Canada Stocks Start Holiday Shortened Week With 195 Pts In Gains; Wells Fargo Sees Energy Sector Leading Earnings Growth In Q2

Last Updated: Monday, June 27, 2022 4:05 PM | MT Newswires

Canada's main stock market, the Toronto Stock Exchange, got a holiday shortened week off to a strong start Monday -- markets will be closed here Friday for the Canada Day holiday -- in gaining 195 points, although it was up by more than 200 points inside the last 30 minutes of trade. Still, this adds to the near 345 points gained on Friday, and so, combined, the gains for the last two sessions just about cancel out the total losses over the two days prior to that.

There may be some portfolio balancing going on ahead of Canada Day, and the July 4 holiday in the United States, and then the run in to the next season of quarterly earnings on both sides of the border. Earnings are widely expected to be weaker than in the last quarter, but there is some positivity around the outlook for Energy stocks.

For its part, Wells Fargo Investment Institute (WFII) published Monday this week's Investment Strategy Report in which it said S&P 500 Index earnings are expected to have grown by 5.7% in the second quarter of 2022, after growing by 9% in the first quarter. The Energy sector, it added, is expected to lead growth for the quarter. However, excluding the Energy sector, overall S&P 500 Index earnings likely contracted, it noted.

Among sectors today, Energy gained 3.3%, Materials rose 2% and Financials were up 0.7%.

Of commodities today, gold edged lower along with the dollar as the G7 group of countries moved to ban imports of Russian gold. Gold for August delivery closed down $5.50 to US$1,824.80 per ounce.

But West Texas Intermediate crude oil rose as worries over tight supply more than offset concerns rising interest rates will tip economies into recession. WTI crude for August delivery closed up $1.95 to settle at US$109.57 per barrel, Marketwatch reported. August Brent oil, the global benchmark, was last seen up $1.84 to US$114. 96, while Western Canada Select was up $2.72 to US$92.42 per barrel.

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