Stocks in for Rough Day

Futures tracking Canada’s main stock index retreated on Monday, weighed down by weakness in crude oil and gold prices.

TSX Composite index tumbled 195.02 points, or 1%, to close Friday at 19,988.70. On the week, the loss was 269 points, or 1.33%.

The Canadian dollar slid one cent Monday to 78.24 cents U.S.

September futures were down 0.4% Monday.

National Bank of Canada raised target price on MEG Energy to $1.00 from $13.50

National also cut the target price on Suncor Energy to $41 from $42

Finally, National raised the target price on Cenovus Energy to $20.00 from $19.50.

ON BAYSTREET

The TSX Venture Exchange discarded 21.4 points, or 2.3%, to 907.31, a loss of 31 points on the week, or 3.3%.

ON WALLSTREET

U.S. stock index futures fell aggressively on Monday on concern a rebound in COVID-19 cases would slow global economic growth. The selling in futures increased as the morning progressed with Dow Jones Industrial average futures now down about 450 points.

Futures for the Dow Jones Industrials dropped 474 points, or 1.4%, to 34,096.

Futures for the S&P 500 let loose 48.5 points, or 1.1%, to 4,270.

Futures for the NASDAQ Composite Index fell 131.75 points, or 0.9%, to 14,538.75.

Stocks that would most directly benefit from a continuing swift reopening of the economy led the losses in pre-market trading with shares of Royal Caribbean and United Airlines falling more than 4%.

COVID cases have rebounded in the U.S. this month with the delta variant spreading among the unvaccinated. The U.S. is averaging nearly 30,000 new cases a day in the last seven days ending Friday, up from a seven-day average of around 11,000 cases a day a month ago, according to data from the Centers for Disease Control. Cases were already flaring up around the world because of the delta variant.

United shares lost 4.6% in pre-market trading. Delta and American Airlines also fell about 4%. Along with shares of cruise lines and airlines, key stocks linked to the global economy pulled back in pre-market trading. Caterpillar, Boeing and General Motors all lost about 2%.

A busy week of earnings is on deck, with nine Dow components set to report and 76 S&P companies will provide quarterly updates. United Airlines and American Airlines will report, as will social media companies Snap and Twitter. CSX, Johnson & Johnson, Coca-Cola, Honeywell, IBM, Intel and Netflix are also on the docket.

Overseas, in Japan, the Nikkei 225 collapsed 1.3% Monday, while in Hong Kong, the Hang Seng index tumbled 1.8%.

Oil prices sagged $2.81 to $69.00 U.S. a barrel.

Gold prices docked $12.40 to $1,802.60 U.S. a pound.