Stocks Climb on Oil Prices

Boeing Again Highlighted

Canada's main stock index opened marginally higher on Monday, as energy shares were boosted by oil prices, which rose after supply cuts led by the Organization of the Petroleum Exporting Countries.

The S&P/TSX Composite Index gained 40.89 points to open Monday at 16,181.24

The Canadian dollar inched up 0.03 cents at 74.97 cents U.S.

Air Canada and United Airlines on Friday became the first major carriers in North America to warn of negative impacts on business due to the grounding of Boeing's 737 MAX planes.

National Bank of Canada cut the target price on AutoCanada to $10.00 from $12.50. AutoCanada subtracted 14 cents, or 1.2%, to $11.60.

CIBC cut the target price on North West Co to $30.00 from $31.00. North West shares lost 51 cents, or 1.7%, to $29.55.

Canaccord Genuity initiated coverage on Terago Inc. with a "buy" rating and $12.50 price target. Terago shares were unchanged at $10.90.

On the economic front, Statistics Canada said foreign investors bought up $28.4 billion of Canadian securities in January, following a significant divestment in December. Meanwhile, Canadian investors reduced their holdings of foreign securities by $8.8 billion, led by sales of U.S. shares.


The TSX Venture Exchange gained 2.38 points to 630.15

All but three of the 12 TSX subgroups gained ground soon after Monday’s opening, as health-care grew 1.1%, with real-estate and energy each gaining 0.5%.

The three laggards were consumer staples and industrials, each backpedaling 0.2%, while utilities dipped 0.1%.


Investors were cautious, to start off a busy week which will be highlighted by a key Federal Reserve meeting.

The Dow Jones Industrial Average was unchanged at 25,850.01, as whatever gains the Big Board enjoyed were capped by losses in Boeing.

The S&P 500 acquired 11.11 points to 2,833.59. The S&P 500 is up more than 12% this year and is on pace to post its biggest quarterly gain since the third quarter of 2009.

The NASDAQ Composite gained 41.72 points to 7,730.25, but its gains were kept in check by a slide in Facebook shares.

Boeing fell more than 2.5% after The Wall Street Journal reported the Department of Transportation and federal prosecutors were scrutinizing the development of the company's 737 Max planes. This comes after an Ethiopian Airlines flight involving the 737 Max 8 jet crashed last week.

Facebook shares also fell nearly 3% after an analyst at Needham downgraded the company to hold from buy, citing worries about Facebook's pivot to privacy and encrypted messages as well as the possibility of more regulatory scrutiny.

Investors braced themselves for a busy week highlighted by a Federal Reserve meeting that kicks off on Tuesday. Market expectations for a rate hike are at zero, according to the CME Group's FedWatch tool. However, investors will look for clues about the central bank's economic outlook.

The Fed signaled it will be "patient" in raising rates at its previous meeting this year.

Prices for the benchmark 10-year U.S. Treasury slid, raising yields to 2.60% from Friday’s 2.59%. Treasury prices and yields move in opposite directions.

Oil prices were up six cents to $58.58 U.S. a barrel.

Gold prices gained $2.70 to $1,305.60 U.S. an ounce.