Equities throughout North America took a bit of a breather Monday, from the dizzy heights they’d enjoyed throughout most of last week. Tech and real-estate provided much of the weight driving down the indexes.
The TSX fell back 99.21 points to close Monday at 24,723.33.
The Canadian dollar let go of 0.18 cents to 72.28 cents U.S.
The Bank of Canada’s monetary policy decision is due on Wednesday, with expectations of a 50-basis-point rate cut, which would be the first significant reduction in 15 years outside of the pandemic era.
Traders are widely anticipating an oversized rate cut by the BoC, whose odds jumped after last week’s cooler-than-expected inflation data.
In corporate news, Apollo Silver announced to further increase the size of its private placement to 67.5 million shares at $0.20 per share. Apollo shares dipped 2.5 cents, or 7.9%, to 29 cents.
Meanwhile, as the U.S. presidential elections on Nov. 5 approach, global markets are closely monitoring the event, with betting markets favoring Republican candidate Donald Trump.
Shares of Canada Goose got their wings clipped, falling $1.04, or 6.7%, to $14.47 after a report said that Goldman Sachs downgraded the stock to “sell” from “neutral”.
Real-estate issues pointed downward Monday, with CAPREIT units slipping $1.02, or 2%, to $49.82, while Killam Apartment REIT demurred 36 cents, or 1.8%, to $19.63.
Among tech issues, Converge Technology Solutions tailed off 13 cents, or 2.7%, to $4.63, while Quarterhill lost four cents, or 2.3%, to $1.73.
In health-care, Chartwell Retirement Residences doffed four cents, or 2.3%, to $1.73.
Gold tried to leaven things out, with Iamgold going north 29 cents, or 3.5%, to $8.52, while Seabridge Gold improving 84 cents, or 3.2%, to $26.79.
In energy stocks, Arc Resources vaulted 30 cents, or 1.3%, to $23.17, while Baytex Energy gathered five cents, or 1.3%, to $4.06.
ON BAYSTREET
The TSX Venture Exchange went against the grain and forged higher 1.34 points to 623.01.
All but two of the 12 TSX subgroups were lower, with real-estate retreating 1.2%, while information technology and health-care each dropped 0.8%.
Gold gained 0.5%, and energy was better by 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average fell Monday, giving back some of the strong gains from last week, as Treasury yields rose and investors awaited new earnings reports.
The 30-stock index tumbled 344.31 points to end the week’s first session at 42,931.60.
The S&P 500 index dipped 10.69 points to 5,853.98.
The NASDAQ regained 50.45 points to 18,540.01.
Consumer and homebuilder stocks were among the biggest losers as fears about higher-for-longer interest rates crept up, with Target and Builders FirstSource each down more than 4%. Lennar also shed more than 3.5%.
Momentum behind the major U.S. indexes’ recent gains may also depend on whether companies can beat expectations this earnings season, which is set to ramp up this week. Roughly one-fifth of S&P 500 companies — including major names such as Tesla, Coca-Cola and GE Aerospace — are set to report through Friday.
Earnings will be key this week with roughly one-fifth of the S&P 500 set to report. Among the companies on deck are Tesla, Coca-Cola and GE Aerospace.
Thus far, the results have been mixed. Of the 14% of S&P 500 companies that have already posted third-quarter results, 79% have beaten expectations. Analysts have significantly downgraded their earnings expectations for the quarter in recent months.
Prices for the 10-year Treasury sank, raising yields to 4.19% from Friday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.17 to $70.39 U.S. a barrel.
Prices for gold advanced $4.50 an ounce to $2.734.50 U.S.