North American stock markets finish higher, loonie up

North American stock markets finish higher, loonie up

North American stock markets finish higher, loonie up

TORONTO — Canada’s main stock index finished higher on Monday as investors factored an optimistic perspective on the U.S. economic recovery against more worrying sentiment from the Bank of Canada.

The S&P/TSX composite index ended the session up 72.92 points at 15,670.00, giving back some of the triple-digit gains made earlier in the day.

The materials sector gained 1.7 per cent as gold traders pushed bullion closer to the US$1,800 mark.

The industrials index rose 0.9 per cent while the financial sector was up 1.1 per cent.

A quarterly business outlook from Canada’s central bank suggested that business sentiment across the country has weakened to its lowest levels since the 2008-09 recession, and that companies are taking a cautious and muted approach to rehiring.

The Bank of Canada said its findings suggest a “strongly negative” business sentiment in all regions and sectors due to the COVID-19 pandemic, a stance that in some ways felt in opposition to signs of hope coming from investors in the United States.

Traders came off the Fourth of July holiday weekend with a spate of corporate deal-making to send their spirits higher, and Amazon stock hitting a new record high.

In New York, the Dow Jones industrial average closed up 459.67 points at 26,287.03. The S&P 500 index was up 49.71 points at 3,179.72, while the Nasdaq composite was up 226.02 points at 10,433.65.

Uber scooped up its competitor Postmates in a US$2.65 billion all-stock deal, giving the ride-hailing service another tool in its chest as it looks towards growing beyond its Uber Eats food delivery platform and into various other goods, including groceries, alcoholic beverages and pharmacy items.

Warren Buffett’s Berkshire Hathaway announced Sunday it would spend nearly US$10 billion to purchase natural gas assets from Dominion Energy.

Amazon’s shares raced past the US$3,000 mark for the first time in the company’s history, wrapping the day at US$3,057.04 per share.

Craig Fehr, investment strategist at Edward Jones, said a flurry of marquee events offered traders enough reason to swing the “pendulum of sentiment” back towards optimism.

He said last week’s U.S. payroll data, which showed the labour market improving at a “reasonably quick clip” amid the pandemic, only added to the latest round of positivity, however short-lived it might be.

“You put some of that less-than-terrible economic data in the pot and what you get is investors that are looking beyond the current spike in new cases, particularly in parts of the south,” he said.

“Our view has been that’s not going to play out perfectly every single day. There are going to be hiccups.”

The Canadian dollar traded for 73.84 cents US compared with 73.72 cents US on Friday.

The August crude contract slipped two cents at US$40.63 a barrel, while the August natural gas contract was up nearly 10 cents at US$1.83 per mmBTU.

The August gold contract was up US$3.50 at US$1,793.50 an ounce and the September copper contract was up more than two cents at US$2.77 a pound.

This report by The Canadian Press was first published July 6, 2020.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)

David Friend, The Canadian Press

Business

Just Posted

Flora Northwest was taken to the Ermineskin residential school when she was six years old. (Emily Jaycox/Ponoka News)
Ermineskin residential school survivor: ‘It just brings me back to the cries at night’

Discovery in Kamloops of remains of 215 children a painful time for survivors

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Police officers and their dogs undergo training at the RCMP Police Dog Services training centre in Innisfail, Alta., on Wednesday, July 15, 2015. Mounties say they are searching for an armed and dangerous man near a provincial park in northern Alberta who is believed to have shot and killed a service dog during a police chase. THE CANADIAN PRESS/Jeff McIntosh
RCMP search for armed man in northern Alberta after police dog shot and killed

Cpl. Deanna Fontaine says a police service dog named Jago was shot during the pursuit

Alberta now has 2,336 active cases of COVID-19, with 237 people in hospital, including 58 in intensive care. (Black Press file photo)
Red Deer down to 73 active cases of COVID-19, lowest since early November

The Central zone has 253 active cases of the virus

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Canadian Prime Minister Justin Trudeau is seen during a joint news conference following the EU-Canada Summit, in Brussels, Belgium, Tuesday June 15, 2021. Trudeau says Canada is on track now to have 68 million doses delivered by the end of July, which is more than enough to fully vaccinate all 33.2 million Canadians over the age of 12. THE CANADIAN PRESS/Adrian Wyld
Vaccine deliveries enough to fully vaccinate all eligible Canadians by end of July

Three in four eligible Canadians now have their first dose, nearly one in five fully vaccinated.

Chief Public Health Officer Theresa Tam listens to a question during a news conference, in Ottawa, Tuesday, Jan. 12, 2021. The number of confirmed COVID-19 cases attributed to the highly contagious Delta variant grew in Canada this week. THE CANADIAN PRESS/Adrian Wyld
Canada’s public health agency reports spike in confirmed cases of Delta variant

More than 2,000 cases of the variant confirmed across all 10 provinces and in one territory

The federal government says it wants to ban most flavoured vaping products in a bid to reduce their appeal to youth. THE CANADIAN PRESS/AP-Craig Mitchelldyer
Health Canada proposes ban on most vaping flavours it says appeal to youth

If implemented, the regulations would restrict all e-cigarette flavours except tobacco, mint and menthol

The Montreal Police logo is seen in Montreal on Wednesday, July 8, 2020. Some Quebec politicians are calling for an investigation after a video was released that appears to show a Montreal police officer with his leg on a young Black man’s neck during an arrest. THE CANADIAN PRESS/Paul Chiasson
Probe called for after video appearing to show Montreal officer’s knee on Black youth’s neck

Politicians call for investigation after clip evokes memories of George Floyd incident

Most Read