S&P/TSX composite rises on Monday, US stocks mixed

TORONTO — Canada’s main stock index posted a gain on Monday, helped by strength in financial stocks, while American stock markets were mixed.

The S&P/TSX composite index closed up 67.10 points at 22,126.13.

In New York, the Dow Jones industrial average fell 31.08 points to 39,344.79. The S&P 500 rose 5.66 points to 5,572.85, while the Nasdaq composite rose 50.98 points to 18,403.74.

Markets were relatively quiet amid the consolidation after last week’s U.S. jobs report, said John Zechner, president and senior equity manager at J. Zechner Associates.

US stocks rose to new records on Friday after the latest jobs report came in weaker than expected, raising hopes for interest rate cuts.

“Everybody is looking forward to this week,” Zechner said.

This week will bring comments from US Federal Reserve Chairman Jerome Powell as he addresses Congress on Tuesday and Wednesday. Investors will be looking to read his comments for any new information about when the central bank might start cutting rates, Zechner said.

“I think September now looks more and more on the table in both Canada and the US,” he said.

However, a weak jobs report last week north of the border made July more likely for Canada, he added, although the central bank is wary of moving too quickly.

Investors will also be looking for fresh data on US inflation this week. The core measure of inflation is expected to be flat, Zechner said — anything less than that will be seen as a positive sign by market watchers who hope a tapering is coming soon. He added that he did not think an upside surprise was likely for this week’s inflation report.

The Fed is still looking for more concrete evidence that inflation is moving toward the two percent target, Zechner said.

“Going from nine to three-thirty is pretty good. But they seem to be stuck in that range now,” he said.

“There seems no doubt that the next move in interest rates is lower. It’s just when, and I don’t think July.”

At the end of the week, earnings season kicks off with several big U.S. banks, but markets will anticipate big tech companies coming later in earnings season, Zechner said: “That’s where all the balls are right now.”

The Canadian dollar traded at 73.35 US cents, unchanged from Friday.

The August crude contract fell 83 cents to $82.33 a barrel and the August natural gas contract rose five cents to $2.37 per mmBTU.

The August gold contract was down $34.20 at $2,363.50 an ounce and the September copper contract was down three cents at $4.62 a pound.

— With files from the Associated Press

This report by The Canadian Press was first published on July 8, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

Rosa Saba, Canadian Press