Canada's TSX stock index advanced on Monday buoyed by gains in industrials and materials stocks tracking a rebound in global equities from a selloff in the previous week, while Uni-Select hit an all-time intraday high on a buyout deal.
The TSX remained buoyant 50.15 points, off its highs of the morning, to pause for lunch at 20,269.34.
The Canadian dollar eked up 0.06 cents to 73.59 cents U.S.
Uni-Select surged $6.47, or 16.1%, to $46.75, after LKQ Corp said it would buy the auto parts distributor for about $2.8 billion.
Toronto-Dominion Bank fell 61 cents to $90.51, after the lender said it would pay $1.21 billion to settle a litigation accusing the bank of contributing to imprisoned Ponzi schemer Allen Stanford's fraud.
ON BAYSTREET
The TSX Venture Exchange stayed higher 4.63 points to 621.49.
The 12 TSX subgroups were evenly divided, with consumer discretionary stocks ahead 0.9%, materials up 0.7%, and energy better by 0.5%.
The half-dozen laggards were weighed most by health-care, declining 1.5%, consumer staples, falling 0.8%, and information technology off 0.3%.
ON WALLSTREET
Stocks rose Monday as traders tried to recover some ground following the worst week of the year on Wall Street. Investors also looked ahead to another big week in retail earnings.
The Dow Jones Industrials fell from its highest points of the morning, but still gained 73.39 points to kick off a new week at 32,890.31.
The S&P 500 regained 18.23 points to 3,988.27.
The S&P also got a boost from railroad operator Union Pacific, which climbed 10% after the company announced CEO Lance Fritz will step down this year.
The NASDAQ Composite restocked 95.11 points to 11,490.06.
The early 2023 rally seems to be fading as traders worry that rates could stay higher for longer. The Fed latest meeting minutes showed officials are determined to keep raising rates until inflation comes down.
Stocks sank Friday and Treasury yields jumped following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
On the economic data front, durable goods orders fell in January as consumers pulled back spending on big-ticket items.
In earnings, just 6% of the S&P 500 will report but investors are looking for insight into the consumer with several major retailers, restaurants, some travel and entertainment names as well as food companies set to report. Target, Costco, Lowe’s and Macy’s are some of the big names set to report earnings this week.
Prices for the 10-year Treasury surged, lowering yields to 3.92% from Friday’s 3.95%. Treasury prices and yields move in opposite directions.
Oil prices settled 51 cents to $75.81 U.S. a barrel.
Gold prices leaped $5.40 to $1,822.50 U.S. an ounce.
