Stocks Re-Discover Footing

Lundin, Aphria in Focus

Markets in Toronto shook off the negative vibes of the morning Monday, and rediscovered positive territory, as resource stocks re-asserted themselves.

The S&P/TSX Composite Index regained 39.86 points, to approach noon hour at 16,520.39

The Canadian dollar was off 0.24 cents at 74.77 cents U.S.

Markets will be closed Friday for Good Friday

Lundin Mining jumped 52 cents, or 7.5%, to $7.35, after it said it would buy gold-copper mine of Yamana Gold Inc in Brazil for more than $1 billion as it looks to beef up its base metals portfolio. Yamana Gold fell 13 cents, or 3.8%, to $3.29.

Aphria Inc fell $1.60, or 11.9%,, the most on the TSX, to $11.81, after reporting quarterly revenue that missed expectations.

On the economic calendar, the Canadian Real Estate Association reported home sales via Canadian MLS Systems edged up 0.9% in March following a sharp drop in February, leaving activity near some of the lowest levels recorded in the last six years.

ON BAYSTREET

The TSX Venture Exchange docked 5.22 points to 620.42

All but three of the 12 Toronto subgroups pointed north at noon hour, with materials stronger by 0.8%, communications 0.7% to the good, and gold shinier by 0.6%.

The three laggards were health-care, stumbling 3.6%, real-estate, down 0.3%, and consumer staples, off 0.1%.

ON WALLSTREET

Stocks traded along lower on Monday as investors digested mixed quarterly numbers from big banks like Goldman Sachs and Citigroup.

The Dow Jones Industrial Average decreased 88.14 points to 26,324.16

The S&P 500 settled 8.36 points to 2,899.05.

The NASDAQ Composite fell 36.09 points to 7,948.07

Goldman Sachs reported better-than-expected earnings as the bank kept compensation in check, but its revenue came in below analyst expectations as sales from its institutional clients division dropped by 18%. Shares of Goldman dropped 2.5%.

Meanwhile, Citigroup earnings topped expectations as the company repurchased more than $4 billion in stock. However, a 20% in its equity trading division contributed to a 2% fall in overall revenue, with disappointed analysts. Citigroup shares pulled back 1%.

Goldman Sachs and Citigroup released their earnings after J.P. Morgan Chase and Wells Fargo posted their results on Friday. J.P. Morgan Chase’s numbers lifted the broad market on Friday, with the Dow gaining more than 260 points. Wells, meanwhile, fell on a profit warning from its chief financial officer.

Despite the varied results from the big banks, the overall earnings season is off to a solid start. Of the companies that have reported, 85% have topped analyst earnings expectations

Other companies that reported quarterly earnings on Monday include Charles Schwab and M&T Bank. Schwab shares rose nearly 2%, but M&T Bank dipped 0.2%

Wall Street also pored through the latest news on the trade front. Treasury Secretary Steven Mnuchin said Sunday the U.S. is willing to take a penalty if it does not comply with a China trade deal once the two countries reach one. However, Mnuchin said Monday the two sides had a lot of work left ahead of them.

Prices for the benchmark 10-year U.S. Treasury were slightly higher, lowering yields to 2.55% from Friday’s 2.56%. Treasury prices and yields move in opposite directions

Oil prices sank 75 cents to $63.14 U.S. a barrel.

Gold prices plunged $2.90 to $1,292.30 U.S. an ounce.