TSX Slumps on Day, Scores on Month

It was a negative way to end a mostly positive month, but markets in Toronto did pump higher during August, though weakness in energy and consumer stocks did weigh on the index Monday. The TSX got pummelled 191.35 points, or 1.2%, to finish Monday at 16,514.44. The Canadian dollar gained […]

It was a negative way to end a mostly positive month, but markets in Toronto did pump higher during August, though weakness in energy and consumer stocks did weigh on the index Monday.

The TSX got pummelled 191.35 points, or 1.2%, to finish Monday at 16,514.44.

The Canadian dollar gained 0.25 cents to 76.69 cents U.S.

Despite the daily drop, the TSX had a bonanza of a month, gaining more than 345 points, or 2.13%, in August.

Most of the weight imposed on the market was by energy issues, most notably, Enerplus, losing 19 cents, or 5.2%, to $3.47, while Vermilion Energy doffed 23 cents, or 4.3%, to $5.17.

In consumer discretionary stocks, Great Canadian Gaming came up snake eyes, dropping $1.30, or 4.6%, to $26.74, while Gildan Activewear shed $1.10, or 4.2%, to $25.40.

In real-estate, InterRent REIT slipped 57 cents, or 4.4%, to $12.47, whjile Dream Office REIT let go of 67 cents, or 3.4%, to $19.07.

Gold and materials tried their best to raise the markets, with NovaGold towering over Friday’s close by 98 cents, or 7.6%, to $13.81, while Alacer Gold gained 16 cents, or 1.8%, to $13.63.

Among materials, SilverCrest Metals picked up 73 cents, or 6%, to $12.94, while Silvercorp Metals increased in price 42 cents, or 3.9%, to $11.28.

On the economic front, Statistics Canada says its industrial product price index rose 0.7% in July, driven primarily by higher prices for energy and petroleum products and primary non-ferrous metal products.

The Raw Materials Price Index increased 3%, mainly as a result of higher prices for crude energy products.

The agency also said building permits building permits fell in number 3.0% to $7.8 billion

ON BAYSTREET

The TSX Venture Exchange gained 5.82 points to close at 751.13.

All but two of the 12 TSX subgroups stayed negative on the day, with energy wilting 2.8%, consumer discretionary staggering 2.7%, and real-estate falling 1.8%.

The two gainers were gold and materials, both up 0.2%.

ON WALLSTREET

Stocks were mixed on Monday as the S&P 500 and Dow Jones Industrial Average wrapped up their best August performances since the 1980s.

The 30-stock average plunged 223.82 points to close Monday at 28,430.05.

The S&P 500 lost 7.7 points from Friday’s all-time high to 3,500.31.

The NASDAQ Composite advanced 79.82 points to 11,775.46.

The S&P 500 is up 7.6% month to date, putting the broader-market index on track for its biggest August gain since 1984. The Dow has rallied more than 8% this month and is also headed for its best August in 36 years.

Declines in bank stocks pressured both the Dow and S&P 500. JPMorgan Chase, Citigroup, Bank of America and Wells Fargo were all down more than 2%, following Treasury yields lower. Yields fell after Federal Reserve Vice Chairman Richard Clarida said rates won’t go up just because unemployment goes down.

This month’s gains have pushed the S&P 500 to record levels, officially confirming a new bull market has started.

Meanwhile, the NASDAQ got a lift after two big stock splits took effect Monday. Apple shares gained 3.4% as a four-for-one split took effect. Tesla shares added 12.6% following its five-for-one split.

The August rally built on the market’s sharp rebound off the March 23 intraday lows. Since then, the Dow has hurtled 55.7% and the S&P 500 is up 59.4%.

In an apparent long-term bet on the global economy, Warren Buffett announced Sunday that his Berkshire Hathaway conglomerate had acquired stakes of more than 5% in Japan’s five-leading trading companies.

Those companies are Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co., and Sumitomo Corp. The five businesses import everything from metals to food into Japan and provide services to manufacturers.

The Dow kicked off the week with three new constituents and with Apple having a much smaller influence on the 30-stock average.

At Monday’s open, Salesforce, Amgen and Honeywell were included in the Dow, replacing longtime component Exxon Mobil, Pfizer and Raytheon Technologies.

Prices for the 10-Year Treasury were higher, dropping yields to 0.71% from Friday’s 0.72%. Treasury prices and yields move in opposite directions.

Oil prices dipped 16 cents to $42.81 U.S. a barrel.

Gold prices eked up 30 cents to $1,975.20 U.S. an ounce.

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