American Market News


Bay Street Stocks Finish Flat


Transat offers sunny Q3 outlook

Aug 21 2017 04:35 pm EST


Stocks in Toronto traded flat Monday as declines in energy stocks were offset by a positive move in the mining sector amid higher commodity prices.

The S&P/TSX Composite Index inched down 0.45 points to 14951.88 Monday.

Transat A.T. Inc. says it''s having a better summer season than expected and its third-quarter results will show “significantly higher” adjusted earnings than during the comparable period last year.

On the economic front, Canadian wholesale trade fell by 0.5 percent in June after eight consecutive monthly increases, largely pulled down by lower sales of food and motor vehicles, Statistics Canada said on Monday.

The decrease was greater than the 0.2 percent drop forecast by analysts in a Reuters poll. Five of the seven subsectors posted declines.

In volume terms, sales edged down by 0.7 percent.

The Canadian dollar gained 0.072 cents to 79.59 cents U.S.

ON BAYSTREET

The TSX Venture Exchange slipped 1.21 points to 768.55.

Four of the 12 TSX subgroups were negative today, with energy retreating 1.61%, health-care issue off 1.04% and utility stocks slumping 0.26%.

On the upside, base metal stocks were ahead 1.61%, healthcare stocks rose 1.04% and utility issues gained 0.26%.

Decliners outweighed advancers on the Toronto stock exchange 775 to 690 with 311 issues unchanged.

Gold prices were up $6.88 to $1,291.38 U.S. an ounce.

ON WALLSTREET

U.S. stocks traded flat Monday, as investors were reluctant to jump into the markets as geopolitical tensions remained high. The Nasdaq took another dive making it a total of three straight down days.

The Dow Jones Industrial Average ended the session 29.24 points, 0.1%, higher at 21,703.75, helped by a rally in shares of Home Depot, which rose 1.2%. The S&P 500 closed 2.82 points, or 0.1%, higher at 2,428.37 amid light trading volume. The Nasdaq Composite index closed 3.4 points, or less than 0.1% lower, at 6,213.13. Among the worst performers on Wall Street, Foot Locker Inc. fell more than 7%, adding to a 28% slide on Friday.

Worries over North Korea resurfaced over the weekend after the authoritarian nation warned that its army could target the U.S. at anytime, and that Guam, Hawaii nor the mainland won''t be able to "dodge the merciless strike."

In corporate news, Nike Inc. fell 2% on a ratings downgrade. Jefferies cut its rating to hold from buy and reduced its price target to $60 from $75 as competition from Adidas AG intensifies. Nike''s growth and margins could be at risk moving ahead as elevated selling, general and administrative expenses occupy near-term funds and marketing campaigns become more important for Nike''s ability to "defend its turf" from Adidas, Jefferies said.

Shares in Sempra Energy rose 1.5% following news the San Diego Gas & Electric parent has reached a deal to buy Oncor for $9.45 billion, swooping in to snatch the power-transmission company away from Warren Buffett''s Berkshire Hathaway.

The benchmark 10-year note''s yield fell 1.4 basis point to 2.182%, its lowest level since June 26, following its longest streak of declines in more than 11 weeks. Bond prices move in the opposite direction of yields.

September West Texas Intermediate crude oil fell by $1.14, or about 2.4%, to settle at $47.37 a barrel on the New York Mercantile Exchange.