TORONTO — Weakness in energy stocks weighed on Canada's main stock index Monday, while U.S. markets edged higher to start the week.
The S&P/TSX composite index closed down 80.91 points at 19,743.94.
In New York, the Dow Jones industrial average was up 34.54 points at 34,095.86. The S&P 500 index was up 7.64 points at 4,365.98,while the Nasdaq composite was up 40.50 points at 13,518.78.
The relatively flat day of trading was actually good news, said Michael Currie, senior investment adviser at TD Wealth — after markets rose significantly last week, marking the best week for Wall Street all year, it’s a sign that rally wasn’t a flash in the pan.
The Nasdaq closed up 6.6 per cent on Friday compared with the previous Friday’s close. The S&P 500 gained 5.9 per cent and the Dow 5.1 per cent, while the S&P/TSX composite rose 5.8 per cent.
“It caught people a little bit by surprise in a good way,” Currie said.
For more than a year, investors have been asking themselves how high interest rates could go, said Currie. After last week, it seems like investors have more certainty that rates are at, if not near, the top.
The U.S. Federal Reserve last week chose to keep its overnight rate steady, as rising yields in the bond market have helped the central bank in its fight against inflation. On Friday, jobs reports on both sides of the border showed signs of cooling, helping bolster optimism that the Fed and Bank of Canada are done hiking.
After a big week of earnings and economic news last week, this week is a little lighter, said Currie, giving investors a chance to digest and plan ahead.
However, some big names are expected to report their latest results in Canada this week including TC Energy, Suncor and Rogers, noted Currie.
More companies than usual in the S&P 500 have exceeded earnings expectations this season, The Associated Press reported Monday.
"All the gloom and doom that earnings are going to be terrible wasn't the case," said Currie.
The Canadian dollar traded for 73.12 cents UScompared with 73.08 cents US on Friday.
The December crude oil contract was up 31 cents at US$80.82 per barreland the December natural gas contract was down 25 cents at US$3.26 per mmBTU.
The December gold contract was down US$10.60 at US$1,988.60 an ounce and the December copper contract was up nearly four cents at US$3.72 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Nov. 6, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
