Stocks in Canada closed higher Monday amid hopes for a COVID-19 vaccine while tech stocks led the industries with a 3.07 percent gain.
The S&P/TSX Composite Index gained 60.18 points at 16,183.66.
Oxford University, along with AztraZeneca, said their phase 1/phase 2 study of a coronavirus vaccine showed a promising immune response in the more than 1,000 patients involved in the trials.
On the corporate front, Aurora Cannabis Inc. is reorganizing its European operations and cutting some jobs. The Edmonton-based cannabis company says that the layoffs will amount to a one-quarter workforce reduction in select countries and in a regional office.
CounterPath Corp. (PATH) on Monday reported fiscal fourth-quarter net income of $900,000, after reporting a loss in the same period a year earlier. On a per-share basis, the Vancouver, British Columbia-based company said it had net income of 13 cents. Earnings, adjusted for non-recurring gains, came to 11 cents per share. The business telecommunications company posted revenue of $4 million in the period.
Walmart Canada plans to invest $3.5 billion over the next five years to improve service in stores and on the web, renovate 150 stores and build two new distribution centres. The retail giant says the investment will create hundreds of construction jobs in Canada and forge partnerships with Canadian high-tech companies.
Canadian home prices rose in June, led by the Halifax, Winnipeg and Hamilton markets, though it was the lowest June advance in 17 years, data showed on Monday. The Teranet-National Bank Composite House Price Index, which tracks data collected from public land registries to measure changes for repeat sales of single-family homes, showed prices were up 0.7% in June from May.
The Canadian dollar eked higher 0.023 cents at 73.88 cents U.S.
The September crude contract was down 16 cents at US$40.59 per barrel.
The August gold contract was up US$9.16 at US$1,818 an ounce.
ON BAYSTREET
The TSX Venture Exchange climbed 10.21 points, or 1.05% to 685.16.
Three of the 12 TSX subgroups were stronger Monday, with tech stocks higher by 3.07%, gold up 2.44% and materials ahead 1.98%.
On the downside, telecom was off 1.76%, Energy issues shed 1.75% and Consumer Discretionary trailing 1.05%.
Advancers led decliners 954 to 705 with 230 issues unchanged on the TSX.
ON WALLSTREET
Stocks in the U.S rose on Monday with Amazon shares leading the charge and sending the Nasdaq Composite to a fresh closing record. Traders also weighed the prospects of a potential coronavirus vaccine and more U.S. fiscal stimulus.
The S&P 500 advanced 0.8%, or 27.11 points, to 3,251.84, turning positive for 2020 with a 0.6% gain on the year. The Nasdaq Composite outperformed, rising 2.5%, or 263.90 points, to 10,767.09. The Dow Jones Industrial Average traded 8.92 points higher to 26,680.87
Earnings from corporations including Microsoft, Tesla and Intel, are among a parade of entities that could offer greater insight about the economic outlook as American corporations contend with the worst pandemic in more than 100 years.
Traders also turned their eyes to Washington as lawmakers begin negotiations on new stimulus measures.
Earlier this year, President Donald Trump signed a stimulus package worth roughly $2 trillion which expanded unemployment benefits for those laid off during the pandemic. Among these expanded benefits, a $600-a-week check was included. However, these extra payments are set to expire later this month.
Amazon advanced 7.9%. Shares of the e-commerce giant got a boost after a Goldman Sachs analyst hiked his price target on the stock to $3,800 per share.
Shares of Tesla Inc. rallied 9.47% to $1,643.00 Monday.
Chevron (CVX) said Monday it reached an agreement to buy Noble Energy (NBL) for $5 billion in stock in what marks the biggest oil-patch tie-up since the coronavirus pandemic began four months ago.
The 10-year Treasury note yield was down 0.9 basis point to 0.619%, after falling as low as 0.602%.
