Traders work on the floor of the New York Stock Exchange (NYSE) May 1. (Brendan McDermid/Reuters)
Canada’s main stock index was little changed on Monday, as a pipeline company’s shares soared on an acquisition announcement, but a major mortgage lender slumped.
Shares of Veresen Inc jumped 19.2 per cent to $18.15 on news that it agreed to be acquired in a $9.7-billion stock-and-cash deal by its larger rival Pembina Pipeline Corp .
Pembina shares declined 2.2 per cent to $42.56, and the overall energy group retreated 0.5 per cent.
The heavily weighted financials group gained 0.3 per cent, with Canada’s five biggest banks edging modestly higher.
Shares of Home Capital Group Inc, Canada’s biggest non-bank mortgage lender, tumbled 21.4 per cent to $6.32 after the company said its high-interest accounts balance was expected to fall to about $391-million from $1.4-billion a week ago.
Last month, regulators accused the company of making “materially misleading statements” to investors.
The Toronto Stock Exchange’s S&P/TSX composite index rose 7.53 points, or 0.05 per cent, to 15,593.66. Five of the index’s 10 main groups advanced.
Shaw Communications Inc stock rose 1.3 per cent to $29.31 following news late on Friday that the Canadian cable company is looking for a buyer for its U.S. data center company, ViaWest.
The overall consumer discretionary group rose 0.4 percent.
The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.7 per cent.
Wall Street was higher in late morning trading on Monday as gains in technology stocks, led by Apple, more than offset weak economic data and pushed the Nasdaq to another record high.
Apple shares jumped as much as 1.8 per cent to a record high of $146.29, boosting all the three major Wall Street indexes. Apple is due to report its results on Tuesday.
The S&P 500 technology index was up 0.6 per cent – one of only four among the 11 major S&P 500 sectors to post gains.
The other sectors were kept in check by weak construction spending and manufacturing data that came on the heels of weak first-quarter GDP data on Friday and ahead of the monthly jobs data at the end of this week.
Construction spending unexpectedly fell in March from a record high amid a pause in private construction investment after five straight months of increases.
Other data showed the ISM manufacturing activity index fell to its lowest level since December while consumer spending was unchanged in March for a second straight month and a key inflation measure recorded its first monthly drop since 2001.
The industrials and materials indexes were little changed.
“The economic data today is causing some investor nervousness ahead of the jobs report this Friday,” said Matt Miskin, senior capital markets research analyst at John Hancock Investments in Boston.
“While we’re starting the week of on a bit of weak economic news, the markets may turn back to corporate fundamentals as corporate earnings are still coming in strong.”
The Dow Jones Industrial Average was up 20.37 points, or 0.1 per cent, at 20,960.88.
The S&P 500 was up 5.27 points, or 0.22 per cent, at 2,389.47 and the Nasdaq Composite was up 29.56 points, or 0.49 per cent, at 6,077.17.
Trading volume is expected to be light, with many markets in Asia and Europe closed for Labor Day, but will pick up through the week as major earnings reports and economic data pour in.
Overall, profit at S&P 500 companies are estimated to have risen 13.6 per cent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.
Tribune Media jumped 6.1 per cent to $38.79 after Reuters reported Twenty-First Century Fox is in talks with Blackstone to buy the television station operator. Fox shares were down 0.49 per cent at $30.39.
Diamond Offshore Drilling fell 4.9 per cent to $13.71 after reporting a lower quarterly profit.
MSCI’s gauge of stocks across the globe gained 0.25 per cent.
Emerging market stocks rose 0.19 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.33 percent higher, while Japan’s Nikkei rose 0.59 percent.
U.S. drillers added nine oil rigs in the week to April 28, bringing the count to the most since April 2015, energy services company Baker Hughes said on Friday. Crude output in the United States has hit its highest since August 2015, government data shows.
“The U.S. rig count indicates that there is plenty more to come,” analysts at JBC Energy said in a report, referring to the outlook for U.S. production.
U.S. crude fell 1.28 per cent to $48.70 per barrel and Brent was last at $51.37, down 1.31 per cent on the day.
Crude prices were also pressured by data showing that growth in Chinese manufacturing slowed faster than expected in April.
The weak U.S. data initially weighed on the dollar, but moves among major currencies were relatively small. The dollar index fell 0.1 per cent, with the euro up 0.18 per cent at $1.0915.
The Japanese yen weakened 0.04 percent versus the greenback to 111.61 per dollar, while sterling was last trading at $1.2926, down 0.15 per cent on the day.
Benchmark 10-year notes last fell 6/32 in price to yield 2.3036 per cent, from 2.282 per cent late on Friday.
Spot gold dropped 0.3 per cent to $1,264.00 an ounce. U.S. gold futures fell 0.25 per cent to $1,265.10 an ounce.
Copper rose 0.76 per cent to $5,735.50 a tonne.