Canada's main stock index improved on Monday, as technology companies tracked gains in their Wall Street peers, while investors awaited the Bank of Canada's interest rate decision later in the week.
The TSX sprang up 100.05 points to move into Monday’s lunch hour at 20,603.26.
The Canadian dollar sank 0.02 cents at 74.77 cents U.S.
Technology stocks gained, propped up by a jump of $3.71, or 6.9%, to $57.87, in Shopify after Deutsche Bank raised its rating on stock to "buy" from "hold".
As well, the Wall Street Journal reported Ritchie Bros Auctioneers will increase cash payout for IAA Inc. shareholders to $12.80 per share from $10 as part of the deal to buy the U.S.-based company. Ritchie shares jumped $2.04, or 2.5%, to $82.42.
On the economic calendar, Statistics Canada’s new housing price index for December was unchanged in December following three months of declines. New house prices were unchanged in 19 of the 27 census metropolitan areas surveyed, down in six and up in the remaining two.
ON BAYSTREET
The TSX Venture Exchange forged ahead 2.01 points to 625.82.
Eight of the 12 subgroups were in the green with information technology grabbing 2.2%, health-care soaring 2%, and real-estate picking up 1%.
The four laggards were weighed most by gold dulling in price 1.1%, while materials fell 0.6%, and communications eased 0.5%.
ON WALLSTREET
Stocks rose Monday as investors contemplated a potential slowdown in rate hikes from the Federal Reserve and braced for a busy week of earnings.
The Dow Jones Industrials rumbled 318.4 points, or 1% to 33,693.88.
The S&P 500 gained 49.43 points, or 1.2%, to 4,022.03.
The NASDAQ Composite leaped 200.83 points, or 1.8%, to 11,341.26.
Semiconductor stocks and shares of Tesla and Apple gained on hopes that a reopening in China would boost their businesses. Both big tech names recently grappled with temporary shutdowns and blows to production as the country dealt with surging COVID-19 cases.
Shares of water technology company Xylem shed more than 9% amid news that it’s buying peer Evoqua Water Technologies in a deal valued at roughly $7.5 billion.
Investors weighed the possibility that the Fed is preparing to slow the pace of its inflation-fighting rate hikes. Economic data released last week showed a decline in wholesale prices and retail sales, along with commentary from central bank officials, seemed to signal a slowdown.
Remarks from Fed Governor Christopher Waller Friday seeming to favor a quarter percentage point rate increase at the next meeting lifted investors’ hopes for a downshift. A Wall Street Journal report Sunday raised the possibility of a spring pause to rate increases — a sign that the Fed could be nearing the end of its rate hiking campaign.
Markets have priced in a 99.7% chance of a 25-basis point hike, according to CME Group data, which would bring the interest rate to a targeted range of 4.5%-4.75%.
Earnings reports could keep the market on edge, with about 40% of the Dow scheduled to release their latest financial results and offer more insight into how companies are weathering inflation and interest rates. Some big names on deck include Microsoft, IBM, Tesla, Visa and Mastercard.
Prices for the 10-year Treasury hesitated a bit, boosting yields to 3.52% from Friday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil prices gained 64 cents to $82.28 U.S. a barrel.
Gold prices doffed $3.10 to $1,925.10 U.S. an ounce.
Dow Barrels Ahead 300+ on Rate Anticipation
