Canada's main stock index rose big time on Monday as energy and materials stocks tracked gains in commodities, while data showed that the domestic manufacturing activity grew at a faster pace in February than in the prior month.
The TSX recovered from the doldrums of last week and began March with a flourish, a gain of 225.45, or 1.3%, to 18,285.71.
The Canadian dollar picked up 0.17 cents to 78.92 cents U.S.
CAE is nearing a deal to buy L3Harris Technologies’ military training division for $1.05 billion U.S., the Wall Street Journal reported on Sunday.
CAE shares vaulted $3.70, or 11%, to $37.38.
TD Securities raised the target price on Advantage Oil & Gas to $3.25 from $2.50. Advantage had the advantage over Friday’s prices, eight cents, or 3.1%, to $2.68.
CIBC raised the rating on Canadian Western Bank to outperform from neutral. The bank’s shares docked a penny to $33.44.
CIBC raised price target on First Quantum Minerals to $35.00 from $24.00. First Quantum shares hiked 64 cents, or 2.3%, to $28.07.
Sprott Inc. rose 5.8% after the asset management firm announced the renewal of normal course issuer bid. Sprott shares increased $2.87, or 6.5%, to $47.17.
Cargojet fell $12.59, or 6.6%, to $178.48, the most on the TSX, after the company reported fourth-quarter results and the second biggest decliner was food products producer Maple Leaf Foods, down 38 cents, or 1.4%, to $26.00.
On the economic front, Markit Canada reported its Manufacturing Purchasing Managers’ Index registered 54.4 in January, down sharply from 57.9 in December.ood products, as well as energy and petroleum products.
ON BAYSTREET
The TSX Venture Exchange restocked 19.99 points, or 1.8%, to 1,038.48.
All 12 TSX subgroups gained ground, as health-care sprinted 3%, energy soared 2.1%, and industrials proved 1.5% stronger.
ON WALLSTREET
U.S. stocks rose sharply on Monday, as Treasury yields retreated from last week’s highs, easing concerns about inflation and that higher rates would undermine equity valuations.
The Dow Jones Industrials made up for what it lost last week, gaining 633.9 points, or 2.1%, to begin a new week and new month at 31,566.27, led by Boeing which climbed 6.8%.
The S&P 500 recouped 74.98 points, or 2%, to 3,886.13, as all 11 sectors traded in the green
The NASDAQ Composite recovered from its recent slump, picking up 72.91 points to 13,192.34.
The sudden spike in the benchmark yield rattled stocks last week as rising rates can threaten the relative appeal of equities and compress stock valuation by reducing the value of future cash flows.
Economic reopening plays like Carnival and American Airlines were higher by at least 3% amid optimism on vaccines and economic reopening. Meanwhile, high-growth tech shares outperformed as rates fell. Apple and Tesla both rose 3%.
Boosting sentiment on the vaccine front, the Centers for Disease Control and Prevention advisory panel voted unanimously Sunday to recommend the use of Johnson & Johnson’s one-shot COVID-19 vaccine for people 18 years of age and older. The company expects to ship four millions doses initially.
Last week, the blue-chip Dow and S&P 500 lost 1.7% and 2.5%, respectively. The technology-heavy NASDAQ dropped more than 4% during the same period, after suffering its worst one-day selloff since October on Thursday. Technology companies rely on being able to borrow money for a low rate in order to invest in future growth.
The major averages rose for the month of February, bolstered by a strong earnings season, positive news on the vaccine rollout and hopes of another stimulus package.
The Dow gained 3.2% for its third positive month in four in February. The S&P 500 gained 2.6% and the NASDAQ gained nearly 1% for its fourth positive month in a row.
Prices for 10-Year Treasurys dropped a bit, boosting yields to 1.42% from Friday’s 1.41%. Treasury prices and yields move in opposite directions.
Oil prices regrouped 40 cents to $61.90 U.S. a barrel.
Gold prices jumped $8.60 to $1,737.40
