TSX Backs off from All-time Highs

The TSX Composite Index slid 10.58 points as morning became afternoon Monday to 23,558.07.

The Canadian dollar dipped 0.13 cents to 73.52 cents U.S.

In corporate news, Air Canada on Sunday reached a tentative last-minute deal with its pilots’ union over a new four-year collective agreement, ending a standoff over pay and benefits, thus averting a near-term strike or lockout. Shares in “The Maple Leaf Airline” had lift of 57 cents, or 3.6%, midday Monday to $16.42.

Bausch Health Companies jumped $2.60, or 12.2% to $23.86, after reports of unit Bausch + Lomb exploring sale options.

On the economic docket, motor vehicle sales rang in at 169,000 for July, compared to 166,000 in the prior-year month.

Manufacturing sales rose 1.4% in July, mainly on higher sales of petroleum and coal, and chemical products. The gains were partially offset by lower sales of wood products. Also, the Canadian Real Estate Association reported home sales recorded over Canadian MLS Systems edged up by 1.3% on a month-over-month basis in August, reaching their highest level since January and their second highest in over a year.

ON BAYSTREET

The TSX Venture Exchange slid 5.4 points to 575.03.

The 12 TSX subgroups were evenly divided, with health-care up 0.6%, information technology grabbing 0.5%, and consumer discretionary stocks inching u 0.3%.

The half-dozen laggards were weighed most by gold, down 1.1%, materials, sliding 0.9%, and real-estate, off 0.7%.

ON WALLSTREET

The S&P 500 inched lower Monday as investors await the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020. Meanwhile, the Dow Jones Industrial Average rose to a new all-time high.

The 30-stock index jumped 94.19 points to a new high of 41,487.97

The much broader index lopped off 4.73 points to 5,611.29

The NASDAQ stumbled 175.87 points, or 1%, to 17,508.11.

The S&P 500 is less than 1% away from its July record and could notch a new all-time high this week. After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green, with the S&P 500 and NASDAQ just closing their best week of 2024.

Apple shares declined more than 2% after analysts at firms, including Bank of America and JPMorgan, noted that shipping times could point to lighter demand for iPhone 16 Pro models than the prior year.

Chip stocks like Nvidia, which led the market comeback last week, were lower as investors took off some of their bets. The AI giant lost 2% Monday. Broadcom fell nearly 4%, while KLA and Marvell Technology dropped 1.8%.

The Fed is set to meet on Tuesday and Wednesday and are widely anticipated to make its first interest rate cut since it began hiking rates in March 2022. A cut this week would be a pivotal move, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth — boosting economic growth.

Prices for the 10-year Treasury regained strength, lowering yields to 3.63% from Friday’s 3.64%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.07 to $69.72 U.S. a barrel.

Gold prices lost $2.90 to $2,607.80.