American Market News


Energy Stocks Move TSX Ahead


Baytex, Canada Goose in Spotlight

Jun 18 2018 04:25 pm EST


Markets in Toronto breezed through to the finale on Monday, powered mostly by energy stocks.

The S&P/TSX Composite Index gained 69.21 points to close Monday at 16,383.63

The Canadian dollar surrendered 0.54 cents to 75.77 cents U.S.

Baytex Energy fell 11.2%, the most on the TSX, after the oil and gas producer said it would buy rival Raging River Exploration Inc for about $2.8 billion.

Imperial Oil gained 54 cents, or 1.3%, to $43.73.

One of the top gainers on the TSX was Canada Goose Holdings, which jumped $9.59, or 9.7%, to $85.60, after brokerages raised their price targets on the stock.

Canadian Tire gained $1.22 to close the day at $176.26.

In the tech world, Constellation Software ballooned $6.48 to $1,060.56.

Shares of Valeant Pharmaceuticals, with a decline of $4.20, or 11.8%, to $31.27, was the biggest drag to the main index. U.S. health regulators declined to approve the drugmaker''s lotion to treat plaque psoriasis, citing questions related to certain data.

Among telecoms, which faltered, CAE dumped 24 cents to $27.46, while Rogers Communications retreated 29 cents to $62.06.

Shares of Arizona Mining gained $2.01, or 48.7%, to $6.14, after Australia''s South32 bid $1.3 billion to take full control of the company.

South Korea has suspended the sale of wheat and flour from Canada after the latter announced last week the discovery in mid-2017 of an unapproved genetically modified trait in Alberta.

ON BAYSTREET

The TSX Venture Exchange slid 2.16 points to 752.24

All but three of the 12 TSX subgroups were higher on the day, with energy vaulting 1.5%, and consumer discretionary and information technology gaining 0.7% each.

The three laggards were health-care, subsiding 2%, telecoms, backpedaling 0.5%, and utilities, down 0.04%.

ON WALLSTREET

Stocks fell on Monday as a potential trade war between the U.S. and China — the world''s largest economies in the world — left Wall Street rattled.

The Dow Jones Industrials plummeted 103.01 points to close at 24,987.47, with Intel as the worst-performing stock in the index. The Dow also extended its losing streak to five days.

The S&P 500 lost 5.79 points to 2,773.87, with telecom lagging.

The NASDAQ fought its way out of the shadows to enjoy a gain of 0.65 points to 7,747.02, paring losses as tech shares rose and Amazon hit an all-time high.

Shares of Disney fell 1.6% after being downgraded by Pivotal Research Group analyst Brian Wieser. In a note, Wieser said its battle for key Twenty-First Century Fox assets has placed the company in an unwinnable situation.

Intel dropped 3.4% after Northland Capital Markets downgraded the stock to underperform from market perform, citing growing competition from AMD and Nvidia and predicting slower sales growth in its data center business.

Shares of Boeing and Caterpillar both fell 0.9%. The two companies are seen as bellwethers for global trade concerns given their large amounts of overseas business.

On Friday, President Donald Trump announced that the U.S. would inflict tariffs that would impact up to $50 billion worth of Chinese goods.

According to Washington, the action comes "in light of China''s theft of intellectual property and technology and its other unfair trade practices."

Consequently, the move triggered China to retaliate, with Beijing announcing its own selection of duties on U.S. goods. The Chinese State Council''s commission on tariffs and customs stated that a 25% tariff would occur in early July on $34 billion of U.S. products.

Prices for the benchmark for the 10-year U.S. Treasury eked upward, lowering yields to 2.92% from Friday''s 2.93%. Treasury prices and

yields move in opposite directions.

Oil prices climbed 74 cents to $65.80 U.S. a barrel.

Gold prices picked up $2.40 at $1,280.90 U.S. an ounce.