Canada’s main stock index touched a fresh record on Monday, breaking above 16,000 points for the first time in the process, as energy shares rallied and cannabis producer Canopy Growth soared.
The S&P/TSX Composite Index gained 49.62 points by noon time to 16,003.13
The Canadian dollar dusted off 0.03 cents to 77.9 cents U.S.
Canopy Growth was up 13.6% to $14.53 after surging as much as 22.9% on news that Corona beer maker Constellation Brands Inc bought a nearly 10% stake in the company.
Canadian Natural Resources gave the index its biggest lift, advancing 1.8% to $44.17, while Crescent Point Energy Corp gained 6.3% to $10.03.
Precision Drilling Corp jumped 10.1% to $3.59, extended Friday’s gains fueled by a narrower-than-expected quarterly loss.
The benchmark index broke the last intraday record set in February on Friday and also closed that day at a record high.
The financials group added strength, as Element Fleet Management Corp jumped 7.9% to $10.2.
The materials group, home to mining and other resource companies, advanced, as Goldcorp Inc rose 1.8% to $17.12.
On the downside, Saputo, which gained on Friday after announcing it was buying Australian diary company Murray Goulburn, gave back some of those advances, falling 3.2% to $45.98 as some analysts cut their ratings on the Canadian dairy producer.
ON BAYSTREET
The TSX Venture Exchange remained afloat 0.71 points to 788.09
Eight of the 12 TSX subgroups were positive midday, with health-care sprinting 3%, energy stocks gushing 1.5%, and materials better 1%
The four laggards were weighed most by real-estate and consumer staples, each 0.4%, while industrial stocks surrendered 0.3%.
ON WALLSTREET
Stocks hit session lows on Monday after a report surfaced saying the House is considering a plan that would gradually lower the U.S. corporate tax rate.
The Dow Jones industrial average eased off from its dizzy heights 77.95 points to break for lunch at 23,356.24,
The S&P 500 dropped 9.37 points from Friday’s high to 2,571.81.
The NASDAQ dropped off from Friday’s all-time by 8.81 points to 6,693.08.
Expectations of tax cuts have increased recently after the House passed a budget plan backed by the Senate. The budget's approval in the House lets the Senate pass with a simple majority.
GM and Advanced Micro Devices were among the worst performers in the S&P 500.
Shares of Advanced Micro Devices fell 8.2% after Morgan Stanley analysts warn demand for cryptocurrency mining chips will be cut in half.
General Motors pulled back 3.1% after Goldman Sachs downgraded the stock to sell, noting it sees a 28% downside over the next 12
months for the stock.
Shares of GM have handily outperformed the broader market, rising 28.1% year to date. AMD shares, meanwhile, have lagged the S&P 500 in 2017, having gained 4.4%. The S&P 500 is up 15.3% in 2017.
A slew of corporate deals were also announced on Monday. Lennar said it was buying CalAtlantic for $9.3 billion, creating the largest U.S. homebuilder. Lennar's stock dropped 3% while CalAtlantic shares gained 22%.
For-profit colleges Strayer and Capella also agreed to merge in a stock-swap deal. Strayer shares gained 9.7% while Capella's stock rose 32.2%.
Wall Street will have its hands full with earnings again this week, with Apple, Starbucks, Qualcomm and Tesla, among others, set to report.
More than half of the S&P 500 has reported as of Friday, with 76% of those companies beating estimates on the bottom line while 67% have topped sales expectations
Prices for the benchmark 10-year Treasury note gained ground, lowering yields to 2.38% from Friday’s 2.42%. Treasury prices and yields move in opposite directions.
Oil prices stayed positive five cents a barrel to $53.95 U.S.
Gold prices gained $5.90 an ounce to $1,277.70 U.S.
