Equity markets in Canada’s largest centre worked their way down from record highs on Monday, helped by real estate stocks, after President-elect Donald Trump's nomination of hedge fund manager Scott Bessent as U.S. Treasury Secretary buoyed investor sentiment globally.
The TSX slid 33.43 points to close Monday at 25,410.35
The Canadian dollar was down 0.02 cents at 71.53 cents U.S.
TD Bank is preparing to install U.S. government-ordered monitors and moved to reassure employees it had enough resources to comply with laws prohibiting money laundering. TD shares dropped 70 cents to $77.81.
Elsewhere among individual stocks, CI Financial climbed $7.21, or 30%, to $31.22, after Abu Dhabi's Mubadala Capital announced it would take the Canadian asset and wealth manager private in a $12.1-billion all-cash deal, including debt.
Gold stocks weighed on the market Monday, with New Gold the worst culprit, sagging 24 cents, or 6.1%, to $3.73, while Torex Gold settled $2.28, or 7.3%, to $28.79.
Among materials, Pan American Silver slipped $1.39, or 4.4%, to $30.17, while Silvercrest Metals ditched 59 cents, or 4.1%, to $13.84.
Energy also ran out of gas, as Baytex Energy declined 17 cents, or 4%, to $4.05, while Tamarack Valley Energy lost 15 cents, or 3.3%, to $4.46.
Real-estate stocks tried to counter these losses, as Colliers International gathered $11.15, or 5.5%, to $214.94, while StorageVault took on 10 cents, or 2.7%, to $4.12.
In tech stocks, BlackBerry spread its wings 33 cents, or 10%, to $3.62, while Shopify shares hiked $5.89, or 3%, to $155.37.
Industrials gained ground, as MDA progressed $1.27, or 4.8%, to $27.90, while Richelieu Hardware jumped $1.93, or 5%, to $40.94.
ON BAYSTREET
The TSX Venture Exchange faded 3.24 points to 602.93
All but three of the 12 subgroups were higher, led by real-estate, ahead 2.3%, industrials, better by 1.4%, and health-care, up 1.3%.
The three laggards proved to be gold, down 3.3%, materials, withering 2.2%, and energy, dipping 1.5%.
ON WALLSTREET
The Dow Jones Industrial Average and S&P 500 touched new records on Monday, kicking off the shortened trading week as investors cheered President-elect Donald Trump’s choice for Treasury secretary.
The 30-stock index hiked 440.06 points, or 1%, to 44,736.57.
The S&P 500 index progressed 18.03 points to 5,987.37.
The NASDAQ Composite gained 51.18 points to 19,054.83.
Monday brought a broad market rally as investors cheered Trump’s plan to nominate Key Square Group founder Scott Bessent as Treasury secretary. Almost four out of five S&P 500 stocks traded higher in the session.
Bath & Body Works jumped more than 18% after besting expectations of analysts polled by LSEG on both lines. Nordstrom, Best Buy, CrowdStrike and Dell Technologies are among well-known companies posting earnings results on Tuesday.
Big technology, on the other hand, was more mixed. While Amazon and Alphabet took legs up, Nvidia and Netflix dropped.
Monday’s action adds to the narrative coming off last week’s gains that the postelection rally has once again picked up steam. After surging in the wake of the presidential race’s conclusion, the ascent had taken a breather as worries about rising yields and the potential for inflation from Trump’s policies took hold.
U.S. markets are dark Thursday due to the Thanksgiving holiday and close early on Friday, so trading volume is likely to be light this week. During the shortened trading week, the interest rate outlook is likely to be a focus.
Prices for the 10-year Treasury cruised, lowering yields to 4.26% from Friday’s 4.42%. Treasury prices and yields move in opposite directions.
Oil prices flopped $2.16 to $69.08 U.S. a barrel.
Prices for gold swooned $84.40 an ounce to $2,637.90 U.S.
