Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The TSX, S&P 500 and Dow Jones industrial average ended lower on Monday, with performance in Toronto undermined by a slide in materials and cannabis stocks. Investors awaited cues from the upcoming corporate earnings season and a key inflation report later this week.

The S&P/TSX Composite Index ended down 26.75 points, or 0.14%, at 19,201.28, with the materials sector falling 1.62%. Gold fell as an uptick in U.S. Treasury yields weighed on bullion’s appeal, with U.S. gold futures settling down 0.7% at $1,732.70.

Copper prices also slipped amid worries that top metals consumer China wants to put a lid on surging commodity prices to head off potential inflation. Concern about faltering demand and rising copper inventories also weighed on the market. Benchmark copper on the London Metal Exchange had fallen 0.9% to $8,845 a tonne by late afternoon. Copper has gained about 30% over the past five months, having touched a 9-1/2 year peak of $9,617 in late February. Several copper-focused stocks on the TSX lost ground Monday, including a 6.38% drop in shares of HudBay Minerals.

Story continues below advertisement

It also was a rough day for cannabis investors in Toronto, after Aphria Inc reported a loss for the third quarter as it reeled from fresh coronavirus lockdowns in parts of Canada and Germany, sending its shares down 14.19% and weighing on other pot producers.

On Wall Street, stocks sold off after strong gains in recent days that were driven by a pullback in the benchmark 10-year bond yield from 14-month highs.

With U.S. consumer price data for March due to be published Tuesday, this could drive Treasury yields higher. Big Wall Street names are due to kick off earnings season on Wednesday, giving new catalysts to buy or sell off stocks in a record-high market.

“Investors are now going to pay close attention to earnings season, because this is the time where they are expecting guidance from companies, where valuations start to matter again,” said Ed Moya, senior market analyst at OANDA.

“There’s this nervousness that we’re going to see that we can’t just buy everything, as that was the trade for the last few months.”

Federal Reserve Chair Jerome Powell said on Sunday the U.S. economy was at an “inflection point” with expectations that growth will pick up speed in the months ahead, but he warned that a hasty reopening could lead to a continued increase in coronavirus cases.

S&P 500 earnings are expected to have jumped 25% in the quarter from a year ago, according to Refinitiv IBES data. That would be the biggest quarterly gain since 2018, when tax cuts under former President Donald Trump boosted profit growth.

Story continues below advertisement

Banks are among the first to report earnings for the opening quarter of 2021, with Goldman Sachs, JPMorgan and Wells Fargo due on Wednesday.

The financials index and consumer discretionary sector both hit record highs on Monday, reflecting confidence in both areas as the U.S. economy reopens.

“The optimism is improving now that these banks are going to return to normal, with buybacks and dividends, and because of the outlook for Treasury yields, they are going to have a better outlook going forward,” said OANDA’s Moya.

Among the 11 major S&P 500 sector indexes, communication services and energy shares were the steepest decliners.

Overall, the Dow Jones Industrial Average fell 55.2 points, or 0.16%, to 33,745.4, the S&P 500 lost 0.81 points, or 0.02%, to 4,127.99 and the Nasdaq Composite dropped 50.19 points, or 0.36%, to 13,850.00.

Tesla Inc rose 3.7% after Canaccord Genuity upgraded the electric-car maker’s shares to “buy,” saying the company could become “the brand” in energy storage.

Story continues below advertisement

Nvidia Corp jumped 5.6% after saying Monday it would make a server processor chip that would directly challenge Intel Corp. The chipmaker also signposted above-guidance first-quarter sales.

Nuance Communications Inc shares surged 16% after Microsoft Corp said it would buy the artificial intelligence and speech technology company for $19.7 billion.

In one of the year’s quietest sessions, volume on U.S. exchanges was 9.0 billion shares, versus the 11.6 billion average for the last 20 trading days.

Declining issues outnumbered advancing ones on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favored decliners.

The S&P 500 posted 73 new 52-week highs and no new lows; the Nasdaq Composite recorded 88 new highs and 81 new lows.

With files from Reuters

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies