Stocks stay green in aftermath of NAFTA deal

By Baystreet Stock Market Update

Tech punished, energy rumbles ahead

Equity prices in Toronto hung onto gains by Monday’s closing bell, boosted by energy stocks. Investors, meantime, cheered a last-minute deal to salvage the trilateral North American Free Trade pact, re-dubbed the United States-Mexico-Canada Agreement (USMCA)

The S&P/TSX Composite Index came off its highs of the day, but remained solvent 31.29 points to finish at 16,104.43

The Canadian dollar grew 1.35 cents to 78.08 cents.

The deal, announced on Sunday, helped preserve the nearly quarter-century old, $1.2-trillion open-trade zone among the United States, Canada and Mexico.

Tech stocks took a pasting, as BlackBerry gave back 74 cents, or 5.1%, to $13.88, while Constellation Software faltered $9.31, or 1%, to $940.56.

Communications stocks also felt around for bruises, as Rogers Communications lost 58 cents to $65.85, while rival Shaw hesitated 18 cents to $24.99.

In the consumer staples area, Restaurant Brands International gave back $1.15, or 1.5%, to $75.33, while grocer Metro lost 21 cents to $39.97.

Among energy stocks, MEG Energy jumped $3.07, or 38.2%, to $11.10, on Husky Energy’s hostile bid to combine MEG’s heavy oil production with Husky’s output in a $6.4-billion cash-and-stock offer.

Husky, however, fell $1.48, or 6.5%, for its part, to $21.20.

In health-care, Bausch Health sprinted $1.77, or 5.3%, to $34.94.

ON BAYSTREET

The TSX Venture Exchange stumbled 1.02 points to 708.13

All but two of the 12 subgroups finished in the red, with information technology skidding 1.3%, communications slid 0.7%, and consumer staples shed 0.6%

The two lone gainers were energy, picking up 1.7%, while health-care was stronger by 1.2%

ON WALLSTREET

Stocks closed higher on the first day of the fourth quarter as investors cheered news of Canada joining a trade deal with the United States and Mexico.

The Dow Jones Industrials rocketed 192.2 points to end Monday at 26,651.21, as Chevron and Boeing outperformed.

The S&P 500 gained 10.61 points to 2,924.59, led by gains in energy, materials and industrials shares.

The NASDAQ gained lost 9.05 points to 8,037.30, however, as declines in Facebook and Intel capped gains in tech.

Shares of Ford gained 0.8%, and General Motors jumped 1.6% following the news. Boeing, a stock sensitive to trade news, took on 2.8%

The moves on Wall Street came after the S&P 500 notched its best quarter since 2013, having risen 7.2% in that time period.

Tesla shares surged more than 17% after CEO Elon Musk settled charges with the Securities and Exchange Commission over his recent aborted bid to take the firm private.

As part of the settlement, Musk will relinquish his position as chairman of the board at Tesla for at least three years. Tesla and Musk will pay $20 million each.

Meanwhile, General Electric surged 7.1% after the company abruptly removed CEO John Flannery from his post and named Lawrence Culp as his successor.

Prices for the benchmark for the 10-year U.S.Treasury slid, driving yields up to 3.09% from Friday’s 3.06%. Treasury prices and yields move in opposite directions.

Oil prices prospered $2.32 to $75.57U.S. a barrel.

Gold prices dropped $2.90 to $1,193.30U.S. an ounce.

This article provided by NewsEdge.