Equities in Canada’s largest centre rose to a month’s high on Monday lifted by a major rally in energy stocks as oil prices rose amid signs of progress in resolving a trade dispute between the United States and China.
The TSX Composite Index gained 63.19 points to greet noon EST at 16,657.26
The Canadian dollar slipped 0.01 cents to 76.08 cents U.S.
The largest percentage gainer on the TSX was Bombardier, which jumped 12 cents, or 6.6%, to $1.93.
The Stars Group fell 82 cents, or 2.8%, the most on the TSX, to $28.29, followed by First Majestic Silver, down 38 cents, or 2.6%, to $14.06.
ON BAYSTREET
The TSX Venture Exchange inched ahead 0.31 at 541.80
Seven of the 12 Toronto subgroups were negative by noon hour, with gold fading 1.4%, information technology down 0.8%, and consumer staples, sliding 0.6%.
The five gainers were led by energy, up 3.4%, consumer discretionary, improving 0.8%, and financials, ahead 0.6%.
ON WALLSTREET
The Dow Jones Industrial Average – in fact, all three major indices -- reached milestones on Monday as investor sentiment was lifted by optimism around a potential U.S.-China trade deal.
The 30-stock index climbed 116.77 points – off its highs of the morning -- to 27,464.13, to its first high since mid-July. Chevron led the way higher for the Dow, rising 4.3%. Trade bellwethers Boeing and Caterpillar also traded higher.
Apple is by far the best-performing Dow stock since the index hit its previous record, rallying more than 25%. Intel, J.P. Morgan Chase and United Technologies are all up at least 10% in that time.
Monday’s rise brought the Dow’s year-to-date gain to nearly 18%. That would be the biggest one-year gain for the Dow since 2017, when it jumped 28.2%.
The S&P 500 added 13.23 points to 3,080.16, yet another fresh record high. The S&P 500 is up more than 22% for 2019 and is on pace for its biggest one-year gain since 2013, when it rallied nearly 30%.
The NASDAQ Composite Index popped 43.47 points to 8,438.83, also an all-time high. The tech-rich index is also up more than 27% this year.
Meanwhile, the corporate earnings season has largely been better than expected. In all, 75% of the 360 S&P 500 companies that have reported have surpassed analyst expectations.
Under Armour posted Monday quarterly numbers that topped analyst expectations. However, the stock fell more than 15% after the company cut its 2019 revenue forecast, citing lower inventories and problems around its direct-to-consumer channels.
Uber Technologies and Shake Shack are among the companies set to report after the close Monday.
U.S. Commerce Secretary Wilbur Ross said Sunday that American firms would be granted licenses to sell to Chinese telecom giant Huawei “very shortly.” Ross’ comments came after China said Friday it reached a consensus with the U.S. in principle following trade talks last week.
Prices for the benchmark 10-year U.S. Treasury slipped, raising yields to 1.78% from Friday’s 1.72%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.02 to $57.22 U.S. a barrel.
Gold prices handed back $1.60 to $1,509.80 U.S. an ounce.
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