Baystreet.ca - Canada's main stock index opened lower on Monday, despite gains in health-care stocks, as investors parsed key domestic economic data that exceeded market expectations
The TSX sagged 71.17 points to begin a short week at 24,528.31, after a week in which the index gave back 2.9%.
The Canadian dollar progressed 0.32 cents to 69.31 cents U.S.
In corporate news, Unifor said on Sunday its members at Canadian National Railway (TSX:CNR) have ratified a new four-year collective agreement, averting a potential strike action. CN shares squeezed ahead four cents to $145.38.
Economically speaking, Statistics Canada said real gross domestic product increased 0.3% in October as there were increases in both services-producing and goods-producing industries, while the Industrial Product Price Index increased 0.6% month over month in November and rose 2.2% on a yearly basis. StatsCan’s raw materials price declined 0.5% month over month in November and increased 2.0% year over year.
ON BAYSTREET
The TSX Venture Exchange inched ahead 0.56 points Monday to 587.33.
All but two of 12 TSX subgroups were lower, with real-estate down 1.2%, while communications were off 1.1%, and gold slid 1%.
The two gainers were health-care, better by 2.6%, and information technology, eking up 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average and the S&P 500 declined on Monday as the market started a holiday-shortened trading week on a soft note.
The 30-stock index popped 498.02 points, or 1.2%, to 42,840.26.
The S&P 500 index recovered 63.77 points, or 1.1%, to 5,930.85
The NASDAQ rocketed 199.83 points, or 1%, to 19,572.60.
MicroStrategy slid on the stock’s first day of inclusion in the NASDAQ index.
Trading is expected to be relatively muted during the week. The New York Stock Exchange closes early Tuesday for Christmas Eve at 1 p.m. ET, and the market is shut on Christmas Day.
Weak economic data seemed to sour the sentiment. The Conference Board’s consumer confidence index for December fell to 104.7, its lowest level since September and below a Dow Jones estimate of 113.0. Meanwhile, orders for durable goods — generally big-ticket items such as aircraft, appliances and computers — fell 1.1% in November, the largest month over month drop since June.
Investors were hopeful that a so-called Santa Claus rally may help the market end 2024 on a high note, especially following a tumultuous week. Dating back to 1969, the S&P 500, on average, added 1.3% in the last five trading days of the year and the first two in January, according to the Stock Trader’s Almanac.
The second half of December is also typically the second-strongest period of the year for U.S. equities, and the S&P 500 has been up 83% of the time in December of presidential election years, according to Bank of America (NYSE:BAC).
Prices for the 10-year Treasury sank a bit, lifting yields to 4.56% from Friday’s 4.53%. Treasury prices and yields move in opposite directions.
Oil prices dipped 52 cents to $68.94 U.S. a barrel.
Prices for gold paled $18.70 an ounce to $2,626.40 U.S.