TSX Flat by Noon

Village Farms in Focus

Canada's main stock index returned Monday to the perches they’d left on Friday, as losses in health-care and tech stocks weighed on the index.

The TSX faded 1.16 by noon EDT Monday to 19,471.58

The Canadian dollar regeained 0.16 cents to 82.69 cents U.S.

The largest percentage gainers on the TSX were Ero Copper which jumped 3.3%, and Labrador Iron Ore Royalty which rose 3.3%, after TD Securities raised its target price on the stock to $48 from $44.

Village Farms International fell 8.6%, the most on the TSX, after the company posted a quarterly loss of 10 cents per share.

The second biggest decliner was Ballard Power Systems, down 5.5%.

ON BAYSTREET

The TSX Venture Exchange ducked 2.44 points to 952.54.

Seven of the 12 subgroups remained positive, though, by lunch hour, led consumer staples, better by 1.4%, communications, improving 1%, and financials, ahead of Friday 0.6%.

The five laggards were weighed mostly by health-care, sliding 3%, information technology, shaking off 1.3%, and consumer discretionary, off 0.6%.

ON WALLSTREET

The Dow Jones Industrial Average climbed to a record high on Monday amid strong gains in energy stocks, building on the benchmark’s recent strong rally. Big Tech stocks came under pressure, however, weighing on the NASDAQ Composite

The 30-stock index popped 270.44 points to register another all-time record of 35,048.20, boosted by a jump in Dow Inc and Chevron shares.

The S&P 500 retreated 1.48 points to 4,231.12.

The NASDAQ Composite stumbled 190 points, or 1.4%, to 13,562.23.

Gasoline futures rose after a ransomware attack forced the closure of the largest U.S. fuel pipeline over the weekend. Colonial Pipeline, which operates a 5,500-mile system, said it was forced to halt the transport of fuel from the Gulf Coast to the New York metro area on Friday as it "took certain systems offline to contain the threat."

Colonial said Sunday evening that some of its smaller lateral lines once again online, but that its main lines are still shut down.
Shares of energy stocks gained including Marathon Oil, Occidental Petroleum and Devon Energy. Chevron was up 1.7%. Exxon was also higher.

Bigger tech stocks declined, however, weighing on sentiment. Tesla dropped more than 4%. Facebook fell over 4%, while Alphabet dipped more than 2% after a downgrade by Citigroup.

The market will face a key test on Wednesday with the release of inflation data. Investors fear a scenario where the Federal Reserve is forced to cut back its easy money policies to curb inflation, before the economy has fully recovered from the pandemic.

Prices for 10-Year Treasurys lost ground, raising yields to Friday’s 1.58%. Treasury prices and yields move in opposite directions.

Oil prices eked up a penny to $64.91 U.S. a barrel.

Gold prices gained $8.50 to $1,839.80 U.S. an ounce.