Equities in Canada’s busiest market remained in positive territory on Monday, as hopes grew of a trade deal between the United States and China, but a slide in gold miners capped the upside.
The TSX Composite Index gained 18.32 points to move into noon hour at 16,422.81
The Canadian dollar eked up 0.03 cents to 76.57 cents U.S.
In company news, Restaurant Brands International missed estimates for quarterly revenue as its biggest chain Tim Hortons reported a surprise fall in comparable sales, sending the company’s shares down 3%.
The largest percentage gainers on the TSX were Celestica, which jumped 52 cents, or 6.2%, to $8.87, followed by a rise of $2.44, or 4.7%, in Canada Goose Holdings, to $54.28.
Novagold fell the most on the TSX, sliding 26 cents, or 2.9%, to $8.60.
ON BAYSTREET
The TSX Venture Exchange docked 3.98 points to 542.51
Seven of the 12 Toronto subgroups stayed green, with communications, up 0.9%, information technology, up 0.5%, and consumer staples, up 0.4%
The four laggards were weighed by gold, down 2%, materials, off 1,2%, and consumer discretionary, falling 0.4%
Health-care stocks were unchanged by noon.
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 gained 96.97 points to break for lunch at 27,055.03
The broader S&P 500 gained 15.54 points to 3,038.09, above 3,027.98, the record set on July 26
After hitting that new high, 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 75.39 to 8,318.53
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.
