Stocks Positive Monday Afternoon - InvestingChannel

Stocks Positive Monday Afternoon

Equities in Canada’s largest centre pulled ahead of breakeven on Monday, even as tumbling oil prices weighed on energy stocks, while investors awaited domestic inflation data and interest rate decisions from major central banks this week.

The TSX Composite advanced 77.73 points to move into noon hour EDT at 19,463.61.

The Canadian dollar doffed 0.11 cents to 75.31 cents.

Materials were surging, especially Nutrien, up $5.48, or 4.6%, to $119.38, while Teck Resources pointed upward $1.30, or 3.1%, to $43.87.

Health-care shied away, however, as Bausch Health Companies faded 35 cents, or 3.6%, to $9.42, while Cronos Group dropped a dime, or 2.4%, to $4.02.

The Bank of Canada hiked rates to 3.25% from 2.50% earlier this month to the highest level in 14 years, and is expected to raise them by 50 basis points next week.

On the economic slate, Statistics Canada said its industrial product price index declined 1.2% month over month in August. Year over year, the index increased 10.6%, while its raw materials price index fell 4.2% in August and increased 17.6% year over year.

ON BAYSTREET

The TSX Venture Exchange dropped 1.8 points to 628.26.

The 12 TSX subgroups were evenly split, with materials soaring 1.9%, gold, up 1%, and consumer discretionary stocks ahead 0.9%.

The half-dozen laggards were weighed most by health-care and communications, each down 0.7%, while consumer staples slid 0.5%.

ON WALLSTREET

Stocks rebounded from their earlier losses on Monday in a volatile trading session ahead of the Federal Reserve’s two-day policy meeting later this week.

The Dow Jones Industrials had recovered 27.61 points to break for lunch Monday at 30,850.03.

The S&P 500 sank 1.11 points to 3,872.22.

The NASDAQ Composite subtracted 10.8 points to 11,437.61.

Investors are focused on the Fed’s latest policy meeting slated to begin Tuesday. The central bank is expected to raise interest rates by another three-quarters of a point, though investors are also watching for guidance about corporate earnings before the next reporting season begins in October.

Beyond the Fed meeting, there are just a few economic data releases on deck this week, including August housing starts on Tuesday and initial jobless claims on Thursday.

Discretionary moved slightly higher amid gains from cruise and travel stocks.

All 11 major S&P 500 sectors rose or traded flat, led to the upside by consumer discretionary, industrial and materials. Financial also moved higher as some investors bet that at higher rate could benefit their bottom lines. Health care was the laggard, falling 1.3%.

Treasury prices lost ground, raising yields to 3.47% from Friday’s 3.45%. Treasury prices and yields move in opposite direction.

Oil prices staggered 40 cents to $84.71 U.S. a barrel.

Gold prices squeezed higher 20 cents to $1,683.70 U.S. an ounce.

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