TORONTO — Canada's main stock index rose Monday as technology stocks helped lead broad-based gains despite weakness in energy, while U.S. markets also rose.
Markets picked up steam in the afternoon as Treasury yields fell.
The S&P/TSX composite index closed up 74.78 points at 21,200.06.
In New York, the Dow Jones industrial average was up 224.02 points at 38,333.45.The S&P 500 index was up 36.96 points at 4,927.93, while the Nasdaq composite was up 172.68 points at 15,628.04.
Investors were in wait-and-see mode Monday ahead of what promises to be a jam-packed week, said Michael Greenberg, senior vice-president and portfolio manager at Franklin Templeton Investment Solutions.
Several of the biggest technology names on the market are scheduled to report earnings this week in the U.S., while the U.S. Federal Reserve will announce its first rate decision of the year on Wednesday.
The central bank is expected to hold its overnight rate steady, but investors will be listening for any comments on potential cuts, said Greenberg.
“It’s not what they do. It’s really what they say,” he said.
Meanwhile, the big tech companies reporting earnings this week have a lot riding on them, said Greenberg.
“They've been a really big driver of markets so obviously, strong numbers from them would probably suggest that we can continue to party on,” he said.
But investors need to see broader strength in the markets too, and will be monitoring how the rest of the S&P 500 companies do as well, he said.
“Expectations have come down a little bit from an earnings perspective,” said Greenberg. “So there’s ... some prospects that they surprise a little bit.”
Also this week, more economic data is expected in both the U.S. and Canada, where the latest GDP numbers will offer more clarity on whether the country is tipping over into a technical recession.
“We’re kind of right at that line where a downside surprise could get us into that dreaded recession territory,” said Greenberg.
"We do think the interest rate sensitivity of Canada does put us in a bit of a weaker position compared to the U.S. as the year progresses."
Near the end of the trading day, shares in Canadian oilsands companies fell on news that the Trans Mountain pipeline expansion project could be facing another delay.
Canadian oil companies have already begun ramping up production in anticipation of the pipeline expansion coming into service, but Trans Mountain Corp. said Monday it has run into construction difficulties that will require additional time.
MEG Energy Corp. fell 4.7 per cent on the news, while shares in Canadian Natural Resources Ltd., Cenovus Energy Inc., Suncor Energy Inc. and Imperial Oil Ltd. all declined slightly.
The Canadian dollar traded for 74.39 cents UScompared with 74.35 cents US on Friday.
The March crude oil contract was down US$1.23 at US$76.78 per barrel and the March natural gas contract was down 12 cents at US$2.05 per mmBTU.
The April gold contract was up US$8.50 at US$2,044.60 an ounce and the March copper contract was up three cents at US$3.88 a pound.
-- With files from The Associated Press
This report by The Canadian Press was first published Jan. 29, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
