Canada’s main stock index fell to a two-week low on Monday as weaker commodity prices sparked a selloff in energy and material sectors, while rising government bond yields kept equities under pressure.
The TSX Composite was still in the red, but had climbed to within 33.12 points of Friday’s close as morning became afternoon at 19,082.52.
The Canadian dollar had reversed and gained 0.09 cents at 73.05 cents U.S.
Dye & Durham fell 65 cents, or 6% to the bottom of the index at $10.20, following a cut in stock’s price target by Cormark Securities and CIBC.
ON BAYSTREET
The TSX Venture Exchange faded 2.57 points to 518.57.
Seven of the 12 TSX subgroups were still in the minus category, with materials down 0.8%, real-estate trailing 0.7%, and gold off 0.5%.
The five gainers were paced by utilities, ahead 0.9%, consumer staples, up 0.4%, and consumer discretionary stocks, better by 0.3%.
ON WALLSTREET
Stocks were little changed on Monday as Treasury yields rose and traders looked ahead to the release of corporate earnings from tech industry giants.
The Dow Jones Industrials pointed upward 17.89 points during Monday lunch hour to 33,145.17.
The S&P 500 index gained 12.04 points to 4,236.20.
The NASDAQ index jumped 68.17 points to 13,051.98.
Shares of oil major Chevron slipped nearly 3% following news that the company would purchase peer Hess in an all-stock deal. Pharmacy giant Walgreens ticked up 2% following an upgrade from JPMorgan while online security stock Okta slipped 8% following a data breach.
Earnings season ramps up this week, with a slew of big tech titans set to report. Investors will anticipate results from Alphabet, Amazon, Meta and Microsoft to provide key information for the stock market.
Interest rates have soared in recent weeks, with the 10-year’s break above 5% on Thursday marking the first such occurrence for the benchmark since July of 2007. Comments from Federal Reserve chair Jerome Powell that monetary policy could tighten further seemingly stoked investor concern and underpinned the rise in Treasury yields.
Prices for the 10-year Treasury moved forward, lowering yields to 4.87% from Friday’s 4.91%. Treasury prices and yields move in opposite directions.
Oil prices slid 87 cents to $87.21 U.S. a barrel.
Gold prices sagged $5.30 to $1,989.10.