Stock Gain at Outset

Emera, ONEX in Focus


Canada's main stock index opened higher on Monday, as resource-linked shares gained, although downbeat data from China fueled fears of a recession and kept sentiment in check.

The S&P/TSX kept the momentum going from last week, gaining 78.8 points, at the outset Monday to 20,178,61.

The Canadian dollar regained 0.20 cents at 77.50 cents U.S.

National Bank of Canada upped the rating on Canadian Western Bank to outperform from sector perform. Western Bank shares advanced 46 cents, or 1.4%, to $32.44.

National Bank of Canada raised the target price on Emera Inc. to $60.00 from $59.00. Emera shares gained 29 cents to $67.95.

RBC raised the target price on ONEX Corp. to $110.00 from $108.00. ONEX backtracked $2.14, or 2.9%, to $71.88.

On the economic slate, Statistics Canada reported manufacturing sales rose 2.5% in March, mainly on higher sales of petroleum and coal product, primary metals, and paper products.

Wholesale sales rose 0.3%, also in March, to $79.8 billion, with the largest increases coming in the building material and supplies, and motor vehicle and motor vehicle accessories and parts subsectors.

Foreign Minister Melanie Joly said on Saturday that there should be consensus at NATO for Sweden and Finland to join the alliance, but that their accession should be quick.

ON BAYSTREET

The TSX Venture Exchange poked 3.87 points, to 700.52.

Eight of the 12 TSX subgroups were in the green, with energy rumbling 2.5%, materials up 1.1%, and health-care ahead 0.8%.

The four laggards were consumer discretionary stocks, down 0.7%, while information technology slumped 0.5%, and consumer staples slouched 0.3%.

ON WALLSTREET

Stocks fell Monday as the market struggled to rebound from a relentless selloff that’s punished tech stocks and pushed the S&P 500 to the brink of a bear market.

The Dow Jones Industrials resumed their decline, 162.66 points, to open Monday at 32,034.

The S&P 500 settled 21.97 points to 4,001.92.

The NASDAQ Composite dropped 90.71 points to 11,714.30.

Major averages still posted steep losses for the week and are undergoing an intense selloff as the Federal Reserve attempts to tamp down inflation with aggressive rate hikes.

The Dow’s seven-week losing streak is its worst since 2001. The S&P 500 just posted its first six-week losing streak since June 2011.

Retail earnings season kicks off this week with several big-box retailers set to report results for the first quarter, including Walmart, Target and Home Depot. Elsewhere, Deere is also on deck, along with a handful of technology companies.

Investors will also have their eye on retail sales data this week, which could give them insight into how retailers are managing inflation, which remains near 40-year highs.

Spirit Airlines shares surged 9% in after JetBlue announced a tender offer to acquire the airline for $30 a share.

Carvana’s stock price jumped 7% after the used car company issued strong core earnings expectations for 2023, and outlined a plan to cut costs.

Treasury prices picked up steam, lowering yields to 2.88% from Friday’s 2.94%. Treasury prices and yields move in opposite directions.

Oil prices gained 12 cents at $110.81 U.S. a barrel.

Gold prices lost 90 cents to $1,807.30 U.S. an ounce.