Stocks in Canada’s largest market eked higher early Monday, helped by gains in heavyweight financial and energy sectors while gold miners weighed.
The S&P/TSX Composite Index gained 21.27 points to begin the day and the week at 15,194.20
The Canadian dollar dipped 0.26 cents to 81.98 cents U.S.
Unifor said its members at General Motors’ CAMI auto assembly plant in Ingersoll, Ontario are on a strike from late Sunday night, as it failed to reach a tentative agreement with the automaker.
RBC raised the price target on AGF Management to $8.50 from $7.00. AGF shares gained 13 cents to $7.80.
RBC raised the price target on Great Canadian Gaming to $41.00 from $36.00. Great Canadian Gaming shares lost 46 cents to $34.69.
On the economic slate, Statistics Canada reported that offshore investors purchased $24 billion in Canadian securities in July, led by record acquisitions of Canadian bonds. At the same time, Canadian investors reduced their holdings of foreign securities by $1.8 billion, following strong acquisitions in June.
ON BAYSTREET
The TSX Venture Exchange demurred 2.21 points early Monday to 777.45
Eight of the 12 TSX subgroups began the session on the right foot, as energy and industrial stocks each climbed 0.4%, while consumer discretionary issues improved 0.3%.
The four laggards were weighed most by gold, off 1.2%, real-estate, down 0.3%, and consumer staples, sliding 0.2%.
ON WALLSTREET
U.S. stocks traded higher on Monday after a big deal in the defense sector was struck. Investors also looked ahead to a key Federal Reserve meeting.
The Dow Jones Industrials gained 61.32 points to 22,329.66, after hitting a record. Caterpillar and Goldman Sachs contributed the most to the gains.
The S&P 500 collected 6.7 points to 2,506.93, also an all-time high, as financials and materials led advancers.
The NASDAQ gathered 24.94 points to 6,473.41, also a new peak.
Shares of Orbital ATK rose nearly 20% in early trade after announcing it is being bought by defense giant Northrop Grumman. In a release, the two companies said Northrop would pay $9.2 billion in cash and debt. Orbital shareholders will receive all-cash consideration of $134.50 a share, a 22% premium to its Friday close of $110.04.
The deal comes two weeks after United Technologies announced its acquisition of Rockwell Collins. On Sept. 4, United Tech said it would pay $30 billion for Rockwell.
Investors were also preparing themselves for the start of the Fed's meeting this week. Market participants are largely expecting interest rates to remain unchanged. But Wall Street is expecting the Fed to announce the unwinding of its $4.5-trillion balance sheet. The Fed accrued its massive portfolio during the Financial Crisis.
Prices for the benchmark 10-year Treasury note were lower, raising yields to 2.22% from Friday’s 2.2%. Treasury prices and yields move in opposite directions.
Oil prices gave back six cents to $49.83
Gold prices stepped back $9.20 to $1,316.00 U.S. an ounce.
