TORONTO 鈥� Canada's main stock index posted a gain Monday, helped by strength in financial stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index closed up 67.10 points at 22,126.13.
In New York, the Dow Jones industrial average was down 31.08 points at 39,344.79. The S&P 500 index was up 5.66 points at 5,572.85, while the Nasdaq composite was up 50.98 points at 18,403.74.
Markets were relatively quiet amid consolidation after last week鈥檚 jobs report in the U.S., said John Zechner, chairman and lead equity manager at J. Zechner Associates.
U.S. equities rose to new records Friday after the latest employment report came in weaker than expected, sparking hope for interest rate cuts.
鈥淓verybody鈥檚 looking forward this week,鈥� said Zechner.
This week will bring comments from U.S. Federal Reserve chair Jerome Powell as he addresses Congress Tuesday and Wednesday. Investors will try to read his comments and tease out any new information on when the central bank could start cutting rates, said Zechner.
鈥淚 think September now seems to be more and more on the table both in Canada and the U.S.,鈥� he said.
However, a weak jobs report last week north of the border has made July more likely for Canada, he added, even though the central bank is wary of moving too quickly.
Investors will also be looking to fresh data on U.S. inflation this week. The core measure of inflation is expected to be flat, said Zechner 鈥� anything less than that will be seen as a positive sign for market watchers hoping a cut is coming soon. He added he doesn鈥檛 think a surprise to the upside is likely for this week鈥檚 inflation report.
The Fed is still looking for more concrete proof that inflation is headed toward its two-per-cent target, said Zechner.
鈥淕oing from nine down to three-and-a-half is pretty good. But they seem to be stalled out in this range now,鈥� he said.
鈥淚t seems no doubt that the next move in interest rates is lower. It鈥檚 just when, and I don鈥檛 think July.鈥�
At the end of the week, earnings season kicks off with several big banks in the U.S. But markets will be anticipating the big tech companies coming later in earnings season, said Zechner: 鈥淭hat鈥檚 where all the marbles are right now.鈥�
The Canadian dollar traded for 73.35 cents US, unchanged from Friday.
The August crude oil contract was down 83 cents at US$82.33 per barrel and the August natural gas contract was up five cents at US$2.37 per mmBTU.
The August gold contract was down US$34.20 at US$2,363.50 an ounce and the September copper contract was down three cents at US$4.62 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published July 8, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
