Stocks in Canada’s largest market stayed positive wire to wire on Monday, as shares of drug developer Trillium Therapeutics nearly tripled on its acquisition by U.S. pharma major Pfizer.
The TSX Composite Index jumped 138.24 points to close Monday at 20,477.26
The Canadian dollar added 1.06 cents to 79.02 cents U.S.
Trillium ballooned $14.48, or 185.4%, to $22.29, while cannabis company Organigram Holdings took on 16 cents, or 5.3%, to $3.20.
Crescent Point Energy was the biggest gainer on the TSX, after Trillium, jumping 27 cents, or 6.9%, to $4.14. Elsewhere in energy, Enerplus grabbed 47 cents, or 7.4%, to $6.82.
In materials, Capstone Mining thundered ahead 38 cents, or 7.9%, to $5.19, while First Quantum Mining leaped $1.55, or 6.6%, to $25.01.
Among consumer staples that fell just short of breakeven, Alimentation Couche-Tard sank 36 cents to $51.79, while Metro dipped 42 cents to $63.57.
In utilities, Canadian Utilities handed back 40 cents, or 1.1%, to $35.92, while ATCO fell 39 cents to $42.38.
In communications, TELUS dropped 15 cents to $28.89, while BCE surrendered 22 cents to $64.89.
ON BAYSTREET
The TSX Venture Exchange leaped 12.79 points, or 1.5%, to 877.30.
The 12 TSX subgroups were evenly divided, with health-care spiking 6.3%, energy rumbling 3.5% higher and materials 2.8% stronger.
The half-dozen laggards were weighed most by consumer staples, down 0.3%, while utilities and communications each pointed downward 0.2%.
ON WALLSTREET
Stocks finished higher Monday following a volatile week on Wall Street, led by reopening stocks as the Food and Drug Administration approved its first COVID-19 vaccine.
The Dow Jones Industrials jumped 215.63 points to 35,335.71.
The S&P 500 zoomed 37.86 points to 4,479.53
The NASDAQ Composite popped 227.99 points, or 1.6%, to 14,942.65, a new high.
Shares of vaccine makers traded higher Monday after the FDA granted full approval for the two-dose Pfizer-BioNTech vaccine for Covid-19. Pfizer shares rose 2.5%. Its partner BioNTech’s stock jumped 9.6% and Moderna climbed 7.6% higher.
Travel and leisure stocks reacted positively to the news, with Delta gaining 2% and American Airlines moving 3% higher, Carnival and Norwegian Cruise Lines gained about 4%.
The immediate impact of the FDA approval of the Pfizer vaccine on efforts to combat the virus could be muted until the U.S. population reaches herd immunity, which “will be a while,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.
Energy stocks are leading the S&P 500 as oil prices jumped Monday and snapped its longest losing streak since 2019. Diamondback Energy and Devon Energy gained about 6% while Occidental Petroleum rose nearly 7%.
Traders are eagerly awaiting the Jackson Hole symposium for clues on the Fed’s timeline for dialing back its $120 billion a month bond-buying program. The event takes place virtually on Thursday and Friday.
The Fed previously was going to conduct the event in a mixed virtual and live presentation, but decided Friday to go all virtual in light of the rising virus risk.
Chairman Jerome Powell’s speech will be titled “The Economic Outlook,” which “may suggest the speech could have a more near-term focus,” Nomura economist Aichi Amemiya said in a note.
Prices for 10-Year Treasurys were unchanged, keeping yields at Friday’s 1.26%.
Oil prices recovered $3.26 to $65.40 U.S. a barrel.
Gold prices leaped $23.10 to $1,807.10 U.S. an ounce.
