Market movers: Stocks that saw action on Monday - and why

A roundup of some of the North American equities making moves in both directions today

On the rise

Halifax-based Chorus Aviation Ltd. (CHR-T) jumped on Monday in the wake of announcing a deal with Air Canada (AC-T) that will see its Jazz Aviation subsidiary become the sole operator of Air Canada Express flights.

The change means Air Canada will transfer operation of its Embraer E175 fleet to Jazz from Sky Regional.

Air Canada says it is consolidating its regional flying with Jazz due to the pandemic and the need to reduce costs.

The changes to the capacity purchase agreement with Jazz are subject to Jazz reaching an agreement with the Air Line Pilots Association, International.

Air Canada says as a result of the changes to the capacity purchase agreement and consolidation of regional flying, the airline expects to save $400-million over the 15-year term of the agreement.

In addition, the new agreement will lower future contractual capital expenditure and leasing costs, avoiding an estimated $193-million in future capital expenditures.

CAE Inc. (CAE-T) soared after announcing it will buy L3Harris Technologies Inc.’s (LHX-N) military training division for US$1.05-billion to boost its defence business at a time of low demand for flight simulators from airlines in a pandemic-battered industry.

The deal, announced on Monday, broadens the company’s position in simulation and is expected to augment the development of training systems for fighter and bomber aircraft, submarines and remotely piloted aircraft.

“It (the deal) accelerates our growth strategy in Defence and Security and is highly complementary to our core military training business,” CAE Chief Executive Officer Marc Parent said in a statement.

The world’s largest civil aviation training company expects the deal to add to earnings in the first full year after closing and projected annual cost savings of about $35-million to $45-million after the second year.

CAE, which produces flight simulators for Boeing Co and Airbus, posted a 50-per-cent slump in third-quarter profit but expects to see an uptick in training contracts as more people resume air travel following vaccinations.

Sprott Inc. (SII-T) was higher on the renewal of its normal course issuer bid.

The Toronto-based alternative asset management company purchase for cancellation up to 642,576 common shares, or 2.5 per cent of outstanding shares.

Johnson & Johnson (JNJ-N) rose as it began shipping its single-dose shot vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.

A U.S. Centers for Disease Control and Prevention advisory panel voted on Sunday to recommend its COVID-19 shot for widespread use, a final clearance for the vaccine after it was authorized by U.S. regulators on Saturday.

State and local public health authorities will use Food and Drug Administration and CDC guidance as they administer the first 4 million doses. The federal government, through distribution partner McKesson Corp, plans to ship the first shots Sunday night or Monday morning

The Advisory Committee on Immunization Practices (ACIP) has played a major role in guiding states on how to allocate scarce doses, though states themselves have the final say in how they allocate shots.

One of the panelists noted during a presentation on Sunday that there are not yet any studies comparing J&J’s vaccine directly to the other approved vaccines from Pfzier-BioNTech (PFE-N) and Moderna Inc. (MRNA-Q) but that all vaccines were highly effective at reducing hospitalizations and deaths.

See also: Federal government hopes to begin receiving doses of AstraZeneca’s COVID-19 vaccine this week

Berkshire Hathaway Inc. (BRK.N-T) was up after the weekend release of its quarterly results and chairman Warren Buffett’s annual letter to investors.

See also: Buffett upbeat on U.S. and Berkshire, buys back stock even as pandemic hits results

Boeing Co. (BA-N) jumped after United Airlines Holdings Inc. (UAL-Q) ordered 25 new 737 MAX aircraft for delivery in 2023.

The airline also moved up the delivery of 40 previously ordered MAX aircraft to 2022 and 5 to 2023.

“With a number of our aircraft nearing the end of their lifecycle and the growth opportunities that we know will exist in the COVID-19 recovery period, this agreement will help us to grow as demand returns,” Chief Commercial Officer Andrew Nocella said in a memo.

The accelerated global rollout of COVID-19 vaccines has fueled hopes of an economic rebound and an uptick in travel demand.

The 737 MAX was grounded in March 2019 after two deadly crashes. Regulators in the United States, Europe and Britain are among those who have approved the jet’s return to flight.

With files from staff and wires