TSX Drives to 3-week High

Pembina, Onex in Forefront

Canada's main stock index climbed to a three-week high on Monday as financial and materials companies led broad-based gains.

The S&P/TSX Composite Index increased 32.26 points to begin Monday and the week at 15,670.71

The Canadian dollar fell 0.24 cents to 78.82 cents U.S.

Newcrest Mining said it had invested $250 million to buy a 27.1% stake in Lundin Gold as the gold major ramps up its exposure to Ecuador to secure growth.

Lundin took on 10 cents, or 1.2%, to $8.64.

Brookfield Energia Renovável SA, a Brazil-based unit of Canada's Brookfield Asset Management, abandoned a plan to make a capital injection of 1.4 billion reais in Brazil's Renova Energia SA, which would give it a controlling stake in the company.

Brookfield eked up two cents to $51.21.

TD Securities cut the target price on Pembina Pipeline to $51.00 from $53.00. Pembina shares sank 31 cents to $42.18.

RBC raised the target price on Onex Corp. to $105.00 from $103.00. Onex gained $1.73, or 1.9%, to $93.90.

ON BAYSTREET

The TSX Venture Exchange recovered 7.45 points to 833.54

Only consumer discretionary felt bruises at Monday’s open, losing 0.1%. Everything else among the 12 TSX subgroups reached for the stars, gold soaring 1.4%, while materials improved 0.8%, and real-estate gained 0.4%.

ON WALLSTREET

U.S. stocks traded sharply higher Monday, regaining roughly half of their correction-level losses amid stabilization in Treasury rates.

The Dow Jones Industrials rocketed 174 points to begin Monday at 25,483.99, with industrial titans Boeing and 3M contributing the most to the blue-chip index.

The S&P 500 added 11.77 points to 2,759.07, with strong performance in telecommunications and technology stocks.

The Dow and S&P 500 have more than halved their correction losses; both are down roughly 4% from all-time highs notched in January.

The NASDAQ Composite gained 37.84 points to 7,374.53, thanks to a 1.2% rally in Apple shares and a 1.4% gain in Intel.

General Electric broke below $14 per share after naming three new directors to its board. The latest depreciation in shares prices comes after months of turbulent times for the original Dow member; new chief executive officer John Flannery has pledged to trim the company by exiting several businesses.

In other data news, sales of new homes fell for a second straight month in January. The Commerce Department said on Monday that sales dropped 7.8%; economists had forecast new home sales up nearly 4%

The contraction in sales is being blamed largely on a shortage in houses as well as rising mortgage rates.

Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.84% from Friday’s 2.87%. Treasury prices and yields move in opposite directions.

Oil prices settled 33 cents a barrel to $63.22 U.S.

Gold prices acquired five dollars to $1,335.30 U.S. an ounce.