Positive Finish for TSX Gets Month off to Good Start

Consumer Stocks Very Much in Focus

Equity markets in Toronto started the week and month off on the right foot, as investors overcame any trepidation over the twin troubles of COVID-19 and racial tensions in many American cities.

The S&P/TSX Composite Index gained 43.38 points to conclude Monday at 15,236.21.

The Canadian dollar leaped 1.1 cents at 73.68 cents U.S.

Consumer discretionary stocks led the charge, with Aritzia improving $1.07, or 5.9%, to $19.21, and BRP taking on $2.39, or 5%, to $50.07.

Energy stocks rallied, on the backs of Frontera Energy, adding 22 cents, or 6.2%, to $3.75, and MEG Energy, jumping 19 cents, or 5.9%, to $3.39.

Financials were also richer, as Alaris Royalty accumulated 97 cents, or 10%, to $10.70, while Canadian Imperial Bank of Commerce amassed $2.58, or 2.9%, to $90.87.

Consumer staples were the least-well-off of the losing subgroups, with Jamieson Wellness down $1.04, or 3.1%, to $32.17, while Metro fell back $1.59, or 2.8%, to $55.83.

Among information technology concerns, Kinaxis tunneled $4.13, or 2.4%, to $173.65, while Constellation Software dropped $42.78, or 2.7%, to $1,522.35.

In the health-care sector, Canopy Growth got pummeled $1.95, or 8.1%, to $22.26, while Sienna Senior Living stumbled 13 cents, or 1.4%, to $9.42.

President Donald Trump on Friday ordered his administration to begin the process of eliminating special U.S. treatment for Hong Kong to punish China, but stopped short of calling an immediate end to privileges that have helped the territory remain a global financial center.

On matters macroeconomic, the headline seasonally adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index registered 40.6 in May, up from 33.0 in April but still well below the neutral 50.0 threshold.

The latest declines in output, new orders and employment were all less severe than in April, but still the second-fastest since the survey began nearly 10 years' ago.

ON BAYSTREET

The TSX Venture Exchange zoomed 10.21 points or 1.8%, to 563.98.

The 12 TSX subgroups were half-and-half, with consumer discretionary stocks vaulting 1.9%, energy, up 1.8%, and financials, ahead 1.6%.

The six laggards were weighed most by consumer staples, cratering 2.2%, information technology, down 1.1%, and health-care, sicker by 1%.

ON WALLSTREET

U.S. stocks rose on Monday to start off the new month amid increasing hope of a successful reopening of the economy. Those gains come after back-to-back monthly increases for stocks.

The Dow Jones Industrials enjoyed strong gains of 91.91 points to 25,475.02.

The S&P 500 added 11.42 points to 3,055.73.

The NASDAQ Composite picked up 62.18 points to 9,552.05.

The S&P 500 closed at its highest level since early March while the NASDAQ ended the session at levels not seen since late February.

Stocks closely linked to the economy reopening led the slight gains. Carnival, Norwegian Cruise Line and Royal Caribbean were all up at least 6.7%. Hilton Worldwide climbed 3.3% and Marriott International advanced 7.4%. American Airlines sprang up 5.8% and Delta advanced 3.8%, while United went airborne 5.1%.

Those gains were slightly offset, however, by a 7.2% drop in Pfizer shares.

Last week’s gains led the major averages to their first back-to-back monthly advances since late 2019. The Dow advanced 4.3%, and S&P 500 gained 4.5%, for May while the NASDAQ amassed 6.8%.

More than six million coronavirus cases have been confirmed globally, including over 1.7 million in the U.S., according to Johns Hopkins University. However, Novavax said last week is started Phase 1 clinical trials for its coronavirus vaccine candidate while Moderna said May 18 its early stage vaccine trial had yielded positive results.

Prices for the 10-Year Treasury slid, raising yields to 0.66% from Friday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices eked up four cents to $35.53 U.S. a barrel.

Gold prices dropped 90 cents to $1,750.80 U.S. an ounce.