TSX Jumps to Begin Short Week

Dundee, Pembina in Focus


Equities in Canada’s largest centre returned after a long weekend, and opened higher on Tuesday as tentative signs of a rebound in manufacturing activity bolstered optimism around a post-coronavirus recovery.

The S&P/TSX Composite Index sprang back to life 175.84 points, or 1.1%, to 16,345.04.

The Canadian dollar demurred 0.09 cents to 74.56 cents U.S.

Markets in Canada were shuttered for Civic Holiday.

Bausch Health Companies has agreed to pay $45 million, and three of former top executives also agreed to penalties, to settle charges of improper revenue recognition and misleading disclosures in U.S. regulatory filings, the U.S. Securities and Exchange Commission (SEC) said on Friday. Bausch began the day up $1.25, or 5.1%, to $25.74.

ATB Capital cut the target price on Air Canada to $31.00 from $37.00. The Maple Leaf Airline grabbed 37 cents, or 3.7%, to $15.67.

CIBC raised the target price on Dundee Precious Metals to $12.50 from $10.50. Dundee Precious Metals retreated 12 cents, or 1.2%, to $9.98.

Jefferies initiated coverage of Pembina Pipeline the stock with a hold rating and a price target of $34.00. Pembina picked up $1.03, or 3.2%, to $33.58.

On the economic calendar, the Markit Canada Manufacturing Purchasing Managers Index climbed to 52.9 in July, up from 47.8 in June, registering registered above the 50.0 no-change threshold for the first time in five months.

Markit says the latest PMI reading was the highest since January 2019 and signaled a partial rebound in business conditions from the low point seen during April (index at 33.0).

ON BAYSTREET

The TSX Venture Exchange popped another 13.69 points, or 1.9%, to commence the week at 734.93.

Eight of the 12 TSX subgroups were in the green to start the shortened week, with health-care sprouting 3%, energy up 2.5%, and communications ahead 0.2%.

The four laggards were weighed most by gold, down 1.6%, materials, shedding 0.7%, and industrials, backtracking 0.2%.

ON WALLSTREET

Stocks were marginally lower on Tuesday as lawmakers try to make inroads on a new coronavirus stimulus package.

The Dow Jones Industrials inched ahead 5.91 points to begin the session at 26,670.31.

The S&P 500 gained 3.7 points to 3,298.31

The NASDAQ picked up 28.24 points to 10,931.04.

Microsoft gained 5.6% and Apple captured 2.5%, to power the S&P 500 tech sector to an all-time high. Tech has been by far the best-performing sector this year, rising more than 23% in that time period.

Tuesday’s readings come as lawmakers struggle to make inroads on a new coronavirus stimulus package. House Speaker Nancy Pelosi said she, Senate Minority Leader Chuck Schumer and White House chief of staff Mark Meadows held “productive” discussions on Monday, but added there are several issues still outstanding

Prices for the 10-Year Treasury gained, lowering yields to 0.52% from Monday’s 0.54%. Treasury prices and yields move in opposite directions.

Oil prices dipped 11 cents to $40.90 U.S. a barrel.

Gold prices gained $8.50 to $1,994.80 U.S. an ounce.