and 4.2%, respectively. Real estate fell 2.2% to lead the S&P 500 lower.

Monday’s decline came as traders fretted over the growing number of coronavirus cases around the world.

Data compiled by Johns Hopkins University showed more than 20 million COVID-19 infections have been confirmed in the U.S. Several cases of a new coronavirus strain have also been confirmed across the country. Globally, more than 85 million cases have been confirmed. In the U.K., the BBC reported the country would impose Tier 4 restrictions across the country.

The 30-stock Dow ended last year with an advance of 7.3%, and the S&P 500 rose 16.3% in that time. At one point in 2020, the two market benchmarks were down more than 30% as the coronavirus pandemic ravaged the global economy.

The real standout of 2020 was the NASDAQ, which surged 43.6% for its biggest one-year gain since 2009. The NASDAQ’s outperformance came as investors and traders flocked into tech stocks in the throes of the COVID-19 outbreak.

Unprecedented fiscal and monetary support for the economy — coupled with the development and rollout of multiple COVID-19 vaccines — helped the market recover from its massive drop to trade back at all-time highs.

The U.S. rollout of multiple COVID-19 vaccines has recently been slowed down due to supply constraints.

The head of Operation Warp Speed said on Sunday that the U.S. could ramp up its vaccine rollout by giving a group of Americans half doses of the drug developed by Moderna.

Moderna shares added 5.3%.

Tesla shares gained 4.8% on Monday, hitting an all-time high, after the electric carmaker said Saturday that it delivered 180,570 electric vehicles last quarter, beating expectations.

Prices for the 10-Year Treasury were slightly higher, lowering yields to back to Thursday’s 0.92%. Treasury prices and yields move in opposite directions.

Oil prices dipped $1.07 to $47.45 U.S. a barrel.

Gold prices screamed higher $50.00 to $1,945.10 U.S. an ounce.