Futures Drop to Start Week - InvestingChannel

Futures Drop to Start Week

Futures for Canada’s main stock index fell on Monday, tracking weaker bullion as dollar firmed with U.S. treasury yields resuming their climb, denting commodity’s appeal.

The TSX suddenly made its way higher 255.24 points, or 1.4%, to finish Friday at 18,018.94. On the week, the gain was 320 points, or 1.78%.

The Canadian dollar dived 0.39 cents at 78.76 cents U.S.

March futures retreated 0.8% Monday.

On a day without macroeconomic figures to consider, news came out that Canada’s health regulator will launch a public consultation program on Monday in its draft guidance for individuals growing medical cannabis at home, hoping to clamp down on people selling weed on the black market.

National Bank of Canada raised the rating on Bank of Montreal to outperform from sector perform.

Cormark Securities cut the rating on Canadian Imperial Bank of Commerce to buy.

National Bank of Canada raised the rating on to outperform from sector perform.

ON BAYSTREET

The TSX Venture Exchange lost 7.95 points Friday to 918.36, for a loss on the week of 100 points, or 9.8%.

ON WALLSTREET

U.S. stock futures fell on Monday even as a new stimulus package from Washington headed toward final passage this week. Higher bond yields continued to cause a rotation out of technology stocks that have led the market’s comeback during the pandemic.

Futures for the Dow Jones Industrial index demurred 57 points, or 0.2%, to 31,408.

Futures for the S&P 500 fell 26 points, or 0.7%, at 3,813.

Futures for the NASDAQ Composite tumbled 179 points, or 1.4%, to 12,489.

Shares of Tesla were off another 3% in pre-market trading Monday. Zoom Video fell 2%.

On the flipside, the stimulus news boosted stocks banking on a strong economic recovery. Shares of retailers, energy companies and banks were higher in premarket trading.

Disney shares added 2% in premarket trading after California eased COVID rules, paving the way for Disneyland to reopen on a limited basis in April.

On the economic front, investors will get a look at wholesale inventory data from January on Monday. Several economic measures in recent weeks have shown a recovery that is picking up steam, including a better-than-expected February jobs report released on Friday.

The Senate passed a $1.9-trillion economic relief and stimulus bill on Saturday, paving the way for extensions to unemployment benefits, another round of stimulus checks and aid to state and local governments.

The Democrat-controlled House is expected to pass the bill later this week. President Joe Biden is expected to sign it into law before unemployment aid programs expire on March 14.

Overseas, In Japan, the Nikkei 225 faded 0.4 Monday, while in Hong Kong, the Hang Seng dropped 1.9%.

Oil prices moved lower 15 cents to $65.94 U.S. a barrel.

Gold prices faltered $11.20 to $1,687.30 U.S.