Canada Markets closed

Markets to Start Week Pointed Downward

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Futures for Canada's main stock index fell on Monday as crude prices weakened and strong U.S. jobs data raised the chances of policy tightening by the Federal Reserve.

The S&P/TSX Composite jumped 177.84 points to finish Friday at 21,271.85, for a gain on the week of 530 points, or nearly 2.6%

The Canadian dollar crept up 0.02 cents to 78.65 cents U.S.

March futures slipped 0.2% Monday.

Ottawa Mayor Jim Watson on Sunday declared a state of emergency to help deal with an unprecedented 10-day occupation by protesting truckers which has shut down much of the core of the nation’s capital.

TD Securities resumed coverage on Extendicare with a hold rating

CIBC raised the rating on Interfor to outperform from neutral.

CIBC raised target price on Linamar to $95 from $94

ON BAYSTREET

The TSX Venture Exchange flew 15.28 points, or 1.8%, Friday to 854.47. The improvement on the week was 16.1 points, or 1.92%.

ON WALLSTREET

U.S. stock index futures turned slightly negative in early morning trading on Monday after the S&P posted its best week of 2022, boosted by quarterly earnings reports and a better-than-expected January employment report.

Futures for the Dow Jones Industrials gathered 33 points, or 0.1%, to 35,011.

Futures for the S&P 500 acquired 7.5 points, or 0.2%, to 4,500

Futures for the NASDAQ gained 36.75 points, or 0.3%, to 14,722.25.

Peloton shares surged in pre-market trading Monday on reports that Amazon and Nike are lining up as possible suitors for the interactive fitness equipment maker. The stock surged 25% on the news, which comes just a few days after activist investor Blackwells Capital urged the company to consider a sale and to fire its CEO.

Read:

Spotify saw its shares decline 1.3% after the company said it condemns past use of racial slurs by controversial podcast host Joe Rogan but would not remove him from the streaming site. Artists including Neil Young, Joni Mitchell and India.Arie have asked Spotify to remove their music in protest over Rogan.

Elsewhere, shares of Spirit Airlines jumped 11% after Frontier Airlines announced a deal to merge with its low-cost competitor. The news appeared to boost sentiment among airlines generally, with shares of United and Delta Air Lines rising nearly 2% pre-market.

So far 56% of S&P 500 companies have posted quarterly earnings, with 79% beating earnings estimates and 77% topping revenue expectations.

Individual performance has been different, however. Amazon shares added 13.5% on Friday, while Snap surged 58.8%. Facebook-parent Meta dropped 26% on Thursday after its quarterly update. The social media company is coming off its worst week on record.

Another busy week of earnings is on deck with 76 S&P 500 companies set to post results. Three Dow components will provide quarterly updates, including Disney and Coca-Cola. Amgen, Take-Two Interactive and On Semiconductor are among the names that will report earnings on Monday.

Big inflation news also is on the horizon, with the U.S. Labor Department on Thursday set to release consumer price index data for January.

The report is expected to show that inflation rose at a 7.2% pace from a year ago, which if accurate would be the fastest gain since February 1982.

Markets have been bracing against the fallout from inflation and are now pricing in about a 35% chance that the Federal Reserve will hike its benchmark short-term borrowing rate by half a percentage point, or 50 basis points, in March.

Overseas, in Japan, the Nikkei 225 faded 0.7% Monday, while in Hong Kong, the Hang Seng gained six points.

Oil prices skidded 83 cents to $91.48 U.S. a barrel.

Gold prices fell $6.90 to $1,814.70 U.S. an ounce.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting