Stocks in Toronto edged higher on Monday morning, led by Veresen Inc after Pembina Pipeline Corp said it would buy the company, while alternative lender Home Capital Group shares slumped as the company draws down on a credit line.
The S&P/TSX Composite Index added 12.27 points to begin the week at 15,598.40
The Canadian dollar doffed 0.03 cents at 73.26 cents U.S.
Pembina Pipeline Corp said it would buy Veresen Inc in a deal valued at $9.7 billion, including debt, adding natural gas pipelines and processing infrastructure to its oil and natural gas liquids-heavy portfolio.
Pembina shares slid 92 cents, or 2.1%, to $42.58, while Veresen shares raced ahead $2.92, or 19.2%, to $18.15.
Home Capital shares plummeted $1.89, or 23.5%, to $6.15.
Shaw Communications is reportedly looking for a buyer for ViaWest, the U.S. data centre company it bought three years ago, as the Canadian cable company continues to shed assets it considers non-core.
Shaw shares improved 16 cents to $29.10
RBC started coverage on Osisko Mining with outperform rating. Shares in the miner took on seven cents, or 1.4%, to $5.00.
On the economic front, seasonally-adjusted Markit Manufacturing Purchasing Managers Index figures for April moved upward to 55.9 from the 55.5 figure for March, the 14th straight reading above 50.
Moreover, the latest reading signaled the strongest improvement in business conditions for exactly six years. This mainly reflected faster rises in new orders and employment numbers in April.
ON BAYSTREET
The TSX Venture Exchange gained 1.21 points to 807.98
Eight of the 12 TSX subgroups began the day positive, as health-care went 0.7% higher, while consumer discretionary and information technology each gained 0.4%.
The four laggards were weighed by gold, down 0.7%, while energy staggered 0.4%, and consumer staples docked 0.2%.
ON WALLSTREET
U.S. equities opened higher on Monday after the government avoided a shutdown while Wall Street braced for a week filled with key economic data and earnings.
The Dow Jones Industrial Average dipped 9.91 points to open the day, week and month at 20.930.60, though Apple gained.
The S&P 500 recovered 2.54 points to 2,386.74, with financials and information technology leading advancers.
The NASDAQ Composite recouped 22.25 points to 6,069.85
Earnings season also continues this week, with Apple, Facebook, Tesla and BP all reporting.
This earnings season has been strong thus far, with more than 75% of companies beating profit estimates and about 70% topping sales forecasts as of Friday morning
On Monday, the U.S. Commerce Department said consumer spending remained flat in March, while personal income rose less than expected.
The Institute for Supply Management manufacturing index April print and construction spending numbers for March were due Monday.
Lawmakers reportedly reached a deal Sunday to keep the government funded for the next five months
The full House and Senate must still approve the bipartisan pact, which would be the first major legislation to clear Congress since Donald Trump became president on Jan. 20.
Prompt passage of the legislation is expected this week.
Prices for the benchmark 10-year Treasury note were lower, raising yields to 2.29% from Friday’s 2.28%. Treasury prices and yields move in opposite directions.
Oil prices slid 38 cents at $48.95 U.S. a barrel
Gold prices lost $3.30 at $1,265.00 U.S. an ounce.
