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Stocks Soar Monday

Baystreet.ca
Equity markets in Toronto rose on Monday as industrials shares gained on expectations of an interest ...

Equity markets in Toronto rose on Monday as industrials shares gained on expectations of an interest rate hike later this week.

The S&P/TSX Composite Index gained 80.56 points to close Monday at 16,452.34

The Canadian dollar gained 0.10 cents at 76.24 cents U.S.

The industrials sector rose, helped by growth in shares of Canadian National Railway Co and Canadian Pacific Railway.

CN spiked $2.83, or 2.6%, to $110.32, while CP jumped $7.71, or 3.3%, to $244.94

Among resource stocks, Pretium Resources, jumped $1.49, 14%, to $12.11, and Torex Gold Resources, which rose 56 cents, or 4.9%, to $11.99

Tech stocks were prospering, too, as Shopify climbed $2.21 or 1.1%, to $207.82, while BlackBerry acquired 19 cents, or 1.4%, to $13.19.

Among consumer discretionary stocks, Canadian Tire gained 83 cents to $173.71, while Magna International surged $1.80, or 2.2%, to $78.98.

Utilities bore the brunt of selling pressure Monday, as Fortis Inc. retreated 78 cents, or 1.8%, to $41.81, while Hydro One settled 17 cents to $20.00.

All was not perfect in the gold patch, either, as Centerra Gold fell five cents to $6.38, while Barrick Gold lost four cents to $17.45.

Telecoms also took some knocks, as Rogers Communications let go of 21cents to $63.87, while BCE Inc. lost 12 cents to $54.45.

The Bank of Canada will hike interest rates this Wednesday as strong job growth and rising inflation pressures override concerns about a deepening trade rift with the United States.

ON BAYSTREET

The TSX Venture Exchange reversed 0.4 points Monday to 739.70

All but three of the 12 TSX subgroups were higher on the day, as industrials soared 1.8%, while information technology vaulted 1.3%, and consumer discretionary hiked 1%.

The three laggards were utilities, down 1.1%, gold, down 0.4%, and telecoms, lower by 0.3%.

ON WALLSTREET

Stocks closed sharply higher on Monday as bank shares rose, while concerns over a trade war between the U.S. and key partners dissipated for the moment.

The Dow Jones Industrials triumphed 320.11 points, or 1.3%, to conclude Monday’s session at 24,776.59, with J.P. Morgan Chase, Goldman Sachs and Caterpillar as the best-performing stocks in the index.

The S&P 500 gained 24.35 points to 2,784.17, as financials climbed 2.3%

The NASDAQ hiked 67.81 points to 7,756.20, as Amazon, Netflix and Apple all rose at least 1%

Bank stocks rose at least 2.5%, led by Bank of America, Citigroup, Goldman Sachs and J.P. Morgan Chase. Banks posted their best day since March 26, when, as a group, they gained 3.3%.

Wall Street looked ahead to the start of the corporate earnings season, with Citigroup, J.P. Morgan Chase and Wells Fargo all scheduled to release their results from the previous quarter. S&P 500 earnings for the second quarter are expected to have grown 20%.

Prices for the benchmark for the 10-year U.S. Treasury slumped, raising yields to 2.86% from Friday’s 2.83%. Treasury prices and yields move in opposite directions.

Oil prices gained back 25 cents to $74.05 U.S. a barrel.

Gold prices picked up three dollars to $1,258.80 U.S. an ounce.