Monday, 25 October 2021 12:23 GMT

Stocks Recover from Heavy Monday Losses

(MENAFN- Stocks Recover from Heavy Monday Losses
Bausch, Imperial in Focus

Equities in Toronto rebounded on Tuesday as Prime Minister Justin Trudeau's victory in the federal election raised hopes that his government would keep the stimulus taps open, while higher oil prices lifted energy stocks.
The TSX Composite came off its highs of the day, but still recouped 89.75 points to conclude Tuesday at 20,244.29.
The Canadian dollar dipped 0.07 cents to 78.03 cents U.S.
Among health-care issues, the best-performing group of the day, Bausch Health Companies launched $2.74, or 8.2%, to $36.18, while Sienna Senior Living improved 33 cents, or 2.2%, to $15.05.
In the energy sector, Enerplus acquired 33 cents, or 4.3%, to $8.10, while Imperial Oil gained $1.38, or 4%, to $35.39.
In real-estate, Real Matters gained 39 cents, or 3.6%, to $11.09, while First Capital REIT units took on 28 cents, or 1.6%, to $18.05.
Trudeau hung onto power on Monday, saying he had won a clear mandate to govern although he fell short of his goal for a majority win. The Liberals have pledged a substantial $78 billion in new spending over five years.
On the economic page, Statistics Canada reported its new housing price index rose 0.7% in August, continuing the upward trend that began in May 2020.
The TSX Venture Exchange jumped 14.72 points, or 1.7%, to 868.61
All 12 TSX sectors were winners on the day, with health-care soaring 2.8%, energy stronger by 1.7%, and real-estate up 1%.
U.S. stocks on Tuesday fought to rebound from Monday's rout, but failed as the Dow Jones Industrial average trended lower for most of the session and closed in the red.
The 30-stock index dipped 50.63 points to 33,919.84,
The S&P 500 let go of 3.54 points to 4,354.19, following its worst day since May on Monday
The NASDAQ Composite gained 32.5 points to 14,746.40, as investors bought some major tech shares like Apple on the dip.
Also weighing on markets this month is the delta variant, which remains a global health threat as the colder months approach and vaccination hesitancy persists among some Americans. Johnson & Johnson said on Tuesday that its COVID vaccine booster shot is 94% effective. J&J shares added 0.7% on Tuesday.
There were other winners as well. Uber shares were a standout, jumping 11% after raising its outlook for the third quarter. ConocoPhillips gained more than 3% as energy stocks initially bounced following oil's snap back from the Monday selloff.
Meanwhile, Disney shares fell 3% as CEO Bob Chapek warned investors about potential headwinds for Disney+ subscriber growth in the third quarter, at a Goldman Sachs conference Tuesday.
Investors are looking for more information from Fed Chairman Jerome Powell on Wednesday about the central bank's plans to taper its bond buying, specifically when that will happen. Powell said last month that he sees the Fed slowing its $120 billion in monthly purchases at some point this year.
The Fed will release its quarterly economic forecasts, the so-called dot plot, along with the statement on interest rates at 2 p.m. ET Wednesday. Powell will have a press conference after the announcements.
Energy stocks also bounced big as oil snapped back after selling off Monday as the China property market situation caused concerns about overall global growth.
Prices for 10-Year Treasurys were unchanged, keeping yields at Monday's 1.32%.
Oil prices picked up 22 cents to $70.51 U.S. a barrel.
Gold prices hiked $11.50 to $1,775.30 U.S. an ounce.


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