BNN's closing bell update: April 23, 2018
Canada's benchmark stock index ended higher on Monday, with gains in the price of U.S. crude oil driving up shares of companies in the energy sector.
The Toronto Stock Exchange's S&P/TSX composite index rose 67.74 points, or 0.44 per cent, to 15,552.06. Eight of the 10 main industry sectors on the index were positive.
The energy sector added 1.4 per cent. Canadian Natural Resources climbed 2.2 per cent to $45.96. U.S. crude oil prices advanced 0.35 per cent to settle at US$68.64
The TSX posted 10 new 52-week highs and one new low. Across all Canadian issues there were 28 new 52-week highs and 28 new lows.
The largest per centage gainer on the TSX was The Stars Group, which rose 15.2 per cent, while the largest decliner was Aurora Cannabis, down 6.9 per cent.
Among the most active Canadian stocks by volume were Katanga Mining, down 49.2 per cent at $0.91; Baytex Energy Co, up 5.3 per cent at $5.16, and Bombardier, up 0.3 per cent at $4.01.
Wall Street ended mixed on Monday as concerns about soft smartphone demand weighed on tech stocks and pulled the Nasdaq lower while earnings optimism protected against deeper losses.
Tech stocks dragged on both the S&P 500 and the Nasdaq ahead of a big week of earnings for the sector. Chipmaker shares dropped after the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd, cut its full-year revenue target due to softer demand for smartphones.
Yields on 10-year U.S. Treasuries rose to their highest level since January 2014 amid concerns over the growing supply of government debt and accelerating inflation.
"The markets are clearly spooked by this move in the bond market," said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.
"Ultimately if these long-term interest rates continue to move higher, that's going to continue to be a stumbling block for markets and I think we'll continue to see markets trading down," said Massocca.
Earnings provided a bright spot, with 18 per cent of the companies in the S&P 500 having reported, 78.2 per cent of which have beat consensus estimates.
"By and large earnings have been very good, they continue to be supportive of the market," Massocca added.
Analysts expect earnings growth at S&P 500 companies of nearly 20 per cent in the first quarter, the strongest showing in seven years, according to Thomson Reuters data.
Google parent Alphabet Inc was up slightly in volatile after-hours trading following its earnings release; the company reported a 73 per cent jump in profits in the first quarter.
Quarterly results are expected this week from 181 S&P 500 companies, including technology heavy-hitters Facebook Inc , Microsoft Corp, Amazon.com Inc and Intel Corp.
The Dow Jones Industrial Average fell 14.25 points, or 0.06 per cent, to 24,448.69, the S&P 500 gained 0.15 points, or 0.01 per cent, to 2,670.29 and the Nasdaq Composite dropped 17.53 points, or 0.25 per cent, to 7,128.60.
Of the 11 major S&P sectors, six ended the session in positive territory, with the biggest per centage gain coming from the Telecom index.
The Philadelphia Semiconductor index closed down 1.3 per cent, posting its fourth straight session of declines on concerns of slowing smartphone demand.
Merck & Co Inc helped lift the healthcare sector, 2.4 per cent following a Goldman Sachs upgrade to "buy."
Aluminum company stocks dropped as the United States opened the door to sanctions relief for Russian aluminum giant United Company Rusal Plc. Alcoa tumbled 13.5 per cent and Arconic fell 5.2 per cent, making it the biggest per centage loser on the S&P.
Declining issues outnumbered advancing ones on the NYSE by a 1.22-to-1 ratio; on Nasdaq, a 1.39-to-1 ratio favored decliners.
Volume on U.S. exchanges was 5.76 billion shares, compared to the 6.80 billion average for the full session over the last 20 trading days.