Equities in Canada’s largest market made headway in the first hour of trade on Monday, with materials stocks leading losses as a firmer dollar and elevated U.S. Treasury yields sent gold prices to a nine-month low.
The TSX gained 40.04 points, to kick off the week at 18,421.
The Canadian dollar dropped 0.21 cents at 78.94 cents U.S.
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to consider, news came out that Canada’s health regulator will launch a public consultation program on Monday in its draft guidance for individuals growing medical cannabis at home, hoping to clamp down on people selling weed on the black market.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. BMO shares gained $1.15, or 1.1%, to $109.26.
Cormark Securities cut the rating on Canadian Imperial Bank of Commerce to buy. CIBC gained 36 cents to $122.88.
Hudbay Minerals dropped 34 cents, or 3.7%, to $8.75, and Ivanhoe Mines, gave way a dime, or 1.3%, to $7.70.
The largest percentage gainers on the TSX were Mullen Group which jumped 91 cents, or 8.3%, to $11.83, after the freight transportation provider agreed to acquire Apps Transport Group, and oil producer Imperial Oil Limited, which rose 42 cents, or 1.4%, to $30.42.
ON BAYSTREET
The TSX Venture Exchange recovered 11.84 points, or 1.3%, to begin the session at 930.20.
All but three of the 12 TSX subgroups were positive to start a new week, with consumer discretionary, real-estate and financial stocks each sprouting 0.7%.
The three laggards were gold, slipping 1.2%, energy, off 1%, and materials, sinking 0.7%.
ON WALLSTREET
U.S. stocks edged higher on Monday as sentiment got a boost after hedge fund manager David Tepper said the recent sharp rise in rates is likely over and it’s hard to be bearish on stocks right now.
The Dow Jones Industrials vaulted 291.75 points to kick off the day and the week at 31,788.05.
The S&P leaped 16.81 points to 3,858.75.
The NASDAQ Composite dipped 10.91 points, or 1.6%, to 12,920.15, with lofty valuations that got hit hard by rising yields staged a comeback. Tesla jumped 2%, while Peloton popped 5%.
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.
The stimulus news boosted stocks banking on a strong economic recovery. Shares of retailers, energy companies and banks were higher.
Disney shares added 2% after California eased Covid rules, paving the way for Disneyland to reopen on a limited basis in April.
Prices for 10-Year Treasurys sagged, raising yields to 1.59% from Friday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices shed 78 cents to $65.31 U.S. a barrel.
Gold prices dulled $15.20 to $1,683.30.