Canada’s main stock index opened higher on Monday, boosted by hopes of a trade deal between the United States and China, but a slide in shares of gold miners kept gains in check.
The TSX Composite Index gained 26 points to begin the week at 16,430.49.
The Canadian dollar eked up 0.07 cents to 76.81 cents U.S.
Restaurant Brands International Inc missed estimates for quarterly revenue on Monday as its biggest chain Tim Hortons reported a surprise fall in comparable sales, overshadowing strong performances at Burger King and Popeyes.
Restaurant Brands shares lost $2.84, to 3.2%, to $86.45.
Canaccord Genuity started coverage on Docebo Inc. with a buy rating. Docebo shares rocketed 84 cents, or 6.2%, to $14.50.
RBC cut the target price on Medical Facilities Corp. to $10.00 from $11.00. Medical shares gained two cents to $7.90.
Credit Suisse cuts the rating on Toronto-Dominion Bank to neutral from outperform. TD gained 10 cents to $75.26.
ON BAYSTREET
The TSX Venture Exchange docked $1.06 points to 545.43
Seven of the 12 Toronto subgroups were positive, with health-care better by 1.3%, energy surging 0.9%, and communications improving 0.5%.
The five laggards were weighed most by gold, falling back 2.2%, materials, down 1.2%, and consumer discretionaries, off 0.4%.
ON WALLSTREET
The S&P 500 hit a record high on Monday, breaking above an all-time high set over the summer as investors cheered strong earnings and progress on U.S.-China trade.
The Dow Jones Industrial Average hiked 173.33 points to begin a new week at 27,131.39
The broader S&P 500 gained 18.86 points to 3,041.41, above 3,027.98, the record set on July 26
After hitting that new high in late July, fears of an economic recession led to a sharp August selloff. That month, the S&P 500 dropped 1.8%. The index struggled through September but has rebounded strongly in October. It is now up more than 6% from that August low.
The NASDAQ Composite Index hiked 66.5 to 8,309.62
President Donald Trump called in a tweet the move to record highs a "big win for jobs, 401-K’s, and, frankly, EVERYONE."
Stocks have gotten a boost recently from better-than-expected earnings. Of the 206 S&P 500 companies that have reported, 78% have topped analyst expectations.
Walgreens Boots Alliance, AT&T and Spotify are among the companies that reported stronger-than-forecast profits on Monday. Walgreens and AT&T shares rose 1.5% and 3.3%, respectively. Spotify gained 10.7%.
Apple, UnitedHealth and J.P. Morgan Chase are among the stocks helping the S&P 500's bid to fresh record highs. Apple shares are up more than 10% in October amid optimism around iPhone 11 sales. UnitedHealth has rallied 12.7% for the month through Friday’s close, while J.P. Morgan Chase has gained 7.1% amid expectations that interest rates have bottomed.
Tech and financials are the best-performing sectors month to date. They are up 3% and 2.2%, respectively, entering Monday’s session.
In corporate news, Microsoft climbed 3.2% after snagging a $10-billion defense contract.
Monday’s moves come ahead of a highly anticipated Federal Reserve meeting later this week. The Fed is largely expected to cut rates by 25 basis points for the third time this year.
Prices for the benchmark 10-year U.S. Treasury fell sharply, raising yields to 1.85% from Friday’s 1.8%. Treasury prices and yields move in opposite directions.
Oil prices slipped 10 cents to $56.56 U.S. a barrel.
Gold prices plummeted $10.60 to $1,494.700 U.S. an ounce.
