Stocks in Canada’s largest market headed for the sky Monday, as strength in the gold sector followed the purchase of blocks of shares in Barrick Gold by Warren Buffett’s Berkshire Hathaway.
The TSX climbed 141.51 points to close Monday at 16,656.12.
The Canadian dollar gained 0.33 cents to 75.78 cents U.S.
Barrick for its part, climbed $3.80, or 10.6%, to $39.59. Rival Equinox Gold vaulted $1.32, or 8.1%, to $17.49.
Among other resource issues, Canfor Corp. took on 98 cents, or 6%, to $17.39, while Silvercorp Metals acquired 79 cents, or 6.6%, to $12.81.
In the industrial sector, Ballard Power Systems charged ahead $1.53, or 8%, to $20.57, while Richelieu Hardware gathered 92 cents, or 2.7%, to $35.08.
Financial stocks did not fare so well, however, with Equitable Group docking $1.77, or 2.2%, to $80.13, Genworth MIC doffing 71 cents, or 1.9%, to $36.80.
In consumer staples, Primo Water lost 14 cents to $19.44, while Metro shed 49 cents to $59.84.
Among energy shares, Pason Systems dipped 16 cents, or 2.5%, to $6.29, while Enerplus Corporation fell six cents, or 1.4%, to $4.12.
On the macroeconomic front, Statistics Canada reports foreign investors reduced their holdings of Canadian securities by $13.5 billion in June as they divested in both debt and equity securities.
Meanwhile, Canadian investment in foreign securities reached $10.6 billion, led by acquisitions of U.S. equities.
ON BAYSTREET
The TSX Venture Exchange climbed 13.22 points, or 1.8%, to 750.87.
Seven of the 12 TSX subgroups had faded into negative territory by the close, with financials down 0.3%, while consumer staples and energy had given back 0.2% each.
The five gainers were led by gold, marching ahead 5.7%, materials up 4.8%, and industrials, 0.5% to the good.
ON WALLSTREET
The S&P 500 rose slightly on Monday to start the week, but fell short of a record closing high once again amid declining trading volumes and lingering concerns over a U.S. coronavirus stimulus bill.
The Dow Jones Industrials backtracked 63.67 points to end the session at 27,867.35.
The S&P 500 gained 9.14 points to 3,381.99. The S&P 500 materials sector gained 0.4% as miners Newmont and Freeport-McMoRan each gained more than 2%. Those gains came after Barrick Gold shot up 10% following Berkshire Hathaway disclosing a stake in the company.
Despite Monday’s gains, the S&P 500 failed to close above its Feb. 19 record closing high of 3,386.15. The index briefly traded above that level earlier in the day. It also flirted with that level for most of last week.
The NASDAQ shot higher 110.42 points, or 1%, to 11,129.72, hitting an all-time high.
Shares of Alphabet and Microsoft both rose at least 0.7% to lead the NASDAQ higher. Amazon, meanwhile, gained 1.1% after media reports the e-commerce giant wants a minority stake in cloud company Rackspace Technology. Shares of Rackspace advanced more than 10% on the news.
Both Democrats and Republicans have indicated they are at a stalemate over a new stimulus package. Democrats have proposed to send more than $900 billion to states and municipalities in one bill. A counteroffer from the GOP did not include any additional aid for states and local governments.
On Friday, President Donald Trump tweeted: "I am ready to send more money to States and Local governments to save jobs for Police, Fire Fighters, First Responders, and Teachers. DEMOCRATS ARE HOLDING THIS UP!"
House Speaker Nancy Pelosi said on Sunday she would call the House back into session to address funding for the U.S. Postal Service, a key issue in the stimulus negotiations.
On the U.S.-China front, Trump issued an executive order on Friday forcing ByteDance to sell or spin off its U.S. TikTok business in 90 days. Trump cited "credible evidence" that ByteDance "might take action that threatens to impair the national security of the United States."
Prices for the 10-Year Treasury gained slightly, lowering yields to 0.69% from Friday’s 0.71%. Treasury prices and yields move in opposite directions
Oil prices improved 80 cents at $42.81 U.S. a barrel.
Gold prices moved sharply higher, $42.90, to $1,992.70 U.S. an ounce.
