The close: TSX rises with energy, materials stocks; Cogeco jumps

TMX Group Inc. signage is seen at the Toronto Stock Exchange (TSX) in this file photo. (Pawel Dwulit/Bloomberg)

Canada’s main stock market rose Monday after materials and energy stocks rebounded with oil prices after days of losses.

The S&P/TSX composite index was up 78.12 points, or 0.52 per cent, at 15,105.28.

The Canadian dollar fell 0.16 of a cent to 77.53 cents (U.S.).

Crude oil rebounded. Brent crude futures rose 17 cents to settle at $46.88 a barrel, while U.S. crude futures rose 17 cents to settle at $44.40 a barrel.

Shares of Cogeco Communications Inc. rose 2.7 per cent after the company continued its U.S. acquisition strategy with a $1.8-billion deal to acquire a cable operator serving more than 200,000 Internet, television and home phone customers in five states. Cogeco’s existing U.S. subsidiary Atlantic Broadband will acquire cable systems operating under the brand name MetroCast from Harron Communications Inc. Its rival Shaw Communications fell 0.7 per cent.

Financial stocks gained 0.08 per cent. Canadian Imperial Bank of Commerce has struck a deal to buy Geneva Advisors for up to $200-million (U.S.) ($258-million Canadian), taking another step toward building a renewed presence in the United States. Its shares edge up 0.07 per cent.

Research firm Raymond James upgraded the forestry sector, saying stock prices are ignoring the potential for lower than expected duties as part of a U.S.-Canada sofwood lumber deal. It upgraded Western Forest Products and its stock jumped 4.3 per cent. Interfor Corp. gained 4.9 per cent and Canfor Corp. rose 2.8 per cent.

Air Canada was upgraded again by several research firms and its stock rose 3 per cent.

On Wall Street, the S&P 500 and Nasdaq ended higher on Monday, led by gains in technology stocks on investor optimism ahead of earnings.

The Dow Jones Industrial Average fell 5.82 points, or 0.03 per cent, to 21,408.52, the S&P 500 gained 2.25 points, or 0.09 per cent, to 2,427.43 and the Nasdaq Composite added 23.31 points, or 0.38 per cent, to 6,176.39.

The three major indexes are trading close to record-high levels, boosted by strong economic data and robust corporate performance in the first quarter.

Technology is expected to have had among the strongest earnings growth for the second quarter, according to Thomson Reuters data.

Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey, said investors may be putting money into technology after the group’s recent pullback.

“New money is coming into the market. We typically have new money coming in at the start of a new quarter, and you’ve already had a pullback in tech,” she said.

U.S. companies have begun to report on the second quarter, with reports due this week from big U.S. banks including JPMorgan Chase, Wells Fargo and Citigroup.

In a significant victory for the banking industry, the Federal Reserve late last month approved plans from the 34 largest U.S. banks to use extra capital for stock buybacks, dividends and other purposes.

The healthcare sector was down 0.2 per cent as investors waited for clarity on the healthcare legislation overhaul proposed in Washington.

Markets closed on a high on Friday after a monthly payrolls report exceeded expectations, giving investors more confidence in the strength of the U.S. economy.

Fed Chair Janet Yellen’s semi-annual testimony will be the highlight this week for investors looking for cues on further interest rate hikes. She will testify on Wednesday and Thursday. Inc. shares rose 1.8 per cent to $996.47 ahead of its popular Prime Day shopping festival. Shares of Best Buy fell 6.2 per cent to $54.26 on news that Amazon was planning to roll out a Geek Squad competitor.

Snap Inc. shares fell below their initial public offering price of $17 per share on Monday for the first time, highlighting a lack of confidence in the social media company, which faces fierce competition.

The stock fell as low as $16.95 before closing at $16.99 on New York stock Exchange. Snap was the hottest U.S. technology listing in years when it went public in March.

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