Canada’s main stock index climbed on Monday following a surge in information technology shares, while rising long-term government bond yields and risks of a potential escalation in the Middle East conflict kept investors cautious.
The TSX Composite sprinted 127.86 points to pause for lunch hour Monday at 19,590.72.
The Canadian dollar edged up 0.13 cents at 73.41 cents U.S.
LOGISTEC Corp rose $6.94, or 12.1% noon hour to $64.26, after the marine cargo handling firm agreed to go private in a $67/ share buyout deal with Blue Wolf Capital Partners.
On the economic calendar Monday, Canadian manufacturing sales rose 0.7% to $72.4 billion in August, mainly on higher sales of the petroleum and coal, food and machinery subsectors. Statistics Canada also reported wholesale sales increased 2.3% to $83.0 billion in August.
The Canadian Real Estate Association said national home sales declined 1.9% month-over-month in September. Actual (not seasonally adjusted) monthly activity came in 1.9% above September 2022.
ON BAYSTREET
The TSX Venture Exchange moved ahead 3.08 points to greet noon EDT at 532.21.
All but one of the 12 TSX subgroups were in the green midday, led by health-care, up 1.3%, information technology, up 1.2%, and financials, ahead 0.9%.
Energy proved the lone laggard, down 0.1%.
ON WALLSTREET
Stocks jumped Monday as traders awaited a deluge of corporate earnings reports and shrugged off a rise in Treasury yields.
The Dow Jones Industrials jumped 313.96 points to move into Monday afternoon at 33,984.25.
The S&P 500 index gained 42.5 points, or 1%, to 4,370.28.
The NASDAQ index sprang up 127.27 points, or 1%, at 13,534.51.
Nike and Intel led the Dow higher in Monday’s session with advances of around 2% each. All 11 S&P 500 sectors traded higher in the session.
Earnings season heats up this week with 11% of the S&P 500 slated to report results. Some notable names on deck this week include Johnson & Johnson, Bank of America, Netflix and Tesla.
Those results follow a solid start to the reporting period. Brokerage Charles Schwab rallied more than 4% on Monday after surpassing Wall Street expectations for earnings per share in the third quarter. JPMorgan Chase, Wells Fargo and UnitedHealth rose Friday after posting their latest quarterly results.
Some on Wall Street are bracing for more volatility into year-end as yields and oil prices rise, inflation remains sticky, and conflict ensues in the Middle East. But a focus on earnings and what the Federal Reserve will do with interest rates can give investors optimism in the short term.
Prices for the 10-year Treasury sagged, raising yields to 4.71% from Friday’s 4.62%. Treasury prices and yields move in opposite directions.
Oil prices dumped 66 cents to $87.03 U.S. a barrel.
Gold prices sank $6.80 to $1,934.70.