Equity markets in Canada’s largest centre rose on Tuesday, tracking a rise in global stock markets, as investors bet on central banks sticking to a loose monetary policy against the backdrop of a slowdown in the post-pandemic economic rebound.
The TSX Composite added 36.7 points to begin a short week at 20,858.13, another intraday record.
The Canadian dollar subtracted 0.4 cents to 79.39 cents U.S.
North American markets were closed Monday for Labour Day
Kansas City Southern said on Saturday it would start talks with Canadian Pacific Railway because CP's unsolicited proposal to acquire it could reasonably be expected to lead to a better proposal than one made by Canadian National Railway.
In New York, Kansas City Southern shares plummeted $1.55 to $290.08. In Toronto, CP shares inched up four cents to $90.63, while shares in CN faded 30 cents to $158.71.
Barclays raised the price target on Bank of Montreal to equal weight from underweight. BMO shares zoomed $1.29, or 1%, to $129.02.
Canaccord Genuity cut the rating on Shaw Communications to hold from buy. Shaw shares dropped nine cents to $37.16.
Barclays raised the rating on Toronto-Dominion Bank to overweight from equal weight. TD shares raced 98 cents, or 1.2%, to $83.43.
ON BAYSTREET
The TSX Venture Exchange gained 1.26 points, to 924.48.
Seven of the 12 TSX subgroups were lower in the first hour, with real-estate plunging 1%, gold off 0.9%, and consumer staples sliding 0.6%.
The five gainers were led by financials, up 0.6%, while health-care and consumer discretionary stocks each accumulated 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Tuesday amid lingering concerns about the delta variant’s impact on the economic reopening.
The 30-stock index plummeted 283.52 points to 35,085.57, dragged down by a 1.9% loss in Boeing’s stock.
The S&P 500 lost 17.36 points to 4,518.07.
The NASDAQ Composite 6.32 points, to 15,369.84.
Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. Goldman now sees 5.7% annual growth in 2021, below the 6.2% consensus. The firm cut its fourth-quarter gross domestic product outlook to 5.5%, down from 6.5%.
Boeing shares were lower after the Wall Street Journal reported deliveries for the 787 Dreamliner would likely be further delayed. PPG Industries, a paint maker, warned that sales may fall short this quarter because of logistics issues and higher commodity costs. Shares of PPG Industries ticked 2% lower in early trading.
Drug stocks including Johnson & Johnson, Merck and Amgen were slightly lower after Morgan Stanley downgraded the three stocks.
Prices for 10-Year Treasurys sagged, raising yields to 1.38% from Friday’s 1.32%. Treasury prices and yields move in opposite directions.
Oil prices reversed 52 cents to $68.77 U.S. a barrel.
Gold prices plunged $35.60 to $1,798.10 U.S. an ounce.
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