Stocks Trip to Start Week



Equity markets opened lower Monday dragged down by materials and utilities stocks, while investors awaited crucial U.S. economic data and comments from Federal Reserve officials this week.

The TSX Composite Index fell 151.69 points to open Monday and the week at 21,487.41.

The Canadian dollar inched up 0.10 cents to 72.70 cents U.S.

In corporate news, Solaris Resources filed for mixed shelf offering of up to $200 million, as per regulatory filings. Solaris dropped 13 cents, or 3.1%, to $4.10.

In economic news, Statistics Canada reported foreign investors acquired $41.2 billion of Canadian securities in April, the largest investment in two years. At the same time, Canadian investment in foreign securities slowed sharply to $2.5 million, from a record investment of $35.6 billion in March.

Moreover, housing starts zoomed to 264,500 in May, compared to 241,100 in the prior-year quarter.

Finally, the Canadian Real Estate Association reported national home sales edged back 0.6% month-over-month in May. Actual (not seasonally adjusted) monthly activity came in 5.9% below May 2023.

ON BAYSTREET

The TSX Venture Exchange dropped 0.44 points to 573.65.

All but two of the 12 subgroups were negative, weighed most by materials, down 1.2%, while utilities and information technologies each scrapped 1.1%.

The two gainers proved to be consumer staples, up 0.6%, and consumer discretionary stocks, better by 0.4%.

ON WALLSTREET

The S&P 500 was little changed on Monday as traders start a holiday-shortened week.

The Dow Jones Industrials lost 44.97 points to 38,544.19.

The much-broader index gave back 5.14 points to 5,426.46.

The NASDAQ was in the minus column 15.99 points, to 17,672.89.

Amazon, Alphabet and Meta Platforms slipped slightly. Verizon led the Dow’s losses, pulling back about 1.7%.
Nvidia shares rose as much as 1.4% to hit a record high. Nvidia has been on a tear this year thanks to unrelenting enthusiasm around artificial intelligence. Monday’s gain was short lived, however, with the stock last down 0.6%.

The major averages were mixed last week, with the blue-chip Dow posting its third losing week in four, while the S&P and NASDAQ rallied to record highs and notched their seventh up week in the last eight.

As Wall Street kicks off a holding-shortened trading week, with markets closed Wednesday for the Juneteenth holiday, investors will assess the sustainability of the ongoing rally and whether it can continue.

Investors are monitoring May retail sales data, due out on Tuesday, as well as home sales and housing starts data later in the week. Lennar, Kroger, Darden Restaurants and CarMax will report quarterly earnings.

Prices for the 10-year Treasury sagged, lifting yields to 4.29% from Friday’s 4.21%. Treasury prices and yields move in opposite directions.

Oil prices gained 83 cents to $79.28 U.S. a barrel.

Gold prices fell $11.90 to $2,337.20



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