TSX Strong Monday

Vermilion, Hudbay in Focus

Stocks continued their climb Monday as indexes endeavoured to recover from what’s been a very rough month of June. The surge was headed by resource stocks.

The S&P/TSX hiked 195.41 points, or 1%, higher. to conclude Monday at 19,258.32.

The Canadian dollar forged ahead 0.12 cents to 77.65 cents U.S.

Markets in Canada will be shuttered Friday for Canada Day.

Energy stocks led the surge, with Vermilion Energy soaring $2.69, or 11.7%, to $25.74, while Advantage Energy progressing 52 cents, or 6.7%, to $8.28.

Among materials, Hudbay Minerals acquired 38 cents, or 6.9%, to $5.87, while Ivanhoe Mines picked up 52 cents, or 6.9%, to $8.01.

Utilities also improved, most notably, TransAlta by 30 cents, or 2.1%, to $14.45, while Fortis seized $1.03, or 1.7%, to $60.80.
Techs weighed things down, though, with Descartes Group sinking $4.84, or 5.7%, to $79.78, while HUT 8 Mining dipped 13 cents, or 5.8%, to $2.10.

In real-estate, FirstService went south $4.13, or 2.6%, to $155.07, while Dream Office REIT let go of 28 cents, or 1.4%, to $19.39.

Health-care felt poorly also, with Well Health Technologies handed over 12 cents, or 3.5%, to $3.31, while Cronos Group dipped three cents to $4.00.

CBC News quoted Finance Minister Chrystia Freeland as saying Canada still has a path to a "soft landing," where it could stabilize economically after the blow by the COVID-19 pandemic, without facing a severe recession that many fear.

ON BAYSTREET

The TSX Venture Exchange gained 5.03 points to close Monday to 652.36.

Eight of the 12 TSX subgroups pointed upwards, with energy jumping 4.7%, materials rocketing 2%, utilities, progressing 1%.

The four laggards were weighed most by information technology, off 1.5%, real-estate, weakening 0.4%, and health-care, down 0.3%.


ON WALLSTREET

U.S. stocks fell on Monday following a major rebound last week from this year’s steep declines. Wall Street is preparing to wrap up the worst first half for stocks in decades.

The Dow Jones Industrials faltered 62.42 points to 31,438.26.

The S&P 500 dropped 11.63 points to 3,900.11.

The NASDAQ Composite slumped 83.07 points to 11,524.55.

The major averages struggled as investors weighed whether stocks have reached a bottom or are instead briefly rebounding from oversold conditions.

Stocks could get a lift in the near term this week, as investors rebalance their holdings for the end of the quarter.

Etsy was the top decliner in the S&P, down 3.6% following a downgrade by Needham. Shares of Spirit Airlines fell more than 8% after the company said it would accept the latest takeover bid from Frontier Group.

The energy sector was a notable gainer, up 2.8% for the day. Valero Energy climbed 8%, while Devon Energy advanced 7.5%. Marathon Oil added 4.9%.

BioNTech shares also advanced by 7.2% after the drug maker said its Omicron-based Covid-19 booster generates an improved immune response against that variant.

Nike will report earnings for its fiscal fourth quarter after the bell Monday, ahead of a handful of other key reporters this week including Bed Bath & Beyond, General Mills, Constellation Brands and Walgreens.

Treasury prices were lower, raising yields to 3.20% from Friday’s 3.14%. Treasury prices and yields move in opposite directions.

Oil prices improved $2.12 to $109.74 U.S. a barrel.

Gold prices slid six dollars to $1,824.30 U.S. an ounce.