Lower Futures to Begin Week

Teck, Lassonde in Focus

Futures in Toronto fell on Monday, dragged down by subdued gold prices, as a stronger U.S. dollar and hopes for a swift global economic recovery dented the precious metal's safe-haven demand.

The TSX hiked 101.48 points to end Friday and the week at 18,752.58. The index lost, however, 101 points, or 0.54%, over the last five sessions.

The Canadian dollar crept lower 0.02 cents at 79.44 cents U.S.

June futures slumped 0.3% Monday.

Teck Resources on Friday pleaded guilty to two charges of violation under the Fisheries Act and said will pay a penalty of $60 million

National Bank raised the target price on Lassonde Industries to $186 from $182

Scotiabank raised the target price on AGF Management to $8.00 from $7.50

Scotiabank raised the target price on Altius Minerals to $17.00 from $16.00

ON BAYSTREET

The TSX Venture Exchange regained 6.69 points to 943.29. On the week, this index also got punished, just fewer than 52 points, or 5.2%.

ON WALLSTREET

Stock futures added to losses Monday amid weakness in bank stocks, though media shares rebounded after a stunning late-week selloff Friday.

Futures for the Dow Jones Industrials plummeted 166 points, or 0.5%, to 32,785.

Futures for the S&P gave back 17.5 points or 0.4%, to 3,947.25.

The NASDAQ Composite index backed off 16.75 points, or 0.1%, to 12,950 Monday.

Shares of ViacomCBS and Discovery both rebounded after coming under intense selling pressure last week. The two companies were believed to be hit by forced liquidation of positions held by the multibillion dollar family office Archegos Capital Management.

Discovery gained more than 4% in pre-market trading Monday while ViacomCBS rose more than 2%. The two companies had lost 27% apiece during Friday’s selloff.

Elsewhere, Boeing was up 2.6% pre-market on news that Southwest Airlines had added 100 orders for the airliner’s 737 Max jet. The first 30 jets are scheduled for delivery in 2022.

However, futures overall were indicating negative. Bank stocks weighed on the Dow industrials, with Goldman Sachs down more than 3% and JPMorgan Chase off 1.4%. The weakness came as government bond yields edged lower to start the week.

On Friday, all three major benchmarks rallied to their session highs into the close with the blue-chip Dow closing about 450 points higher.

The S&P 500 eventually climbed 1.7% to hit a record closing high. The NASDAQ Composite wiped out a 0.8% loss and ended Friday 1.2% higher.

Traders are bracing for heightened volatility during this holiday-shortened week with quarter-end rebalancing among pension funds and other big investors. The recent swift advance in bond yields could set up money managers for big adjustments in their portfolios.

The Dow has risen 6.9% and the S&P 500 is up 4.3%, so far in March. The tech-heavy NASDAQ, however, has dipped 0.4% this month as some investors jumped high-flying technology names amid rising yields.

Investors are awaiting updates from President Joe Biden about his infrastructure plan which could cost north of $3 trillion. The president is expected to unveil his plan when he travels to Pittsburgh on Wednesday

Overseas, in Japan, the Nikkei 225 acquired 0.7% Monday, while in Hong Kong, the Hang Seng gained less than two points.

Oil prices gained 40 cents to $61.77 U.S. a barrel.

Gold prices settled $7.80 to $1,724.50 U.S.