(MENAFN- Baystreet.ca)
TSX Barely Clears Breakeven
Energy, Pot Stocks Lead Pack
Equities in Toronto began Tuesday with a great deal of promise, only to see that upward momentum fizzle by the closing bell.
The S&P/TSX Composite gained 13.68 points to end Tuesday at 21,236.52.
The Canadian dollar gained 0.28 cents to 78.71 cents U.S.
Energy issues led the parade with Meg Energy up 88 cents, or 7.4%, to $12.58, while Crescent Point Energy vaulted 50 cents, or 7.4%, to $7.25.
Cannabis interest also rose well above breakeven, with Aurora Cannabis jumping 53 cents, or 7.7%, to $7.38, while Cronos Group galloped 25 cents, or 5%, to $5.23.
Among financials, Equitable Group gathered three dollars, or 4.4%, to $71.91, while Manulife traveled 83 cents, or 3.4%, to $24.94.
Tech stocks weighed things down, however, with Shopify weakening $187.63, or 10.8%, to $1,554.06, while Descartes Systems tumbled $6.61, or 6.3%, to $98.01.
Gold stocks tailed off, as B2Gold handed back 13 cents, or 2.6%, to $4.85, while Sandstorm Gold forfeited 20 cents, or 2.6%, to $7.65.
In real-estate, units of Summit Industrial Income REIT docked 89 cents, or 3.8%, to $22.61, while CAP REIT lost $1.37, or 2.3%, to $58.60.
Ontario on Monday announced restrictions to curb the spread of the coronavirus as officials warned of a 'tsunami' of new COVID-19 cases in the days and weeks ahead due to the omicron variant.
On the economic calendar, Statistics Canada said its industrial product price index increased 0.8% month over month in November and 18.1% year over year, while its raw materials price index The Raw Materials Price Index was down 1.0% on a monthly basis in November and up 36.2% year over year.
As well, Markit Canada said its manufacturing Purchasing Managers Index registered at 56.5 in December, down from 57.2 in November.
ON BAYSTREET
The TSX Venture Exchange inched up 1.39 points to 940.57.
The 12 TSX subgroups were evenly divided, with energy better by 3.7%, health-care improving 2.3%, and financials up 2%.
The half-dozen laggards were weighed most by information technology, off 3.3%, gold, slumping 1.5%, and real-estate, sliding 1.4%.
ON WALLSTREET
The Dow Jones Industrial Average rose for a second day to start 2022 as investors bet on the kinds of stocks that would benefit from a robust economy this year despite the omicron threat.
The blue-chip index collected 214.59 points to 36,799.65, an all-time record.
The much-broader S&P 500 index lost 3.02 points to 4,793.54.
The NASDAQ swooned 210.08 points, or 1.3%, at 15,622.72.
But a continuing spike in bond yields to start the New Year caused investors to rotate out of tech stocks, sending the NASDAQ lower. Losses in tech shares that were big winners last year like Nvidia and Tesla weighed on the broader market.
On the winning side in the session were stocks like banks, which stand to benefit from the rise in rates. JPMorgan Chase, American Express and Goldman Sachs were among the biggest gainers in the Dow.
Caterpillar and other stocks linked directly to the economic recovery also boomed. Energy shares like Occidental Petroleum rose 7.4% and Coterra Energy added 6.9%. Halliburton shares jumped 6% as crude prices rose and Morgan Stanley upgraded the oil services company.
Ford Motor was the biggest gainer in the S&P, up 11.6% after the company opened orders this week for its F-150 Lightning electric pickup truck, which it had previously shut down due to an overwhelming response. The company also announced plans to nearly double its production plan to 150,000 annually.
On the losing side in the session were tech names with high valuations as investors rotated out of that sector as rates increased. Tesla, fell 4.1% after jumping 13% on Monday and ending 2021 with a roughly 8.5% gain. Nvidia fell Tuesday by 2.7%. Cloud companies CrowdStrike lost 4.6%, and Okta lost 3.4%.
Investors this week have been betting the economy could overcome the latest surge in COVID cases and riding momentum from what was a stellar 2021 for the markets.
Prices for 10-year Treasurys plummeted, raising yields to 1.65% from Monday's 1.63%. Treasury prices and yields move in opposite directions.
Oil prices strengthened 92 cents to $77.00 U.S. a barrel.
Gold prices picked up $15.20 to $1,815.30 U.S. an ounce.
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