Indexes off on Right Foot

Baystreet Stock Market Update |

First Majestic, SNC in Focus



Canada's main stock index rose on Monday, as energy stocks gained on the back of higher oil prices.

The S&P/TSX Composite Index acquired 36.07 points to start Monday at 16,522.01.

The Canadian dollar retreated 0.27 cents to 76.39 cents U.S.

The top percentage gainers on the TSX were First Majestic Silver, which jumped 47 cents, or 3.6%, to $13.41, followed by Home Capital Group, which rose 40 cents, or 1.8%, to $22.43.

SNC Lavalin fell $1.82, or 7.1%, the most on the TSX, to $23.69, after the construction and engineering firm withdrew its forecast for 2019, on significantly lower results as it considers options for its resources unit and exits fixed-price contracts.

Elsewhere, Australian cobalt developer Jervois Mining says it will take over eCobalt Solutions after shareholders of the Canadian company voted in favour of the deal. eCobalt shares rose 5.5 cents, or 25.6%, to 27 cents.

British hedge fund Odey Asset Management said it intends to vote, on behalf of its clients, in favour of Barrick Gold's final offer to buy out its fellow shareholders in Acacia Mining. Barrick shares gained 17 cents to $22.67.

RBC raised the price target on Equitable Group to $96.00 from $84.00. Equitable shares picked up $2.32, or 3%, to $79.92.

RBC raised the price target on Intact Financial to $135.00 from $122.00. Intact shares dived $1.56, or 1.3%, to $123.15.

On the economic front, Statistics Canada reported wholesale sales were down 1.8% in May to $63.8 billion, following five consecutive monthly increases.

The agency also says lower sales were reported in six sub-sectors, accounting for 86% of total wholesale sales.

ON BAYSTREET

The TSX Venture Exchange added 3.58 points to open the week at 595.54

Eight of the 12 Toronto subgroups started the day in positive country, as information technology firms rocketed 1.1%, energy was better by 0.8%, and consumer discretionaries gathered 0.7%

The four laggards were weighed most by health-care, shedding 0.4%, consumer staples, down 0.2%, and real-estate, off 0.1%.

ON WALLSTREET

Stocks opened slightly higher on Monday ahead of a big week for earnings. The gains came even as expectations of aggressive policy easing from the Federal Reserve dampen.

The Dow Jones Industrial Average eked ahead 13.1 points to 27,167.30

The S&P 500 gained 6.18 points to 2,982.79,

The NASDAQ Composite improved 43.23 points to 8,189.72

More than a quarter of the S&P 500 reports earnings this week including so-called FANG names Facebook, Alphabet and Amazon, along with blue chips like McDonald's and Boeing. Facebook, Amazon and Alphabet all traded higher on Monday and are also set to report quarterly numbers this week.

So far, more than 15% of the S&P 500 has posted quarterly results. Of those companies, 78.5% have topped analyst expectations for earnings while 67% have reported better-than-expected quarterly revenues

Market expectations for a 25 basis-point rate cut later this month are at 75.5%. Meanwhile, traders are also pricing in a 24.5% chance of a 50 basis-point cut.

Prices for the benchmark 10-year U.S. Treasury moved upward, dropping yields to 2.04% from Friday's 2.05%. Treasury prices and yields move in opposite directions.

Oil prices added 42 cents at $56.05 U.S. a barrel.

Gold prices took on $1.40 to $1,428.10 U.S. an ounce.

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