TORONTO 鈥� Canada's main stock index closed up more than 100 points Monday led by gains in tech and metals, while U.S. markets also rose.聽
鈥淲hat we're seeing is more optimism around this soft landing narrative,鈥� said Mona Mahajan, senior investment strategist with Edward Jones.聽
With consumers appearing to hold up despite higher interest rates and the labour market remaining strong even as inflation moderates, investors are looking for continuous confirmation that central banks are on the right path.聽
鈥淚'd say there's a little bit of, maybe, fatigue after such a strong run through last week,鈥� Mahajan added, with markets appearing to take a breather on Monday. 聽
The S&P/TSX composite index was up 107.27 points at 20,626.64.
In New York, the Dow Jones industrial average was up 100.24 points at 35,559.53.The S&P 500 index was up 6.73 points at 4,588.96, while the Nasdaq composite was up 29.37 points at 14,346.02.
There鈥檚 more to come for investors this week that could help solidify that optimism, said Mahajan, with earnings results from some of the biggest tech companies, as well as more jobs data.聽
On Friday, investors will get fresh U.S. employment data, after job openings data coming Tuesday. Amazon and Apple are among the big tech companies reporting earnings this week.
So far, the majority of companies reporting earnings for the second quarter have beat expectations, Mahajan said, including the narrow group of tech names that have led the rally so far this year.聽
鈥淭he largest upside surprises are coming from areas like tech and consumer discretionary, where companies are meeting and exceeding expectations,鈥� she said.聽
鈥淲e are seeing, broadly speaking, the companies that have led the rally have also been reporting pretty strong earnings as well.鈥�
While there may be room for some pullback after such a strong year to date, there鈥檚 also an encouraging trend of broadening in the market, said Mahajan, a sign that investors are still looking to get involved in other areas of the economy.
鈥淭hat data has to continue to move in the right direction 鈥� in order for this soft landing narrative to hold up, but for now, earnings and economic data have aligned to really create a more glass-half-full outlook for markets.鈥�
Oil continued its steady upward climb, nearing US$82 a barrel Monday.聽
鈥淚t does seem like from a technical perspective, it鈥檚 broken out of its recent ranges,鈥� said Mahajan.
The September crude oil contract was up $1.22 at US$81.80 per barrel and the September natural gas contract was down less than a penny at US$2.63 per mmBTU.
The 91原创 dollar traded for 75.81 cents US, according to XE.com, compared with 75.57 cents US on Friday.
The December gold contract was up US$9.30 at US$2,009.20 an ounce and the September copper contract was up eight cents at US$4.01 a pound.
This report by The 91原创 Press was first published July 31, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
Rosa Saba, The 91原创 Press
