Markets Again Crack Record on Energy Stock Strength

Canadian energy producers lifted their brethren on the stock market and carried them Monday, to yet another all-time high.

The S&P/TSX Composite added 68.89 points to Friday’s all-time closing high, concluding Monday at 16,751.31

The Canadian dollar was down 0.15 at 75.49 cents U.S.

The most heavily traded shares by volume were oil producers and explorers Encana, bouncing $1.06, or 16.8%, to $7.22, Crescent Point, gaining 57 cents, or 10%, to $6.26.

The largest percentage gainer on the TSX was Dream Global REIT which jumped $2.39, or 16.9%, to $16.56, after it said funds managed by Blackstone Group would buy the Canadian firm in a $6.2-billion deal.

Elsewhere in real-estate, units of Dream Industrial REIT jumped 20 cents, or 1.6%, to $12.50.

Among gold concerns, Kirkland Lake Gold zoomed $2.31, or 4.1%, to $58.00, while Kinross Gold picked up 22 cents, or 3.5%, to $6.49.

Consumer staples led the side down somewhat Monday, as Alimentation Couche-Tard surrendered $2.86, or 3.4%, to $80.32, while Empire Company faded 62 cents, or 1.7%, to $35.39.

Health-care stocks weighed heavily as well, as Aurora Cannabis sank 61 cents, or 7.8%, to $7.26, while CannTrust Holdings dipped 16 cents, or 7.5%, to $1.98.

Among consumer discretionary items, Gildan Activewear drooped $1.72, or 3.5%, to $48.06, while Hudson’s Bay retreated 21 cents, or 2.1%, to $9.90.

On the economic front, Statistics Canada reported that foreign investors reduced their holdings of Canadian securities by $1.2 billion in July, the fourth decline in five months.

At the same time, Canadian investment in foreign securities increased to $12.5 billion, the largest investment since October 2018.

Elsewhere, the Canadian Real Estate Association reported Monday that home sales recorded via Canadian MLS Systems advanced for the sixth consecutive month in August.

Transactions are now running almost 17% above the six-year low reached in February 2019, but remain about 10% below highs reached in 2016 and 2017.

ON BAYSTREET

The TSX Venture Exchange fell 0.65 points to 588.51

Seven of the 12 Toronto subgroups were negative on the day, with health-care and consumer staples each fading 1.5%, while consumer discretionary stocks withered 1.1%.

The five gainers were led by energy, surging 9.4%, while real-estate strengthened 1%, and gold brightened 0.6%.

ON WALLSTREET

Stocks fell on Monday amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth.

The Dow Jones Industrials dumped 142.7 points to 27,051 – to its lows of the day, the first decline in nine days for the Dow, which had climbed back to within 1% from a record on Friday.

The S&P 500 let go of 9.43 points to 2,997.96.

The NASDAQ Composite gained some ground toward the breakeven point, but still finished negative 23.17 points to 8,153.54

The major indexes posted solid weekly gains last week and closed in on record highs set in July. Through Friday’s close, the Dow and S&P 500 were both about 0.7% below their all-time highs while the NASDAQ was nearly 2% away from its record.

General Motors shares fell 4.3% after the United Auto Workers union went on strike after contract talks between the two entities broke down. Higher gasoline prices could also potentially hurt sales.

Airlines JetBlue Airways and United Airlines dropped at least 2.8% each while American Airlines lost 7.3%. Devon Energy skyrocketed more than 12% while Marathon Oil jumped 11.6%. Dow members Exxon Mobil and Chevron rose more than 1% each.

Sentiment was also depressed after China’s industrial production fell to a new 17½-year low. Production rose 4.4% in August while analysts expected a gain of 5.2%. The industrial-production slowdown came as China and the U.S. remain embroiled in a trade war.

Prices for the benchmark 10-year U.S. Treasury gained territory, lowering yields to 1.85% from Friday’s 1.91%. Treasury prices and yields move in opposite directions

Oil prices popped $7.19 to $62.04 U.S. a barrel.

Gold prices hiked $5.90 to $1,505.40 U.S. an ounce.