Skip to main content

Stocks rose on Monday, as a low reading on Chinese inflation and rising U.S. retail sales overshadowed weaker commodity prices that had weighed on Canada's benchmark index earlier in the day.

The Dow Jones industrial average closed at 13,424.23, up 95.38 points or 0.7 per cent. The broader S&P 500 closed at 1440.13, up 11.54 points or 0.8 per cent. In Canada, the S&P/TSX composite index closed at 12,229.96, up 27.92 points or 0.2 per cent.

U.S. retail sales rose 1.1 per cent in September, well above the 0.8 per cent gain expected by economists. Previous months were also revised higher, with August sales rising 1.2 per cent versus an earlier report showing a 0.9 per cent rise.

Story continues below advertisement

China reported that consumer prices in September rose just 1.9 per cent over last year, marking the slowest pace of inflation in two years. While that reflects a slowing economy, it also gives the government breathing room in introducing stimulus measures to boost activity.

Japan's Softbank Corp. agreed to buy a 70 per cent stake in Sprint Nextel Corp. for more than $20-billion (U.S.). Sprint shares, which had risen last week in the runup to the official announcement, retreated 0.7 per cent.

Citigroup Inc. rose 5.5 per cent after it reported a third-quarter profit of $1.06 a share, after excluding one-time items. That topped forecasts among analysts, who had been expecting earnings of 97 cents a share.

Other U.S. bank stocks also moved higher, driving the S&P 500 financials subindex to gains of 1.2 per cent overall. Bank of America Corp. rose 3.5 per cent and JPMorgan Chase & Co. rose 1.8 per cent.

Gold fell to $1,737.60 an ounce, down more than $22.10. That marked its biggest one-day decrease in about three months. Over the past week, gold has tumbled a total of 3 per cent, though the declines follow a 16 per cent rally from May to early October.

Among Canadian gold producers, Barrick Gold Corp. fell 0.8 per cent.

Crude oil closed in New York at $91.87 a barrel, up 1 cent. Suncor Energy Inc. rose less than 0.1 per cent.

Story continues below advertisement

Report an error Licensing Options
About the Author
Investing Reporter

David Berman has been writing about business and investing since 1995. He has written for a number of magazines, including Canadian Business and MoneySense. He worked at the Financial Post as an investing writer and daily columnist before moving to the Globe and Mail in 2008. More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨