Canada's main stock index opened higher on Monday, after an eight-day losing streak, as Air Canada's earnings boosted the industrial index, while investor sentiment was optimistic ahead of a slew of economic data through the week.
The TSX Composite recovered from last week’s carnage in a big way, jumping 187.6 points, or 1%, to start the day and the week at 18.925.
The Canadian dollar subtracted 0.29 cents at 72.08 cents U.S.
Materials stocks are likely to get a boost as most non-ferrous metal prices rose with stimulus measures from top consumer China boosting sentiment, with low inventories and solid demand further supporting copper prices.
Energy shares, however, may witness a decline after oil prices slipped more than 1% as concerns eased about the Israel-Hamas war affecting supply from the region.
Air Canada reported a quarterly profit compared with a year-ago loss as the carrier benefited from strong demand for international travel. Shares in “The Maple Leaf Airline” squeezed up two cents to $16.74.
TC Energy is exploring a multi-billion-dollar asset sale plan to lower its debt and fund new investments, Bloomberg News reported on Friday. TC shares gained 37 cents to $47.32.
ON BAYSTREET
The TSX Venture Exchange gained 1.95 points to 522.46.
All but two of the 12 TSX subgroups were in “plus” territory, with consumer staples, up 1.9%, while financials and information technology issues each perked 1.5%.
Only materials shrank, 1.4% at that, while gold dulled in price 1%.
ON WALLSTREET
U.S. stocks rose Monday as traders braced for a big week filled with a Federal Reserve rate decision, jobs report and Apple’s earnings report.
The Dow Jones Industrials barreled 258.55 points to begin Monday at 32,676.14.
The S&P 500 index recovered 23.36 points to 4,140.73.
The NASDAQ jumped 82.71 points to 12,725.72.
The rally was broad-based with all 11 S&P 500 sectors trading higher. Communications services, consumer discretionary and information technology stocks outperformed. Mega-cap tech stocks rose, with shares of Amazon and Meta Platforms up by more than 2%, each.
SoFi Technologies shares popped more than 2% after the financial services company posted a strong third-quarter revenue beat and raised its full-year outlook.
Apple will report earnings Thursday after the bell. The S&P 500's largest member is in a correction itself, down 15% from its 52-week high.
The moves come after the S&P 500 fell into correction territory last week. The broader index shed 2.5% for the week to put it down by more than 10% from its 2023 closing high. It’s off 3.2% for October, on pace for its third-straight negative month which would be its first such streak since 2020 as the pandemic struck.
The Federal Reserve decision looms Wednesday, when the central bank is widely expected to hold its benchmark interest rate at the same level. With surging interest rates as the main culprit of this stock market correction, investors will be hoping the Fed signals it could be done raising rates. Traders expect the Fed to be done raising rates at least for 2023.
Prices for the 10-year Treasury faded, raising yields to 4.91% from Friday’s 4.84%. Treasury prices and yields move in opposite directions.
Oil prices erased $1.88 to $83.66 U.S. a barrel.
Gold prices leaped $12.10 to $2,017.30.
