TORONTO — Energy prices helped the TSX post a gain Monday, while U.S. markets were mixed as the Dow posted a record high.
Big tech names weighed down U.S. indexes on what was otherwise a mostly positive day for markets, said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.
“Despite the market looking like it’s weak, many stocks are actually positive on the day,” he said, noting the tech sector makes up a large proportion of the S&P 500.
“(Tech stocks are) really what’s dragging the index in the U.S. to the downside.”
In New York, the Dow Jones industrial average was up 65.44 points at 41,240.52. The S&P 500 index was down 17.77 points at 5,616.84, while the Nasdaq composite was down 152.03 points at 17,725.77.
The S&P/TSX composite index closed up 62.89 points at 23,348.97.
Semiconductor giant Nvidia is set to report earnings on Wednesday, noted Archibald, in what may be the “catalyst” of the week.
“Obviously, the stock’s done extremely well this year,” he said, adding that there tends to be a lot of volatility leading up to the company’s earnings report, and afterward.
However, Archibald said investors are increasingly diversifying their holdings after a months-long narrow rally on big tech names.
“We have seen a bit of a rotation underneath the surface of the market over the last couple of weeks,” he said.
Energy prices rose significantly, with the energy index on the TSX rising 1.6 per cent as the price of oil was up 3.5 per cent.
Ongoing uncertainty over the conflict in the Middle East is driving prices higher, said Archibald. Adding to the pressure was news that Libya is closing its oilfields, halting production and exports, he said.
“All of those things are resulting in a fairly sizable move to the upside for energy,” said Archibald.
A week with several economic data reports on the schedule kicked off with a surprisingly strong report showing that orders for long-lasting goods from U.S. factories, including cars, jumped in July. This week investors will also get reports on consumer confidence, economic growth, and personal consumption and expenditures.
But Archibald said market watchers are now more invested in jobs data, with the U.S. Federal Reserve seemingly set to start cutting interest rates next month amid fears the central bank has waited too long to lower them.
This week will also bring earnings from most of the big Canadian banks, after TD kicked it off last week with a big charge weighing on earnings from the ongoing investigation into its anti-money-laundering program.
The Canadian dollar traded for 74.18 cents US compared with 73.92 cents US on Friday.
The October crude oil contract was up US$2.59 at US$77.42 per barrel and the October natural gas contract was down five cents at US$2.13 per mmBTU.
The December gold contract was up US$8.90 at US$2,555.20 an ounce and the December copper contract was up three cents at US$4.28 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Aug. 26, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
