SNC,Seven Generations in Spotlight
Canada’s main stock index was on a bit of a slide by noon on Monday, as hopes of progress in resolving U.S.-China trade dispute was offset by a drop in energy shares.
The S&P/TSX Composite Index had dropped 16.2 points to approach noon 15,617.13
The Canadian dollar declined 0.16 cents to 75.16 centsU.S.
Restaurant Brands International – parent company of Tim Hortons — rose $1.16, or 1.4%, to 84.24, after reporting better-than-expected profit and raising its 2019 dividend.
Another notable gainer was Canada Goose Holdings Inc, which rose $1.07, or 1.4%, to $75.63.
The beleaguered SNC-Lavalin Group Inc fell $1.92, or 5.2%, to $34.79, after the construction and engineering firm cut its full-year profit forecast due to mining dispute in Latin America.
Another big loser proved to be Seven Generations Energy, down 18 cents, or 1.8%, to $10.04.
The TSX Venture Exchange settled 2.25 points by noon ET to 609.69
Seven of the 12 TSX subgroups had faded into the red by noon Monday, as health-care snoozed 2.9%, while consumer staples lost 0.4%, and materials were weaker by 0.3%.
The five gainers were led by information technology, up 0.9%, while energy and consumer discretionary stocks each poked up 0.1%.
Stocks wobbled on Monday as investors weighed the possibility of the U.S. and China striking a deal to end the ongoing tariff war.
The Dow Jones Industrial Average dumped 41.56 points to 25,064.77, giving up earlier gains.
The S&P 500 eked up 0.15 points to 2,708.03, as gains in the industrials sector were offset by losses in health-care.
The NASDAQ Composite held onto gains of 8.82 points to 7,307.02
Avis Budget Group jumped about 7% after Goldman Sachs upgraded the car-rental company to buy from sell, noting an attractive valuation at current levels.
Axios reported on Sunday, citing two administration officials, that President Donald Trump’s advisors have informally discussed holding a summit with Chinese President Xi Jinping next month at the Mar-a-Lago, Trump’s private club in Florida. This meeting could take place as soon as mid-March, the report said. However, the officials cited in the story added that nothing has yet been set.
That report comes after Trump said last week that a meeting between him and Xi would not happen before an early March deadline. If a trade deal is not reached before the deadline, additional U.S. tariffs on Chinese goods will take effect. That deadline apparently could be moved, however.
The trade negotiations come amid slowing economic data out of China. Spending growth in China’s Lunar New Year fell to its lowest since 2005. Last month, the Chinese government revealed the country’s economy grew at its slowest pace in 28 years.
Tesla shares gained more than 3% after an analyst at Canaccord Genuity upgraded them to buy from hold. The analyst also hiked his price target to $450 a share from $330, implying a 47% upside over the next 12 months.
Prices for the benchmark 10-year U.S.Treasury lost ground, boosting yields to 2.66% from Friday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices retreated 92 cents to $51.80U.S. a barrel.
Gold prices docked $5.40 to $1,313.10U.S. an ounce.
This article provided by NewsEdge.