Oil Prices Propel Futures Higher
Futures tracking Canada's main stock index were higher on Monday thanks to a jump in crude prices, after the benchmark ended last week with its biggest loss since mid-July.
The TSX Composite tumbled 72.21 points, to conclude Friday at 20,633.06, a drop on the week of 188 points, or 0.9%.
The Canadian dollar picked up 0.02 cents Monday to 78.88 cents U.S.
September futures hiked 0.8% Monday.
Eight Capital initiate d coverage on Ballard Power Systems with a neutral rating and target price of $18.00
Prime Minister Justin Trudeau, facing possible defeat in a snap election scheduled for next Monday, defended his decision on Friday to call the vote early and said his main rival, Conservative Erin O’Toole, would undermine the fight against COVID-19.
The TSX Venture Exchange dipped 1.85 points to 903.35, or a loss on the week of 19.9 points, or 2.15%
U.S. stock index futures pointed to a market rebound on Monday as the S&P 500 comes off its longest daily losing streak since February.
Futures for the Dow Jones Industrials leaped 207 points, or 0.6%, to 34,698.
Futures for the S&P 500 hiked 25.5 points, or 0.6%, to 4,474.50.
Futures for the NASDAQ Composite Index spiked 83.25 points, or 0.5%, to 15,517.25.
All three major averages finished lower on Friday, with the Dow and S&P posting a fifth straight day of losses, while the NASDAQ Composite registered its third consecutive negative session. For the S&P 500, that was its worst losing streak since February 22.
For the week, the Dow fell 2.2%, and S&P dipped 1.7%, which was each average’s worst weekly performance since June. The tech-heavy NASDAQ posted its worst week since July, sliding 1.6%.
Despite last week’s losses, the major averages are still relatively close to their record levels. the Dow is 2.87% from its all-time high, while the S&P is 1.92% below its high-water mark. The Nasdaq Composite, meanwhile, has slid 1.87% from its record.
COVID cases appear to be trending lower in the U.S. with a seven-day average through Friday of about 136,000, down from 157,000 average new cases at the end of August, according to the Centers for Disease Control. Pfizer’s COVID vaccine could be authorized for children by the end of next month, sources familiar told Reuters.
Names linked to the reopening led the gains in pre-market trading. Delta Air Lines and United Airlines shares gained roughly 1%. Carnival Corp added 1.5%. Traditional cyclical plays GM and Citigroup rose. MGM shares rose more than 1% after an upgrade by Bernstein to outperform.
Nike shares ticked lower in the pre-market after BTIG downgraded the stock citing supply chain challenges caused by the pandemic. Production issues could significantly impact Nike’s holiday sales, BTIG said.
Overseas, in Japan, the Nikkei 225 index gained 0.2% Monday, while in Hong Kong, the Hang Seng index retreated 1.5%.
Oil prices gained 55 cents to $70.27 U.S. a barrel.
Gold prices dipped 30 cents to $1,791.80 U.S. a pound.