Energy Rumbles Higher, Takes TSX With it

MEG, Crescent Leap

Canada's energy-heavy main stock index gained on Monday, as oil prices jumped more than 1% on the prospect of improving demand, although gains were limited by a slide in technology stocks.

The TSX Composite remained afloat 68.95 points to greet noon at 20,471.61.

The Canadian dollar gained 0.41 cents to 79.10 cents U.S.

MEG Energy and Crescent Point Energy were the largest percentage gainers on the index, MEG progressing 69 cents, or 7.7%, to $9.60, while Crescent Point hiked 51 cents, or 9.6%, to $5.85.

ON BAYSTREET

The TSX Venture Exchange gathered 3.91 points to 880.04.

The 12 TSX sectors were evenly divided, with energy peeling away from the pack 3.8%, health-care brighter by 2.9%, and consumer discretionary stocks improving 0.5%.

The half-dozen laggards were weighed most by information technology, settling 1.6%, real-estate dumping 0.9%, and consumer staples, off 0.7%.

ON WALLSTREET

U.S. stocks were split on Monday morning as traders braced for the final week of a volatile September and Treasury yields rose.

The Dow Jones Industrials were propelled higher 159.85 points to 34,957.85, as energy stocks and bank shares pushed higher.

The S&P 500 sank 9.21 points, however, to 4,446.27.

The NASDAQ Composite tumbled 103.19 points to 14,944.51.

Alphabet, Apple and Nvidia were lower in early trading, weighing the S&P 500 and NASDAQ. Tech stocks are seen as sensitive to rising interest rates because higher debt costs can make long-term growth less attractive to investors.

Carnival Corp rose 4.5% and United Airlines added 1.8% in early trading. Shares of Boeing jumped 2%.

The rise in yields appeared to boost financial stocks on Monday, with the KBW Bank Index climbing 2.8%. Shares of Goldman Sachs and JPMorgan Chase rose more than 2%, making them some of the best performers in the Dow.

Exxon Mobil and Occidental Petroleum led gains in the energy sector as WTI crude continued its September run, topping $74 a barrel.
Also weighing on sentiment was a potential government shutdown to end the week.

Stocks linked to the economic comeback led the early gains as U.S. COVID cases continued to roll over.

U.S. cases averaged about 120,000 per day over the last week, according to data compiled by Johns Hopkins University, down from a 7-day average of more than 166,000 cases at the peak of this latest wave in early September. Pfizer CEO Albert Bourla said on Sunday that he thought the U.S. could return to normal “within a year” though annual vaccinations might be needed.

Additionally, the August reading for durable goods orders came in well above expectations on Monday, powered in large part by a jump for the transport sector.

Prices for 10-Year Treasurys lost ground, raising yields to 1.48% from Friday’s 1.46%. Treasury prices and yields move in opposite directions.

Oil prices climbed $1.24 to $75.22 U.S. a barrel.

Gold prices picked up 70 cents to $1,752.40 U.S. an ounce.