TORONTO 鈥� sa国际传媒's main stock index ticked lower Monday, weighed down by losses in telecom and utility stocks, while U.S. stock markets rose.
It was a generally quiet day on the markets as investors gear up for a big Wednesday that will see U.S. inflation data released as well as the Bank of sa国际传媒鈥檚 interest rate decision, said Mona Mahajan, senior investment strategist with Edward Jones.
鈥淭here鈥檚 some big news ahead of us,鈥� she said.聽
The S&P/TSX composite index was down 8.59 points at 19,822.45.
In New York, the Dow Jones industrial average was up 209.52 points at 33,944.40. The S&P 500 index was up 10.58 points at 4,409.53, while the Nasdaq composite was up 24.77 points at 13,685.48.
Economic data released in recent weeks has continued to be better than expected, helping support hope for a soft landing, said Mahajan.
This hope may be helping buoy the recent broadening in market strength following a narrow, tech-stock-fuelled rally, she said.
鈥淚 think we're seeing a little bit of a rebound in some of the more lagging sectors ... although, of course, one day doesn鈥檛 make a trend,鈥� she said.聽
Mahajan said investors should expect more economic softness in the back half of the year.聽
鈥淲e would expect as the economy emerges from that, that's really when a true broadening of participation will happen,鈥� she said. 鈥淭hat being said, markets have been quite forward-looking and starting to price in some of that already.鈥�
鈥淥verall, the broadening of participation is a good sign for those who feel like the economic strength has legs,鈥� she said.聽
U.S. earnings season kicks off this week with big banks rolling out their reports on Friday, said Mahajan. Expectations for the quarter are negative, but last quarter earnings surprised to the upside, she noted, which could happen again this year.
The Canadian dollar traded for 75.28 cents US compared with 75.23 cents US on Friday.
China reported flat consumer price inflation in June while producer prices fell, suggesting weakening demand and activity in the world鈥檚 second-largest economy.聽
鈥淭hey鈥檙e one of the few major economies ... cutting rates,鈥� Mahajan said.聽
Oil was down Monday likely in part because of what weakness in China's economy could mean for demand, said Mahajan, but also likely just cooling after its strong rebound last week.聽
The August crude oil contract was down 87 cents at US$72.99 per barrel and the August natural gas contract was up nine cents at US$2.67 per mmBTU.
The August gold contract was down US$1.50 at US$1,931.00 an ounce and the September copper contract was up less than a penny at US$3.78 a pound.
鈥� With files from The Associated Press
This report by The Canadian Press was first published July 10, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The Canadian Press
