(Photo: Getty images)
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MARKET REVIEW. The New York Stock Exchange was trying to bounce back before midday Monday, after a week at half mast, with the tech sector accelerating as bond rates eased a bit.
The Toronto Stock Exchange fell early in the session, dragged down by stocks in the energy, financial and industrial sectors.
The clues
In Toronto, the index S&P/TSX lost 7 points, or 0.04%, to 18,844 points.
In New York, the S&P 500 increased by 27 points, or 0.7%, to 3,940 points.
The Dow Jones climbed 71 points, or 0.22%, to 32,699 points.
The Nasdaq took 167 points, or 1.26%, to 13,382 points.
The context
Friday, the Dow Jones index had given up 0.71% to 32,627 points. The Nasdaq, which had suffered its biggest fall in three weeks the day before, had rebounded 0.76% to 13,215 points. The S&P 500 dropped 0.06% to 3,913 points.
Rates on 10-year Treasuries eased slightly to 1.69% at the opening from 1.74% on Friday.
“Investors are looking to bounce back from losses last week,” Schwab analysts commented, noting that bond yields have “calmed down a bit.”
“Information technology stocks are benefiting from this drop in rates,” they added while these so-called growth stocks have suffered in recent weeks from fears of overheating and inflation which have strained bond yields.
Apple increased by 1.5%, Tesla of 5.6%, Netflix of 1%.
Bank stocks, on the other hand, were all weighed down by the ebb in rates and by an announcement from the Fed on Friday. The central bank decided it would not extend an exemption on capital reserves that helped banks lend during the height of the health crisis.
Bank of America, JPMorgan, Goldman Sachs all lost more than 1%.
The railway company Kansas City Southern jumped 14.5%, after announcing on Sunday his marriage to Canadian Pacific Railway for 25 billion US dollars in cash and shares.
The two networks combined constitute the first rail freight network to join Canada, the United States and Mexico. The Calgary firm’s stock was down 2.30%.
Home resales for February, which showed a steeper-than-expected drop (-6.6%), did little to alarm investors. This slowdown in real estate is due in particular to the extreme cold spell which paralyzed activities in part of the country.
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