Markets in Toronto confounded predictions and showed healthy gains Monday morning, even as investors remained cautious about the potential timing of a scaling down of U.S. Federal Reserve stimulus, and digested new developments from China
The S&P/TSX composite index progressed 62.99 points to begin the day and the week at 13,343.71
The Canadian dollar fell 0.18 to 93.75 cents U.S.
China's exports handily beat forecasts in November, adding to recent evidence of a stabilization in the world's second-largest economy as its leaders embark on an ambitious restructuring plan.
Raymond James raised the price target on ADF Group to $4 from $2.75 on the company's better-than-expected third-quarter results. ADF shares spiked 20 cents to $3.00
Barclays cut the target price on Empire Co, the grocery store chain with Sobey’s under its umbrella, to $84 from $87 to reflect a more cautious earnings forecast. Empire shares improved 76 cents, or 1%, to $74.69.
Raymond James raised the price target on MEG Energy to $42 from $41, says the company is a compelling near and long-term growth story. MEG shares faded 40 cents to $30.18.
On the economic front, Canada Mortgage and Housing Corporation reported this morning that housing starts rose by 192,000 in November, in contrast with projections of 195,000 from experts.
ON BAYSTREET
The TSX Venture Exchange stumbled 9.03 points to 907.62
All 14 TSX subgroups were in the green in the first hour of trading, led by gold, up 2.1%, materials, up 1%, and financials, gaining 0.9%.
ON WALLSTREET
Stocks continued to move higher Monday, as the market continued to cheer Friday's better-than-expected jobs report as well as some notable mergers.
The Dow Jones Industrials added 14 points to 16,034.20
The S&P 500 index hiked 5.27 points to 1,810.36. The NASDAQ surged 7.03 points to 4,069.55
On Monday, investors welcomed the debut of the largest air carrier in the world, as American Airlines Group, the travel giant born from the American Airlines and US Airways merger, began trading on the NASDAQ under the new symbol AAL.
Shares of American Airlines group bounced 7% out of the gate.
The deal, which cleared a series of legal hurdles, including an antitrust lawsuit this fall from the Justice Department and a last-minute challenge from a consumer group, was inked Monday morning before the opening bell.
Sysco soared nearly 25% after the company announced it plans to buy rival US Foods for $3.5 billion U.S., bringing together two of the largest food distributors in the country.
On the earnings front, automotive tire retailer Pep Boys is among the small number of firms scheduled to report quarterly earnings after the bell.
Prices for 10-year U.S. Treasuries gained ground, lowering yields to 2.84% from Friday’s 2.88%. Treasury prices and yields move in opposite directions.
Oil prices moved back 26 cents to $97.39 U.S. a barrel.
Gold prices picked up $6.80 to $1,235.80 U.S. an ounce.
