Futures Point Higher on Firmer Commodities - InvestingChannel

Futures Point Higher on Firmer Commodities

Futures for Canada’s main stock index rose on Monday, tracking higher commodity prices, while investors awaited domestic manufacturing sales data for January to gauge the country’s economic health.

The TSX poked forward 6.75 points by the close Friday at 18,851.32, for an improvement on the week of 470 points, or 2.56%.

The Canadian dollar inched back 0.01 cents at 80.19 cents U.S.

March futures increased 0.1% Monday.

Automation company Promation’s president says the company had been banking on a weaker currency to help it win a new U.S. contract, but slower pace of vaccinations in Canada could erase that competitive edge.

Canaccord Genuity raised the rating on Crew Energy to speculative buy from hold.

JP Morgan raises target price on Franco-Nevada to $205.00 from $198.00

Citigroup raised price target on TCP Energy to $67.00 from $65.00

On the economic slate, Statistics Canada said manufacturing sales rose 3.1% to $56.2 billion in January, exceeding the level observed before the COVID-19 pandemic (February 2020) for the first time.

Higher sales of wood products, computer and electronic products, and primary metals contributed the most to the gains.

Elsewhere, Canada Mortgage and Housing Corporation reported the trend in housing starts was 242,777 units in February, down from 244,963 units in January. The SAAR of urban starts decreased by 14% in February to 231,042 units.

ON BAYSTREET

The TSX Venture Exchange roused itself enough Friday to gain 0.91 points to 982.25. The Venture Exchange was up on the week nearly 64 points, or 6.96%.

ON WALLSTREET

U.S. stock futures rose on Monday, indicating the Dow Jones industrial average and S&P 500 will add to record highs at the open.

Futures for the 30-stock index gained 71 points, or 0.2%, to 32,736.

Futures for the S&P docked one point at 3,931.75.

Futures for the NASDAQ Composite fell 6.25 points, or 0.1%, to 12,918.

Stocks that will benefit most from a swift economic comeback from the pandemic led the gains in pre-market trading. American Airlines and United Airlines shares were both up more than 2% in pre-market trading. Boeing, Gap and various energy stocks were also higher.

Stocks rose last week with the Dow Jones Industrial Average rising 4% and the S&P 500 gaining 2.6%. The S&P 500 and the Dow both closed at record highs Friday.

The NASDAQ Composite advanced 3% last week, despite a selloff on Friday spurred by rising interest rates. The jump in bond yields has challenged growth stocks in recent weeks and sent investors into cyclical pockets of the market. The NASDAQ is up less than 1% this month, while the Dow is ahead 6% and S&P is up 3.5%.

Investors will be gearing up for Wednesday when the Federal Reserve will deliver its decision on interest rates. The bond market in the coming week will likely take its cues from the Fed.

On the vaccine front, Biden announced last week that he would direct states to make all adults eligible for the vaccine by May 1. Biden also set a goal for Americans to be able to gather in person with their friends and loved ones in small groups to celebrate the Fourth of July.

Overseas, In Japan, the Nikkei 225 gathered 0.2-% Monday, while in Hong Kong, the Hang Seng picked up 0.3%.

Oil prices doffed 60 cents to $65.01 U.S. a barrel.

Gold prices moved forward $7.80 to $1,698.70 U.S.