(New York and Toronto) The New York Stock Exchange concluded in dispersed order Monday at the start of a busy week between corporate results and the monetary meeting of the American Central Bank (Fed), the NASDAQ and the S&P however ending to records.
Posted on January 25, 2021 at 9:52 a.m.
Updated at 5:57 p.m.
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According to final results at the close of a volatile session, the Dow Jones slipped 0.12% to 30,960.00 points. The tech-heavy NASDAQ, on the other hand, advanced to a new high of 13,635.99 points, up 0.69% while the S&P 500 narrowly reached a new high of 3855.36 points, up from 0.36%.
On the Toronto Stock Exchange, enthusiasm for stocks of TFI International and BlackBerry offset investor concerns and allowed the benchmark to close higher.
Toronto’s S & P / TSX Composite Index gained 60.11 points to end the day with 17,906.02 points.
BlackBerry stock helped the information technology sector to rise more than 2%, while TFI’s stock supported the industrials sector in its 1.2% gain.
Telecommunications, consumer staples and energy were also among the seven sectors that advanced on Monday, compared to four that retreated.
In the currency market, the Canadian dollar traded an average of 78.51 cents US, down from its average rate of 78.64 cents US on Friday.
On the New York Commodities Exchange, the price of crude oil climbed 50 cents US to US $ 52.77 per barrel, while gold fell US $ 1 to US $ 1,855.20 per ounce . The price of copper rose 0.3 cents to US $ 3.63 per pound.
Montreal’s trucking company and software firm in Waterloo, Ont., Both saw their stock jump in the morning.
TFI’s stock rose more than 32% to a record high after announcing its US $ 800 million acquisition of UPS Freight, which will allow it to expand its smaller truck business in North America.
BlackBerry shares rose 28.3% after reaching their highest level since 2011 earlier in the session.
“It doesn’t look at the index level, but there is very high volatility below the surface in several sectors,” observed Mike Archibald, vice president and portfolio manager AGF Management.
He added that there was no fundamental explanation for the rise in BlackBerry stock, while TFI’s “strong” deal had fueled the company’s stock.
“This is something they’ve been trying to achieve for a long time and finally here is the agreement, the size of a whale, they were waiting for,” Archibald said in an interview.
Prudence
“Caution was required at the start of one of the busiest weeks of the earnings season and while the Federal Reserve will hold its first monetary meeting in 2021,” Schwab analysts summarized.
“The markets are digesting favorable news regarding the fight against COVID-19 and its variants after Moderna announced that its vaccine should be effective against mutations in the virus coming from the United Kingdom or South Africa”, added these analysts.
Seven of the eleven sectors of the S&P 500 remained in the green, including services (+ 95%) and information technology (+ 0.88%).
On the macroeconomic front, President Joe Biden’s massive $ 1.9 trillion stimulus plan met “resistance from both sides” over the weekend, Wells Fargo analysts noted, noting that the timing of these measures remained uncertain.
Among the many expected business results, those of the paper maker Kimberly-Clark (+ 3.25%) were well received while, in particular because of the epidemic, its sales of disposable tissues and toilet paper have jumped. But the group warned of a rise in commodity prices to come.
The next days are expected in particular, the results of heavyweights like Apple, Facebook and Microsoft as well as Boeing and Tesla.
On Wednesday, markets will watch Fed Chairman Jerome Powell’s press conference. Thursday, they will have to digest the first estimate of the US Gross Domestic Product for the last quarter of 2020.
Stock market soap of the moment, the American chain of video game stores GameStop, whose quotation was suspended at the beginning of the session because of too much volatility, again climbed 18.12% under the effect of speculative mechanisms, unrelated to the actual performance of the company.
Since the start of the year, the action has taken off nearly 300% on the New York Stock Exchange, which leaves even the most fervent supporters of the company perplexed, while its economic model of physical stores seems outdated. .
The title of the day was Apple, which hit a record in session, and ended up 2.77% to 14,292 dollars.
In the bond market, the 10-year yield on Treasury bills fell to 1.0295% from 1.0855% on Friday.
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