Stocks in Toronto gave up earlier gains and fell back by Monday’s closing bell, taking in the suspense over what the U.S. Federal Reserve may do with its next interest rate announcement, slated for Wednesday of this week.
The TSX sagged 16.18 points to end Monday at 20,620.36.
The Canadian dollar poked ahead 0.07 cents to 73.81 cents U.S.
Energy stocks took the worst pounding, with Secure Energy Systems losing 22 cents, or 3.5%, to $6.09, while Tamarack Valley Energy fell nine cents, or 2.4%, to $3.68.
Real-estate stocks tumbled, as units of CT REIT handed back 25 cents, or 1.6%, to $15.84, while FirstService lost $2.57, or 1.3%, to $201.23.
Gold stocks lost ground, too, Equinox Gold punished 20 cents, or 3%, to $6.53, while OceanaGold withered seven cents, or 2.3%, to $3.03.
In consumer discretionary stocks, BRP gained $1.75, or 1.7%, to $102.97, while Dollarama took on $1.36, or 1.6%, to $85.28.
In real-estate, StorageVault progressed 17 cents, or 2.9%, to $5.96, while Boardwalk REIT gained 64 cents, or 1.1%, to $58.66.
Communications stocks also found their way into the plus column, with BCE moving ahead 33 cents to $65.45, while Rogers added 32 cents to $67.26.
On the economic slate, the S&P Global Canada Manufacturing Purchasing Managers’ Index rose to a seasonally adjusted 50.2 in April after hitting 48.6 in March, its lowest level since June 2020. A reading above 50 indicates expansion in the sector.
ON BAYSTREET
The TSX Venture Exchange faded 5.37 points to 608.01.
The 12 TSX subgroups were split down the middle by the close on Monday, consumer discretionary stocks rising 0.8%, while consumer staples and communications issues each climbed 0.2%.
The half-dozen laggards were weighed most by energy, sliding 1.2%, while real-estate dipped 0.4%, and gold dulled 0.3%.
ON WALLSTREET
The Dow Jones Industrial Average inched lower Monday in the wake of the government’s seizure of First Republic over the weekend and the bank’s subsequent sale to JPMorgan Chase.
The blue-chip index sank 46.46 points to close at 34,051.70.
The S&P 500 dipped 1.61 points to 4,167.87.
The NASDAQ Composite fell 13.99 points to 12,212.68.
JPMorgan Chase shares rose 2.1% after it emerged as the winner of a weekend auction for First Republic. The big bank has acquired all of troubled lender First Republic’s deposits and a “substantial majority of assets.” This deal means that JPMorgan Chase, already one of the biggest U.S. banks, will become even larger.
JPMorgan Chase CEO Jamie Dimon said that the deal resolves much of the fallout in the banking sector that has started since the sudden collapse of Silicon Valley Bank in March.
Zions Bancorp shares shed 3.7%, and PacWest shares tumbled 10.6%.
First Republic reported last week that deposits tumbled more than 40% in the first quarter, triggering further declines in the already struggling stock. Shares have cratered 97% since the start of the year. The stock is halted for trading as of Monday.
Investors are looking to several big-name companies releasing their earnings this week. Tech giant Apple and other headliners Qualcomm and AMD are scheduled to announce their quarterly results.
First Republic’s demise and any potential fallout adds to the tension ahead of the Fed’s interest rate decision on Wednesday. The central bank is largely expected to hike one more time before pausing.
Prices for the 10-year Treasury gained ground, lowering yields to 3.58% from Friday’s 3.43%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.09 to $75.69 U.S. a barrel.
Gold prices dipped $10.50 to $1,988.60 U.S. an ounce.