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The close: TSX buoyed as energy, miners shine but BlackBerry sinks

Canada’s main stock index rallied on Friday as index heavyweights like energy and mining shone, while BlackBerry Ltd shares suffered its biggest one-day drop in 2-1/2 years after disappointing first quarter sales.

BlackBerry reported an unexpected 4.7 per cent drop in revenue from its software and services business, whose success is at the heart of Chief Executive John Chen’s turnaround plan for the company.

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At midday: TSX rallies as energy and materials lead, BlackBerry sinks

Canada’s main stock index rallied on Friday, bolstered by index heavyweights like energy and mining stocks, but BlackBerry Ltd shares suffered sharp losses after first quarter sales missed expectations.

BlackBerry reported an unexpected 4.7 per cent drop in revenue from its software and services business, whose success is at the heart of Chief Executive John Chen’s turnaround plan for the company. Shares tumbled 11.8 per cent to C$12.93, on track for its biggest one-day decline in about 2-1/2 years.

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Loonie weakens as subdued inflation reduces rate hike chances

Fergal Smith

The Canadian dollar fell on Friday against its U.S. counterpart after weaker-than-expected domestic inflation data reduced the chances of an interest rate hike next month from the Bank of Canada.

The annual inflation rate cooled to 1.3 per cent in May, below forecasts for 1.5 per cent, pushing it further away from the Bank of Canada’s 2 per cent target. The central bank’s three measures of core inflation remained subdued.

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At the open: TSX opens higher, boosted by financial, resource stocks

Sruthi Shankar

Canada’s main stock index opened moderately higher on Friday, as the index’s heavyweight sectors offset sharp losses in BlackBerry Ltd. shares, which tumbled after first quarter sales missed expectations.

The Toronto Stock Exchange’s S&P/TSX composite index rose 14.15 points, or 0.09 per cent, to 15,234.05 shortly after the open.

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Premarket: Tentative oil price recovery lifts energy stocks

Vikram Subhedar

World stocks were poised to eke out slim gains for the week on Friday as a tentative recovery in oil prices spurred investors to hunt for bargains in the beaten-down energy sector and helped commodity-related currencies gain against the dollar.

Crude oil pulled away from this week’s 10-month lows, although prices were still set for their worst first-half performance since 1997.

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The close: TSX led higher by Home Capital, health care stocks

Lewis Krauskopf

The Toronto stock market rose Thursday, led by strength in financial stocks after Home Capital Group got a lifeline from Warren Buffett’s Berkshire Hathaway, and from energy stocks as oil stabilized, and health care stocks, buoyed by health care moves in the U.S.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 71.37 points, or 0.47 per cent, at 15,219.90. Eight of the index’s 10 main groups ended higher.

The Canadian dollar was trading at 76 cents (U.S.), up half a cent.

Health care stocks jumped 4.3 per cent, rising amid a surge in U.S. biotech stocks.

Warren Buffett’s Berkshire Hathaway has agreed to indirectly acquire $400-million of Home Capital’s common shares – at a steep discount to the stock’s current trading price – and provide a new $2-billion line of credit on slightly better terms than the emergency loan Home Capital received in April from the Healthcare of Ontario Pension Plan (HOOPP).

Shares of embattled Home Capital rose 26 per cent on the news.

Ailing Sears Canada Inc. on Thursday got court protection from its creditors so it can close 59 stores – including 20 large department stores – and let go about 2,900 of its 17,000 employees to continue operating and possibly sell the business. Toronto-based Sears said it is closing 20 of its 94 department stores, plus 15 of its home stores, 10 outlet stores and 14 Hometown locations. Its shares remained halted.

U.S. healthcare stocks posted sharp gains on Thursday, with hospitals and insurers climbing after Senate Republicans released a draft bill to replace Obamacare, while a recent surge in biotechnology shares showed no signs of slowing.

Wall Street’s major indexes ended little changed on Thursday as gains in healthcare stocks after Senate Republicans unveiled their proposal to replace Obamacare were offset by declines in financial and consumer staples sectors.

The Dow Jones Industrial Average fell 12.74 points, or 0.06 per cent, to 21,397.29, the S&P 500 lost 1.11 points, or 0.05 per cent, to 2,434.5 and the Nasdaq Composite added 2.73 points, or 0.04 per cent, to 6,236.69.

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The S&P healthcare index was up 1.2 per cent after hitting its fourth record high in a row following the release of the bill, which is aimed at curbing Medicaid funding and reshaping subsidies to low-income people for private insurance. The index has risen 4 per cent in five sessions.

The Nasdaq biotechnology index rose 1 per cent giving it an 9 per cent jump for the week so far. Johnson & Johnson and Gilead were among the biggest boosts for the S&P 500 with 1 per cent and 4.3 per cent gains.

The rebound in the oil futures market pushed the S&P energy index up 0.22 per cent after 3.5 per cent of losses in the previous three sessions.

“Oil’s had a tough run in the last handful of weeks. I wouldn’t say oil being up today gives anybody a high degree of confidence we’ve seen a floor in oil yet,” Michael Scanlon, managing director, portfolio manager at Manulife Asset Management in Boston.

Gains were muted on Thursday and investors looked forward to earnings, according to Mr. Scanlon.

“Going into this quarter you’ve had negative guidance out of the banks that the trading environment hasn’t been so good. I think the market’s going to be a bit more choppy over the next few weeks,” he said. “Folks may be sitting on their hands a little as we head into the July 4th holiday and into earnings.”

Some investors were worried about the impact of low oil prices on inflation, which remains stubbornly below the Federal Reserve’s 2 per cent target even as it raises interest rates.

“Right now the bond market seems to be convinced that inflation is going to remain much lower than what the Fed thinks,” Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

The S&P bank index was down 0.6 per cent ahead of the release of the sector’s annual stress test results after the market close on Thursday.

Economic data on Thursday showed jobless claims for last week increased by 3,000 to 241,000, but remain at levels consistent with a tight labour market.

Oracle, up 8.8 percent, provided the biggest boost to the S&P after the company forecast an upbeat current-quarter profit.

Among stocks, Accenture was off 4.5 per cent after the consulting and outsourcing services provider trimmed its annual revenue forecast.

Tesla was up 2.2 per cent after the company said it was in exploratory talks with the Shanghai municipal government to establish an electric vehicle manufacturing plant in China.

Reuters

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At midday: TSX lifted by energy, financial stocks, Home Capital jumps

Sruthi Shankar

Canada’s main stock index rose modestly on Thursday as the energy and financial sectors advanced, while non-bank lender Home Capital Group jumped after it said it would get a line of credit from Berkshire Hathaway Inc.

Shares of Home Capital rose 12.2 per cent to $16.76 after it said billionaire Warren Buffett’s Berkshire would provide a $2-billion loan to its Home Trust Co unit.

Home Capital reached a settlement last week with the Ontario Securities Commission and accepted responsibility for misleading investors about problems with its mortgage underwriting procedures.

Depositors have withdrawn 95 per cent of funds from Home Capital’s high-interest savings accounts since March 27, when the company terminated the employment of former chief executive officer Martin Reid.

Financial shares were the biggest lift on the Toronto market, with Royal Bank of Canada up 0.8 per cent at $94 and Bank of Nova Scotia gaining 0.9 per cent to $79.73. The financial sector gained 0.6 per cent overall.

In early trading, the Toronto Stock Exchange’s S&P/TSX composite index was up 103.0 points, or 0.68 per cent, at 15,251.51. Half of the index’s 10 main groups were in positive territory.

Sears Canada were halted amid news the company would seek court protection from its creditors so it can close 59 stores – including 20 large department stores – and let go about 2,900 of its 17,000 employees to continue operating and possibly sell the business.

Shares of energy companies got a boost from higher oil prices. Suncor Energy Inc rose 0.4 per cent to $38.41, and Canadian Natural Resources gained 0.7 per cent to $37.72.

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Loonie strengthens on higher oil prices, solid retail sales data

Fergal Smith

The Canadian dollar strengthened on Thursday against its U.S. counterpart, boosted by higher oil prices and stronger-than-expected domestic retail sales data, while the country’s largest alternative lender got a loan from Berkshire Hathaway Inc .

Canadian retail sales rose 0.8 per cent in April from March to $48.64-billion. Analysts had forecast an increase of 0.2 per cent.

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At the open: TSX rises as Home Capital boosts finance stocks

Sruthi Shankar and Tanya Agrawal

Canada’s main stock index rose on Thursday as the energy and financial sectors advanced, while non-bank lender Home Capital Group jumped after it said it will get a line of credit from Berkshire Hathaway.

Shortly after the opening bell, the Toronto Stock Exchange’s S&P/TSX composite index was up 21.42 points, or 0.14 per cent, at 15,169.95.

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Premarket: Global stock markets stumble as oil languishes near lows

Dhara Ranasinghe

European stock markets fell for a third straight day on Thursday, as battered oil prices hovered near seven-month lows hit overnight on worries about a supply glut and falling demand.

Britain’s FTSE 100, Germany’s DAX and France’s CAC 40 all slipped 0.3-0.4 per cent as trading in Europe got under way. U.S. stock futures were also a touch weaker.

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The close: TSX ends narrowly lower as oil price slump, financials weigh

Canada’s benchmark stock index edged lower on Wednesday as a slump in oil prices pressured energy and financial shares, offsetting a rally in gold stocks as the U.S. dollar fell.

The Toronto Stock Exchange’s S&P/TSX composite index inched down 1.07 points, or 0.01 per cent, to close at 15,148.53.

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At midday: TSX lifted by energy, materials

Canada’s main stock index rose on Wednesday as gains in resource stocks, bolstered in part by steadier prices of hard-hit commodities, helped lift the market.

Suncor Energy was among the most influential gainers, rising 1.3 per cent to $38.61. Cenovus Energy shares, which were battered in the previous session by news the company would replace its chief executive and sell some assets, partially recouped losses, rebounding 1.7 per cent to $9.60.

The overall energy group climbed 0.9 per cent, as the price of oil, set for its biggest drop in the first half of the year since 1997, pared earlier losses. Prices have slumped as global inventories of both crude and refined products remain well above their long-term averages.

At 11:25 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index rose 20.79 points, or 0.14 per cent, to 15,169.45.

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The Nasdaq Composite index was higher in late morning trading on Wednesday, boosted by biotechnology stocks, while the Dow Jones Industrial Average and the S&P 500 were dragged lower by financial stocks.

Oil prices pared brief gains to trade lower, hovering near seven-month lows, putting pressure on the market.

The commodity has fallen 20 per cent this year as a global glut continues to weigh despite efforts by major producers to reduce output. Oil prices are on track for their biggest slide in the first half of any year since 1997.

The downturn has hemorrhaged the S&P energy index, making it the worst performing sector among the 11 major indexes this year. The index fell more than 13 per cent during the period, while the S&P 500 rallied 8.85 per cent.

“I think there is a bifurcation between short and long term. Clearly, to this point the Goldilocks scenario and earnings have pushed stock prices higher but oil has perhaps tempered some sentiment near-term,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis.

“If oil falls below $40, one would see pressure on overall earnings, not just the energy sector.”

Investors are also mindful of the impact of inflation on the pace of future interest rate hikes, with a tug-of-war between inflation and the future of financial stability playing out among the Federal Reserve’s policymakers.

Dallas and Chicago Fed chiefs Robert Kaplan and Charles Evans expressed concerns regarding weak inflation, which remains stubbornly below the central bank’s 2-per-cent target.

However, Boston Fed head Eric Rosengren said that the era of low interest rates in the United States poses financial stability risks.

The Dow Jones Industrial Average was down 12.93 points, or 0.06 per cent, at 21,454.21, the S&P 500 was up 2.24 points, or 0.09 per cent, at 2,439.27.

The Nasdaq Composite index was up 36.79 points, or 0.59 per cent, at 6,224.82. Biotechs were the biggest gainers on the index with Celgene, Regeneron and Amgen trading up between 2 per cent and 5 per cent.

Seven of the 11 major S&P sectors were lower, with the energy index’s 0.97-per-cent fall leading the decliners.

The financial sector fell 0.8 per cent as U.S. Treasury yield curve held near 10-year lows. Goldman Sachs was off 0.4 per cent and Bank of America fell 1 per cent, weighing on the Dow and the S&P.

Caterpillar’s 1.9-per-cent fall and General Electric’s 1.1-per-cent fall dragged on industrials.

Adobe Systems was up 3.4 per cent at $145.71 after the software forecast current-quarter above analysts’ estimates.

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Loonie retreats as price of oil sinks to 10-month low

Solarino Ho

The Canadian dollar softened on Wednesday to its weakest close in 1-1/2 weeks against the U.S. dollar as depressed oil prices offset the Bank of Canada’s shift to a more hawkish stance.

The Bank of Canada’s top two officials said last week that rate cuts put in place in 2015 had largely done their work, and the bank would assess whether rates need to be kept at near-record lows.

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At the open: TSX flat as banks offset materials

Canada’s main stock index was little changed on Wednesday, as bank stock declines offset gains in mining shares.

The Toronto Stock Exchange’s S&P/TSX composite index was off 1.33 points, at 15,148.27, see-sawing between positive and negative territory in early trading.

Four of the index’s 10 main groups were in positive territory.

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Premarket: Oil’s skid sends stocks, bond yields sliding

Marc Jones And Sujata Rao

A renewed slump in oil prices to seven-month lows dragged down world stocks on Wednesday and flattened bond curves as bets that inflation and interest rates will stay lower for even longer began to build again.

Signs of a growing glut of supply sent Brent crude futures skidding back to $45.50 a barrel as European trading gathered momentum. Poorly performing banking stocks also made for a weak start for London, Paris and Frankfurt’s stock markets.

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The close: Supply worry hits oil prices, weighs on stocks

World stock markets declined on Tuesday, as a sharp drop in oil prices weighed on the energy sector, while hawkish comments from U.S. Federal Reserve officials pushed the U.S. dollar to a one-month high.

Oil prices fell over 2 per cent to seven-month lows after supply hikes by several key producers overshadowed compliance by OPEC and non-OPEC oil producers on a deal to cut global output.

That slide weighed down energy stocks on Wall Street and in Europe. The S&P energy index dropped 1.3 per cent as the worst performing of the 11 major S&P sectors and Europe’s oil & gas sector slumped 2.2 per cent.

“Obviously you go back to the first part of 2016 when oil made a deep dip it dragged a lot of other things with it,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco.

“We are starting to get into that area where people are thinking some of the shale exploration is going to go down. That explains weakness in energy stocks.”

Oil entered the first bear market since August as concerns worsen that OPEC is failing to ease a global supply glut.

West Texas Intermediate crude, the U.S. benchmark, fell more than 20 per cent from its highest close this year, meeting the common definition of a bear market. Futures settled at $43.23 a barrel in New York, down from $54.45 on Feb. 23.

Canada’s main stock index closed sharply lower on Tuesday as energy stocks, weighed by a decline in oil prices, led the market’s broad declines, while Cenovus Energy Inc shares tumbled after the company announced its chief executive was stepping down.

The Toronto Stock Exchange’s S&P/TSX composite index was down 116.44 points, or 0.8 per cent, at 15,149.60. Nine of the index’s 10 main groups were in negative territory.

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Cenovus Energy Inc. tumbled 8.2 per cent to $9.44 after the company announced plans to replace its chief executive. The company said it will replace Chief Executive Brian Ferguson, who championed an unpopular purchase of western Canadian oil sands assets, though it failed to name a successor.

The overall energy group fell 2.2 per cent, hitting its lowest since April last year.

Suncor Energy fell 2.3 per cent to $38.11 and Canadian Natural Resources declined 1.5 per cent to $37.04.

Bank shares, which had rallied on Monday, also lost ground. Toronto-Dominion Bank fell 0.5 per cent to $65.11, while the overall financial services group fell 0.5 per cent.

Shares of Home Capital Group Inc climbed 4.3 per cent to $15.42 after the alternative lender said it would sell a portfolio of commercial mortgage assets valued at $1.2-billion to private equity firm KingSett Capital.

U.S. stocks closed lower on Tuesday as a sharp drop in oil prices hurt energy stocks and retail stocks were pulled down by concerns about Amazon.com’s plan to boost its apparel business.

Based on the latest available data, the Dow Jones Industrial Average fell 61.85 points, or 0.29 per cent, to 21,467.14, the S&P 500 lost 16.43 points, or 0.67 per cent, to 2,437.03 and the Nasdaq Composite dropped 50.98 points, or 0.82 per cent, to 6,188.03.

The Dow and benchmark S&P 500 had hit fresh records on Monday, buoyed by a rebound in the tech sector.

The pan-European FTSEurofirst 300 index lost 0.66 per cent and MSCI’s gauge of stocks across the globe shed 0.54 per cent.

The U.S. dollar strengthened for a second day, hitting a one-month high of 97.871 against a basket of major currencies as Federal Reserve officials maintained a hawkish tone on hiking interest rates.

On Monday, New York Fed President William Dudley said halting the rate-hiking cycle now would imperil the economy. That was followed by Boston Fed President Eric Rosengren, who said on Tuesday the era of low interest rates in the United States and elsewhere poses financial stability risks.

In addition, Chicago Federal Reserve Bank President Charles Evans said he was increasingly concerned that a recent softness in inflation is a sign the Fed will struggle to get price pressures back to its 2-per-cent objective.

The dollar index, tracking the unit against other key world currencies, rose 0.26 per cent, with the euro down 0.22 per cent to $1.1124. The greenback is up nearly 1 per cent for the month.

Sterling was last trading at $1.2621, down 0.87 per cent on the day. Bank of England Governor Mark Carney doused speculation that he might soon back higher interest rates, telling bankers on Tuesday that he first wanted to see how the economy coped with Brexit talks in coming months.

Benchmark 10-year notes last rose 8/32 in price to yield 2.1617 per cent, from 2.188 per cent late on Monday.

With a file from Bloomberg News

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At midday: Stocks retreat as oil price slumps on supply worry

Canada’s main stock index fell on Tuesday as energy shares dived with oil prices, while Cenovus Energy Inc tumbled after the company announced plans to replace its chief executive.

Cenovus said it will replace Chief Executive Brian Ferguson, who championed an unpopular purchase of western Canadian oil sands assets, though it failed to name a successor, sending its shares tumbling 10.5 per cent to C$9.20.

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Loonie retreats as oil price slumps to nine-month low

Fergal Smith

The Canadian dollar weakened on Tuesday against its U.S. counterpart, paring some of its recent gains as a drop in oil prices offset stronger-than-expected domestic wholesale trade data.

The loonie had surged as much as 2.5 per cent since the release of stronger-than-expected jobs data earlier this month. Most of those gains came after the Bank of Canada signaled last week that higher interest rates lie ahead. On Wednesday, the currency touched its strongest point in 3-1/2 months at $1.3165.

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At the open: Oil nose-dive takes shine off stocks

Canada’s main stock index fell on Tuesday as energy shares dived with oil prices, while Cenovus Energy tumbled 10 percent after the company announced plans to replace its chief executive.

The Toronto Stock Exchange’s S&P/TSX composite index fell 65.39 points, or 0.43 per cent, to 15,200.65, shortly after the open. Six of the index’s 10 main groups were lower.

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Oil prices hit seven-month lows on global oversupply

Jessica Resnick-Ault

Oil prices fell nearly 3 per cent to seven-month lows on Tuesday after increases in supply by several key producers overshadowed high compliance by OPEC and non-OPEC oil producers with a deal to cut global output amid a continued sell-off driven by funds.

Brent was down $1.09 at $45.82 a barrel by 1:00 p.m. (1700 GMT), after hitting $45.42, its lowest intraday since Nov. 15, two weeks before the Organization of the Petroleum Exporting Countries and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January.

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Premarket: Central bank caution beefs up global stock gains

Patrick Graham

Japan’s Nikkei jumped to a near two-year high on Tuesday and European stock markets built on their biggest one-day gain in two months as central bankers gave a tempered message about growth and the chances of rises in interest rates.

Bank of England Governor Mark Carney, fresh from a meeting which saw three colleagues on the bank’s policy committee vote for higher rates, knocked half a per cent off Britain’s pound by saying “now was not the time” to adjust borrowing costs.

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Nikkei nears two-year high as U.S. hi-tech rebound boosts mood

Hideyuki Sano

Japan’s Nikkei rose more than 1 per cent to hit a near two-year high on Tuesday following a rebound in U.S. hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade.

A big focus for Asia is whether index provider MSCI will later in the day open up its Emerging Markets Index to Chinese mainland shares which have restricted access for foreign investors.

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The close: TSX rises with bank shares; Hudson’s Bay surges on call to go private

Canada’s main stock index rose on Monday, extending its recovery from a six-month low last week, as heavyweight financial shares rallied and after Hudson’s Bay Co got a boost from an investor request that the company explore strategic options.

The Toronto Stock Exchange’s S&P/TSX composite index closed up 73.5 points, or 0.48 per cent, at 15,266.04.

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At midday: TSX lifted by banks; HBC surges

Canada’s main stock index was lifted by shares of financial firms on Monday, while energy companies got a boost as oil prices steadied after coming under pressure over the past month.

Royal Bank of Canada was the biggest gainer on the index, up 0.9 per cent at $94.43, followed by Toronto-Dominion Bank, which also advanced 0.9 per cent to $65.55. The financials group gained 0.93 per cent.

The energy group, which accounts for about 30 per cent of the index, climbed 0.2 per cent as U.S. crude prices rose 0.3 per cent to $44.86 a barrel.

Shares of Suncor Energy advanced 0.2 per cent to $39.34, while Canadian Natural Resources rose 0.7 per cent to $37.55.

U.S. activist investor Land & Buildings Investment Management LLC urged the management of Saks Fifth Avenue owner Hudson’s Bay Co to explore strategic options, including going private.

The news sent shares of Hudson’s Bay up 15.8 per cent to $10.28 and helped boost the consumer discretionary sector by 1.5 per cent.

At 11:26 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 92.91 points, or 0.61 per cent, at 15,285.45, with all nine of the index’s 10 main groups in positive territory.

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Among individual stocks, Valeant Pharmaceuticals International Inc rose 6.5 per cent to $17.89 after activist investor and hedge fund manager John Paulson joined the company’s board.

Shares of Bombardier advanced 2.0 per cent to $2.52 after the company said it had received seven more orders for its Q400 aircraft from Philippine Airlines.

Gold miners were the main laggards, with the subindex retreating 0.2 per cent as the commodity hit a four-week low following hawkish comments from a top U.S. Federal Reserve official.

Agnico Eagle Mines declined 0.7 per cent to $61.56, while Kinross Gold was down 0.2 per cent at $5.40.

U.S. stocks were higher in late morning trading on Monday, with the S&P 500 and Dow Jones Industrial Average hitting yet another record high, as technology stocks rebounded after recent losses.

The S&P technology sector is coming off its second straight weekly decline, triggered by fears of stretched valuations and investors moving money to other sectors. Tech stocks have led the S&P 500’s rally this year.

Leading the recovery, Apple rose 2.6 per cent, providing the biggest boost to the three major sectors. Microsoft and Alphabet were also up.

The tech sector’s 1.37-per-cent rise led the gainers on the S&P 500, putting it on track for its biggest one-day percentage rise since March.

“Some of it is folks taking a second-look at names that may have been unduly punished in the rotation out of tech that started about 10 days ago,” said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas in New York.

“There has been no change in the fundamentals for the tech sector. Earnings growth, earnings revisions and forward looking indicators remain healthy.”

The Dow Jones Industrial Average was up 107.62 points, or 0.5 per cent, at 21,491.9, the S&P 500 was up 15.92 points, or 0.65 per cent, at 2,449.07.

The Nasdaq Composite was up 72.12 points, or 1.17 per cent, at 6,223.88.

Consumer staples stocks, which were battered on Friday after Amazon.com’s $13.7 billion deal to buy upscale grocer Whole Foods, added to their losses.

The deal by Amazon, a proven retail disruptor, marked a major step by the internet retailer into the brick-and-mortar retail sector. Amazon rose as much as 2.9 per cent to an all-time high of $1017.

Wal-Mart, Target and Costco reversed premarket gains to trade lower.

New York Fed President William Dudley, a close ally of Fed Chair Janet Yellen, said U.S. inflation was a bit low but should rise alongside wages as the labor market continues to improve, allowing the Federal Reserve to continue gradually tightening U.S. monetary policy.

Ms. Yellen’s confidence as her team raised interest rates for the third time in six months last week surprised investors who had expected more caution about the economy following a set of weak U.S. economic data.

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Loonie hangs onto recent gains even as oil falls

Fergal Smith

The Canadian dollar was little changed against its broadly firmer U.S. counterpart on Monday, as the market digested big gains for the currency last week after the Bank of Canada signaled that higher interest rates lie ahead.

The loonie rose 1.9 per cent last week, its biggest advance in 18 months. It held onto those gains on Monday even as oil prices fell and the U.S. dollar climbed against a basket of major currencies.

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At the open: TSX rises on financials, energy shares

Canada’s main stock index rose on Monday, lifted by shares of financial firms, while energy companies got a lift as oil prices steadied after coming under pressure over the past month.

Shortly after the opening bell, the Toronto Stock Exchange’s S&P/TSX composite index was up 75.41 points, or 0.5 per cent, at 15,267.95.

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Premarket: European stocks head for biggest rise in two months

Marc Jones

European stocks headed for their biggest rise in two months on Monday as investors snapped up cut-price retail and tech stocks and France’s shares and bonds cheered a meaty parliamentary majority for pro-business President Emmanuel Macron.

Europe’s banks jumped too following broker upgrades for Credit Suisse, while there was little sign of tension for the sector or for the pound or euro as formal Brexit negotiations kicked off in Brussels.

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The close: TSX rises as energy shares rebound with oil

Canada’s main stock index rose on Friday as energy shares rebounded with oil prices, offsetting losses for consumer staple companies on news that internet retailer Amazon.com Inc was buying Whole Foods Market Inc.

The Toronto Stock Exchange’s S&P/TSX composite index unofficially closed up 31.97 points, or 0.21 per cent, at 15,192.39, after four straight days of losses. Six of the index’s 10 main groups ended higher

The Canadian consumer staples sector tumbled as much as 3.36 per cent in its sharpest fall since October 2008 before it pared losses to 1.4 per cent.

The country’s largest grocery chain operators all declined sharply.

Loblaw Companies Ltd, which has more than 2,300 corporate, franchised and associate-owned grocery stores and pharmacies across Canada, was down 3.6 per cent to $72.79, after falling as much as 5.8 per cent.

Empire Company Ltd, which has about 1,500 Canadian stores operating under banners including Sobeys and FreshCo, fell 3.6 per cent to $18.74. Metro Inc, which operates some 600 supermarkets in Quebec and Ontario, fell 2.9 per cent to $43.16.

Consumer discretionary shares also retreated sharply, declining 1.0 per cent, with Magna International Inc taking a 4.6-per-cent hit to trade at $57.30.

Dollarama Inc slid 1.1 per cent to $121.97, while Canadian Tire Corp fell 1.2 per cent to $147.67.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.5 per cent.

Teck Resources Ltd fell 8.6 per cent to $19.73, extending losses from the previous session after the miner said it was lowering its forecast of the average realized price for its steelmaking coal in the second quarter. Several analysts cut its target price on the news.

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Major U.S. stock indexes ended little changed on Friday even as Amazon.com’s $13.7-billion deal to buy upscale grocer Whole Foods roiled the retail sector and rocked shares of an array of companies including Wal-Mart and Target.

Energy sector shares helped buoy the S&P 500 and the Dow industrials, while Apple dragged on the Nasdaq.

The deal by Amazon, a proven retail disruptor, marked a major step by the internet retailer into the brick-and-mortar retail sector.

Wal-Mart shares sank 4.7 per cent, weighing the most on the Dow. Shares of Target, Walgreen Boots and Costco fell between 5 per cent and 7 per cent.

“It’s going to send a shock wave across the board, and this represents the true utmost in market disruption,” said Burns McKinney, chief investment officer with the Dallas investment team for Allianz Global Investors. “There’s big winners and big losers.”

Amazon shares gained 2.4 per cent, making the stock the biggest boost to the S&P 500. Whole Foods shares surged 29.1 per cent.

The S&P consumer staples sector fell 1 per cent, by far the worst performing major sector. The S&P 500 food and staples retailing index dropped 4.2 per cent.

Grocery chain Kroger was the biggest loser on the S&P 500, falling 9.2 per cent, while Supervalu dropped 14.4 per cent.

“I would not like to be somebody playing in the grocery space right now,” said Jan Rogers Kniffen, chief executive of retail consultancy firm J. Rogers Kniffen WWE in New York.

The Dow Jones Industrial Average rose 24.38 points, or 0.11 per cent, to end at 21,384.28, the S&P 500 gained 0.69 point, or 0.03 per cent, to 2,433.15 and the Nasdaq Composite dropped 13.74 points, or 0.22 per cent, to 6,151.76.

The technology sector fell 0.2 per cent, continuing its recent slump. Apple shares closed down 1.4 per cent.

Tech has led the S&P 500’s 8.7-per-cent rally this year, but posted its second week of declines, prompting questions over whether investors are moving money into other sectors.

“I think we need to see more of a pullback to say there is a serious rotation going on as opposed to just some profits coming off the top,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

Energy shares rose 1.7 per cent, propping up the S&P 500. Oil prices bounced off the year’s lows as some producers reduced exports and U.S. rig additions slowed.

U.S. homebuilding fell for a third straight month in May to the lowest in eight months as construction activity declined broadly. Investors were continuing to digest the Federal Reserve’s interest rate hike on Wednesday, with some concerned about the economy’s ability to absorb higher rates.

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Calendar: What investors need to know for the week ahead

A daily rundown of the economic reports and corporate earnings that will be grabbing the market's attention in the week ahead.

Monday June 19

Japan trade balance

Earnings include: Uranium Participation Corp.;

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Tuesday June 20

Japan department store sales
Germany producer price index

(8:30 a.m. ET) Canadian wholesale trade for April is released. Estimate is an increase of 0.4 per cent from April.
(8:30 a.m. ET) U.S. current account deficit for Q1 is announced. The consensus projection is $123.1-billion, up from $112.4-billion in Q4.

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At midday: TSX dips as grocers fall on Amazon-Whole Foods deal

Canada’s main stock index fell on Friday, as shares of grocers and other consumer staple companies took a beating on news that internet retail company Amazon.com Inc was buying Whole Foods Market Inc.

Amazon announced before markets opened that it was purchasing the U.S. organic supermarket chain for $13.7-billion, including debt, marking its biggest foray into the brick-and-mortar retail sector.

The Canadian consumer staples sector tumbled as much as 3.36 per cent in its sharpest fall since October 2008 before it pared losses to 2.3 per cent.

The country’s largest grocery chain operators all declined sharply.

Loblaw Companies Ltd, which has more than 2,300 corporate, franchised and associate-owned grocery stores and pharmacies across Canada, was down 3.8 per cent to $72.61, after falling as much as 5.8 per cent.

Empire Company Ltd, which has about 1,500 Canadian stores operating under banners including Sobeys and FreshCo, fell 3.3 per cent to $18.80. Metro Inc, which operates some 600 supermarkets in Quebec and Ontario, fell 4.1 per cent to $42.64.

The Toronto Stock Exchange’s S&P/TSX composite index fell 15.87 points, or 0.1 per cent, to 15,144.55. Of the index’s 10 main groups, seven lost ground.

Consumer discretionary shares also retreated sharply, declining 1.2 per cent, with Magna International Inc taking a 3.8-per-cent hit to trade at $57.73.

Dollarama Inc slid 1.5 per cent to $121.45, while Canadian Tire Corp fell 1.7 per cent to $146.90.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 0.6 per cent.

Teck Resources Ltd fell 5.2 per cent to $20.46, extending losses from the previous session after the miner said it was lowering its forecast of the average realized price for its steelmaking coal in the second quarter. Several analysts cut its target price on the news.

The energy group was one of the few gainers, climbing 0.6 per cent on the back of firmer crude oil prices. U.S. crude prices were up 0.4 percent to $44.64 a barrel.

Pipeline operator Enbridge Inc rose 1.5 per cent to $51.05.

Editor’s picks: The week's most oversold and overbought stocks on the TSX;

Friday’s analyst upgrades and downgrades;

Barlow: ‘‘The stock market is now 35% passive and 65% terrified’

U.S. stocks also fell on Friday as Wal-Mart and other retailers were slammed by Amazon.com’s biggest foray into the brick-and-mortar retail sector.

Amazon shares were up 3.2 per cent at $995.18, while Whole Foods surged 27 per cent to $41.95.

The deal by Amazon, a proven retail disruptor, is seen as a threat to supermarket chains and grocers, given the company’s readiness to sacrifice margins for market share.

Wal-Mart sank 6.2 per cent to $74.03 even as the big box retailer strengthened its ecommerce presence by buying online men’s fashion retailer Bonobos for $310-million on Friday. The stock weighed the most on the S&P 500 and the Dow.

“Dominant players like Wal-Mart, Kroger, Costco, and Target now have to look over their shoulders at the Amazon train coming down the tracks,” said Charlie O’Shea, lead retail analyst at Moody’s Investors Service.

Kroger was the biggest loser on the S&P 500, down 14 per cent; while Sprouts Farmers Market was off nearly 10 per cent.

“I would not like to be somebody playing in the grocery space right now,” said Jan Rogers Kniffen, chief executive of retail consultancy firm J. Rogers Kniffen WWE in New York.

The S&P 500 consumer staples tumbled 1.7 per cent - its biggest drop since November last year.

The Dow Jones Industrial Average was down 35.58 points, or 0.17 per cent, at 21,324.32, the S&P 500 was down 7.48 points, or 0.31 per cent, at 2,424.98 and the Nasdaq Composite was down 32.00 points, or 0.52 per cent, at 6,133.50.

Six of the 11 major S&P sectors were lower. Technology was the second-biggest loser after consumer staples, led by losses in Microsoft and Apple.

The sector, which had surged 17.4 per cent in 2017, is on track for its second straight week of decline as investors booked profits amid worries of stretched valuations.

Oil prices edged up from 2017 lows on Friday but remained on track for a fourth consecutive week of losses because of excess supplies, despite OPEC-led production cuts.

Brent crude futures were up 57 cents at $47.49 per barrel. U.S. West Texas Intermediate (WTI) crude futures were at $44.85 per barrel, up 39 cents.

“The market took a breather yesterday and is trying to recover somewhat this morning. It is by no means bullish,” said Tamas Varga, analyst at brokerage PVM Oil Associates.

Oil prices are more than 12 per cent below where they were in late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended for nine months a pledge to cut output by 1.8 million barrels per day (bpd). The cuts had been due to end this month and will now run till March.

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