MARKET REVIEW. After opening lower, Wall Street was trading in disarray on Monday, worried about the rise in rates on medium- and long-term U.S. Treasuries and their significance to the U.S. economy.
The Toronto Stock Exchange rose on Monday, after being dragged down by losses in the industrial sector
In Toronto, the S&P/TSX took 13 points, or 0.07%, to 18,397 points.
In New York, the S&P 500 was down 20 points, or 0.53%, to 3,885 points.
The Dow Jones was up 17 points, or 0.06%, to 31,511 points.
The Nasdaq dropped 229 points, or 1.66%, to 13,644 points.
The 10-year rate on Treasury Bills moved to 1.3381% (+ 0.13%) after reaching a peak overnight from Sunday to Monday at 1.3925%, a high in one year.
The 30-year bond yield was also up, to 2.1350% (+ 0.07%).
“The sustained pace at which benchmark bond rates are moving is starting to cause some nervousness,” commented Patrick O’Hare of Briefing.com.
“This undoubtedly reflects a more optimistic view of the economic outlook, but it also reflects the strengthening of expectations around inflation”, adds the expert.
The S&P 500 and Nasdaq had already posted weekly losses last week, falling 1.50% and 0.71% respectively.
The index with a strong technological coloring of the New York market suffered more than its rivals Monday morning, in particular penalized by the difficult start of the session of stock market giants like Apple (-2,28 %), Amazon (-1,60 %), Alphabet (-1.18%) or even Tesla (-4,48 %).
Investors’ eyes were also on the action Boeing, which rose 0.57%. The aircraft manufacturer has ordered the grounding of all Boeing 777 commercial planes, equipped with the engine model involved in the spectacular engine fire on an aircraft over Colorado on Saturday, that is, 128 aircraft.
The company United Airlines, victim of the incident, had previously stated that he had voluntarily withdrawn 24 Boeing 777s from service. Its share rose 6.47%.
In addition, several listed groups benefited from acquisitions, including the tire manufacturer Cooper Tire (+ 31.51%), which announced its acquisition by its rival Goodyear Tire (+ 25.16%) for 2.8 billion dollars, and the bank People’s United Financial (+ 14.80%), which will be acquired by M&T Bank (+ 3.15%) for $ 7.6 billion.
Among the other values of the day, the video game store chain GameStop, at the heart of the stock market saga at the start of the year and a brief movement of panic on Wall Street at the end of January, saw its share climb by 11.36%.
Ahead of the weekend, Keith Gill, who rose to fame on Reddit and YouTube for betting upside on GameStop stock as many investment funds saw it crash, shared a capture from screen showing that he has acquired an additional 50,000 shares of the company.