TSX Erases Early Losses, Settles Slightly Up

(RTTNews) - The Canadian stock market ended slightly higher on Monday, bouncing back into positive territory after opening on a weak note on global cues.

Weakness in Asian and European markets, disappointing results from Caterpillar and falling crude oil prices amid rising worries about global slowdown set up a weak start for Canadian shares this morning. Energy and industrials shares were the ones that led the market down in early trades.

However, fairly strong buying in healthcare and materials stocks pulled the market out of negative territory and eventually lifted it above the unchanged line.

The benchmark S&P/TSX Composite Index ended up 12.57 points, or 0.08%, at 15,378.62, the day's high. The index fell to a low of 15,276.91 in early trades.

On Friday, the index ended up 85.27 points, or 0.56%, at 15,366.05.

The mood was cautious with investors looking ahead to some crucial economic data from across the globe, the U.S. Federal Reserve's monetary policy statement and corporate earnings reports.

The partial U.S. government shutdown ended on Friday after President Donald Trump agreed to reopen the government despite not receiving the funds he had demanded for building a border wall. However, he has said there will be another shutdown in the event of the lawmakers failing to fund the border wall before February 15.

On the trade front, Chinese Vice Premier Liu He is scheduled to visit the U.S. this week for the next round of negotiations with U.S. officials.

With several stocks from the energy space regaining lost ground on support at lower levels, the Capped Energy Index, which had slipped by more than 2% early on in the session, eventually ended the day with a loss of just 0.63%.

Husky Energy (HSE.TO) ended 2.6% down and Tourmaline Oil Corp. (TOU.TO) declined 2.1% and ARC Resources (ARX.TO) eased by about 1.6%.

The Capped Industrials Index ended down 1.55%. Bombardier Inc. (BBD.B.TO) declined 2.5%. SNC-Lavalin Group shares plunged nearly 28% after the company said that its full year results will be lower than expected due to a serious problem related to a single project in its mining and metallurgy division.

The Capped Healthcare Index gained 4.66%. Canopy Growth Corporation (WEED.TO) gained nearly 5%, Aurora Cannabis (ACB.TO) jumped 6% and Aphria Inc. (APHA.TO) ended stronger by 3.8%. Cronos Group (CRON.TO) soared 16%.

Bausch Health Companies (BHC.TO), Knight Therapeutics (GUD.TO) and Extendicare (EXE.TO) gained 1.4 to 1.8%.

The Capped Telecommunications Index ended 0.7% up. Rogers Communications (RCI.B.TO) and Cineplex Inc. (CGX.TO) ended on a firm note.

Among materials shares, Barrick Gold Corporation (ABX.TO) gained 1.2%, Franco-Nevada Corporation (FNV.TO) jumped 2.6% and Kirkland Lake Gold (KL.TO) ended 3.6% up.

Among bank stocks, Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) gained 0.3 to 0.6%. Canadian Imperial Bank of Commerce (CM.TO) edged up marginally, while Bank of Montreal (BMO.TO) ended lower by about 0.55%.

Fortis Inc. (FTS.TO) announced that it has entered into a definitive agreement with Columbia Power Corporation (CPC) and Columbia Basin Trust (CBT) to sell its 51% interest in the Waneta Expansion Hydroelectric Project in British Columbia for approximately $1 billion. Fortis shares edged up marginally.

The U.S. market ended notably lower, weighed by disappointing earnings news from Caterpillar and Nvidia, and uncertainty about near term. With the Federal Reserve to announce its monetary policy this week and a slew of results due as well, investors were reluctant to pick up stocks.

European markets ended notably lower, weighed down by Brexit uncertainty, some disappointing earnings reports, possibility of another shutdown in the U.S., economic slowdown and weak oil prices. Asian markets too ended weak.

In commodities, crude oil futures for March ended down $1.70, or 3.2%, at $51.99 a barrel.

Gold futures for for February ended up $5.00, or 0.4%, at $1,303.10 an ounce.

Silver futures for March settled at $15.765 an ounce, up $0.066 from previous close. Copper futures for March settled at $2.6800 per pound, down $0.0490 for the session.