(CORRECTION: IVEY PMI CLARIFIES PREVIOUS YEAR’S READING)
Equities in Canada’s largest market concluded the week’s first session on a down note, as health-care and real-estate weighed on investors, already nervous about the prospect of higher interest rates to battle inflation.
The TSX closed Monday down 129.42 points to 20,628.92.
The Canadian dollar docked 0.23 cents at 74.38 cents U.S.
Health-care weighed things down Monday, with Bellus Health down 36 cents, or 3.3%, to $10.49, while Cronos Group slid 11 cents, or 3.3%, to $3.26.
In real-estate, Primaris REIT dived 47 cents, or 3%, to $15.14, while Northwest Health-care Properties REIT parted with 26 cents, or 2.6%, to $9.74.
Materials were bludgeoned, as First Quantum Minerals dropped $2.25, or 8.1%, to $25.65, while Osisko Mining faded 35 cents, or 10.5%, to $3.00.
In communications, Rogers gained 58 cents to $65.92, while Quebecor eked ahead two cents to $32.02.
On the economic calendar, the IVEY PMI climbed last month to 60.1 from December’s 49.3, and a reading of 64.9 in January 2022.
The TSX Venture Exchange slipped 6.49 points, or 1.1%, to 613.60.
All but one of the 12 subgroups remained in the minus category, with health-care wilting 1.9%, real-estate down 1.4%, materials, off 1.3%.
Only communications held out against the negative side, gaining 0.04%.
U.S. stocks fell Monday as investors grew increasingly cautious of rising bond yields while watching latest batch of corporate earnings.
The Dow Jones Industrials came off its lows of the morning, but closed the day down 34.99 points at 33,891.02.
The S&P 500 dipped 25.4 points to 4,111.08.
The NASDAQ Composite was in the minus column 119.5 points, or 1% to 11,887.45.
Investors were taking some profits after the stock market’s hot start to the year. The S&P 500 is up more than 7% for 2023, while the NASDAQ has advanced for the last five weeks, a streak not seen since November 2021.
Tyson Foods fell 5% on the back of a weaker-than-expected earnings report. The Children’s Place, a kids’ apparel retailer, lost nearly 4% after it pulled back its outlook for its fourth quarter.
Apple shed nearly 2%, pressuring the Dow as concerns over higher rates weighed on some tech stocks. Retail stocks Target and Nike also traded down, while defensives such as Merck and Coca-Cola advanced.
Disney, Chipotle, Dupont and PepsiCo are among the major companies reporting earnings this week, which investors will be watching for any indications that prior interest rate hikes have hurt companies’ finances. With the earnings season about halfway over, profits for S&P
500 companies are on pace to be 2.7% lower for the fourth quarter.
Prices for the 10-year Treasury slid, raising yields to 3.65% from Friday’s 3.53%. Treasury prices and yields move in opposite directions.
Oil prices grabbed $1.01 to $74.40 U.S. a barrel.
Gold prices hiked $4.90 to $1,881.50 U.S. an ounce.