Stocks Display Muscle by Closing Bell
Equities in Canada’s largest market betrayed new strength as Monday’s session came to a close, mostly due to health-care stocks being in the pink, and with the broader market focusing on the fine print of an interim U.S.-China trade deal expected later this week.
The TSX Composite Index gained 58.93 points to 17,293.42
The Canadian dollar gained 0.04 cents to 76.57 cents U.S.
HEXO was the champion of the gaining health-care issues, sprouting 25 cents, or 14.4%, to $1.99, while Canopy Growth jumped $3.15, or 11.8%, to $29.96.
Among tech issues, Sierra Wireless gained 32 cents, or 2.5%, to $12.90, while Shopify hiked $13.17, or 2.4%, to $57.40.
In the industrials sector, Ballard Power acquired 84 cents, or 7.1%, to $12.68, while Westshore Terminals spiked 81 cents, or 5%, to $17.05.
Gold did not fare so well, however, as Alacer Gold retreated 37 cents, or 5.6%, to $6.29, while Centerra Gold dropped 55 cents, or 5.4%, to $9.64
Energy’s slump was weighed in part by Husky, off 48 cents, or 4.7%, to $9.75, while Baytex Energy slimmed seven cents, or 3.7%, to $1.80.
Among materials, Pretium Resources dipped 56 cents, or 3.9%, to $13.65, while First Majestic Silver let go of 46 cents, or 3.2%, to $13.93.
The TSX Venture Exchange slid 10.07 points to 572.28
Seven of the 12 TSX subgroups gained ground by the end of the day, with health-care leaping 5.4%, information technology and industrials clicking 1.3% each.
The four laggards were weighed most by gold, dulling 1.9%, energy, down 0.9%, and materials sliding 0.8%. Consumer discretionary shares were unchanged by the closing bell.
Stocks closed higher on Monday, resuming the rally that started last week amid news the U.S. will remove China from a list of currency manipulating countries, increasing optimism ahead of the signing of a key trade agreement.
The Dow Jones Industrials picked up 83.28 points to 28,907.05
The S&P 500 increased 22.78 points to 3,288.13, hitting a record high.
The NASDAQ soared 95.07 points to 9,273.93, also an all-time high, led by Tesla shares.
Investors also looked ahead to the start of the corporate earnings season. Citigroup and J.P. Morgan Chase are among the companies set to report earnings. Expectations for the earnings season are low, however.
S&P 500 earnings are expected to have declined by 2% in the fourth quarter. If that estimate holds true, it would mark the fourth straight quarter of declining earnings.
Tesla shares rose 8.5% after an analyst at Oppenheimer hiked his price target on the stock to $612 per share from $385 per share. The analyst said Tesla’s "risk tolerance ... and larger ambition than peers are beginning to pose an existential threat to transportation companies that are unable or unwilling to innovate at a faster pace." The stock broke above $500.00 for the first time ever.
Goldman Sachs and Cisco Systems rose more than 1% each to lead the Dow higher. The S&P 500 was lifted by the tech and real estate and materials sectors, which advanced at least 1.3% each. Apple shares also rose 2.1% to hit a record high.
The decision to take China out of the currency manipulator list comes more than five months after the country was added to it.
Prices for the 10-Year U.S. Treasury faded a bit, raising yields to 1.84% from Friday’s 1.82%. Treasury prices and yields move in opposite directions.
Oil prices tailed off 98 cents to $58.06 U.S. a barrel. Gold prices fell 11 dollars to $1,549.10 U.S. an ounce.