American Market News


Indexes Recover from Last Week's Gully


Energy, Banks Lead TSX Surge

Sep 28 2020 04:28 pm EST


Canada''s main stock index rose sharply on Monday, driven by gains in energy stocks and as strong economic data from China boosted sentiment.

The TSX prospered 177.46 points, or 1.2%, to conclude Monday''s trading at 16,242.81

The Canadian dollar regained 0.02 cents to 74.75 cents U.S.

Energy stocks showed the way Monday, with MEG Energy picking up 20 cents, or 7.6%, to $2.83, while Vermilion Energy climbed 22 cents, or 6.9%, to $3.41.

Among financials, Industrial Alliance shot $2.41, or 5.3%, higher, to $47.85, while Canadian Western Bank picked up 83 cents, or 3.1%, to $27.40.

In real-estate, Brookfield Property Partners gained 74 cents, or 4.9%, to $15.74, while Summit Industrial Income REIT gathered 49 cents, or 3.9%, to $13.10.

Only tech seemed to let the side down, as BlackBerry shed 19 cents, or 3%, to $6.18, while Photon Control let go of three cents, or 2.1%, to $1.42.

ON BAYSTREET

The TSX Venture Exchange leaped 13.57 points, or 2%, to 708.83.

All but one of the 12 TSX subgroups were up on the day, with energy sprouting 3.6%, financials higher 1.8%, and real-estate advancing 1.4%.

The lone laggard was in information technology, docking 0.1%.

ON WALLSTREET

Stocks rose sharply on Monday as Wall Street built on strong gains from the previous session amid hope for a new deal on U.S. fiscal stimulus and several corporate deals being struck.

The Dow Jones Industrial Average screamed higher 410.1 points, or 1.5%, to close Monday at 27,584.06.

The S&P 500 spiked 53.14 points, or 1.6%, to 3,351.60.

The NASDAQ leaped 203.96 points, or 1.9%, to 11,117.53.

Shares of major tech names rose broadly. Facebook advanced 0.8%, and Amazon climbed 2.6%. Apple was up 2.4%. Alphabet advanced 1.4% and Microsoft traded higher by 0.8%.

Bank stocks also contributed to Monday''s gains. JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley all popped more than 2%.

Sentiment on Wall Street got a boost after House Speaker Nancy Pelosi said Sunday a last-minute coronavirus aid deal remains on the table as House Democrats try to forge ahead on a smaller aid package costing about $2.4 trillion.

The chamber could vote on the bill as soon as next week. Still, that price tag is well above what Republican leadership has indicated it will support for a new package.

Investors also cheered a slew of corporate dealmaking activity. Devon Energy and WPX Energy announced they will mover forward with a merger of equals, sending Devon stocks up 11.1% and WPX ahead 16.4%. Meanwhile, Caesars Entertainment revealed a cash offer to buy London-based William Hill for 2.9 billion pounds.

Still, major averages are on track to post steep losses for September, a historically weak month for stocks. The Dow dropped off 2%, and the S&P 500 has fallen nearly 4.4%, while the NASDAQ has declined 6.1%. The declines followed a massive comeback from the coronavirus selloff that saw the S&P 500 climb more than 50% from its March bottom.

Prices for the 10-Year Treasury were static, maintaining yields at Friday''s 0.66%.

Oil prices recaptured 34 cents to $40.59 U.S. a barrel.

Gold prices climbed $20.70 to $1,887 U.S. an ounce.