TSX gains lightly on Canada’s election day

US benchmark equity indexes closed mixed Monday as investors eyed a raft of major earnings reports and key economic data due later this week.

The Dow Jones Industrial Average gained 0.3% to 40,227.6, while the S&P 500 added 0.1% to 5,528.8. Both were up for the fifth day in a row. The Nasdaq Composite edged down 0.1% at 17,366.1.

Most sectors advanced, led by utilities and real estate, while technology slipped.

Mega-cap tech companies Apple , Microsoft , Meta Platforms , and Amazon.com are scheduled to report their latest financial results later in the week. Other major names that are due to release financials are McDonald's , Visa , Coca-Cola , Pfizer , and Eli Lilly .

S&P 500 companies' latest quarterly earnings have so far exceeded market expectations, with bottom-line results surging nearly 18% from a year earlier, Oppenheimer Asset Management said Monday. Ahead of the reporting season, Bloomberg's bottom-up estimates put analysts' projected earnings growth at 6.8%.

Microsoft is expected to report better-than-expected fiscal third-quarter results on Wednesday, though its outlook for the ongoing quarter is likely to factor in growing economic uncertainty, Truist Securities said. The stock fell 0.2% on Monday.

Nvidia shares declined 2.1%, the steepest decline on the Dow and among the worst performers on the S&P 500. China's Huawei Technologies is preparing to test its latest artificial intelligence processor that it hopes could replace certain higher-end products of US chipmaking giant, The Wall Street Journal reported Sunday, citing unnamed sources.

US Treasury yields were lower, with the two-year rate falling 7.5 basis points to 3.69% and the 10-year rate decreasing 6 basis points to 4.21%.

This week's key macro reports include an initial reading of US first-quarter economic growth, the personal income and outlays report for March and the official jobs report for April.

The Texas manufacturing sector's contraction worsened this month to its lowest level since May 2020, while uncertainty grew amid potential tariffs impact, data from the Federal Reserve Bank of Dallas showed Monday.

"Texas manufacturing production continued to grow in April, though the future is more uncertain as demand fell and outlooks worsened," Emily Kerr, senior business economist at the Dallas Fed, said. "Many contacts noted turmoil from trade policy."

China on Monday reiterated that there were no trade talks being held between Washington and Beijing, CNBC reported. US Treasury Secretary Scott Bessent previously said "it's up to China to de-escalate" trade tensions, CNBC reported.

Earlier this month, US President Donald Trump announced sweeping new tariffs on imports before declaring a 90-day pause on certain duties for non-retaliating countries. However, the US and China have been in a deadlock over tariffs.

West Texas Intermediate crude oil was down 1.8% at $61.88 a barrel.

"Saudi Arabia may slightly increase its crude prices for Asian buyers in June for the first time in three months," D.A. Davidson said in a client note.

Gold was up 1.9% at $3,361.10 per troy ounce, while silver gained 0.2% to $33.09 per ounce.

US benchmark equity indexes closed mixed on Monday, as investors looked ahead to key earnings reports and economic data later in the week.

The Nasdaq decreased 0.1% to 17,366.13, while the S&P 500 gained less than 0.1% to 5,528.75. The Dow Jones Industrial Average was up 0.3% to 40,227.59. Utilities and real estate sectors posted the highest gains, while technology had the steepest decline.

US Treasury yields were mostly down, with the 10-year rate decreasing 5.6 basis points to 4.21% and the two-year rate dropping 7.5 basis points to 3.69%.

June West Texas Intermediate crude oil decreased 1.8% to $61.90 a barrel on Monday.

This week's key macro reports include an initial reading of US first-quarter economic growth, the personal income and outlays report for March and the official jobs report for April.

In economic news, the Texas manufacturing sector's contraction worsened this month to its lowest level since May 2020, while uncertainty grew amid potential tariffs impact, data from the Federal Reserve Bank of Dallas showed Monday.

"Texas manufacturing production continued to grow in April, though the future is more uncertain as demand fell and outlooks worsened," Emily Kerr, senior business economist at the Dallas Fed, said. "Many contacts noted turmoil from trade policy."

In company news, AbbVie was among the top gainers on the S&P 500, with shares up 3.4%. Raymond James raised its price target on the company's stock to $227 from $220.

Aon shares were up 2.3%. Piper Sandler upgraded its rating on the company's stock to overweight from neutral and adjusted the price target to $378 from $384.

Opera shares surged 6.4% after the internet browser company reported higher adjusted net income and revenue for its Q1 ended March 31 and also raised its guidance for 2025 revenue.

Chipmaking giant Nvidia's shares were down 2.1%, the worst performer on the Dow. China's Huawei Technologies is preparing to test its latest artificial intelligence processor that it hopes could replace certain higher-end products of Nvidia, The Wall Street Journal reported Sunday, citing unnamed sources.

Gold increased 1.9% to $3,361 per troy ounce, while silver was up 0.3% to $33.41 per troy ounce.

By Mackenzie Tatananni

Stocks were mixed on Monday following a pullback in tech stocks, with Wall Street bracing for a busy earnings week. Four of the Magnificent Seven companies — Microsoft, Meta Platforms, Amazon.com, and Apple — are set to report their latest financial results later in the week. Crucial economic data on growth, inflation, and jobs are also due.

These stocks made moves on Monday:

Tesla rose 0.3% to $285.88 to extend its winning streak to five days. Shares of the electric-vehicle maker closed above their 50-day moving average on Friday. Tesla reported earnings on Tuesday evening, and despite a disappointing first-quarter print, the stock rose after CEO Elon Musk said he would spend less time in Washington, D.C., and more time at Tesla headquarters. A positive reaction to earnings has brought $300 into play, said ChartSmarter founder and market technician Douglas Busch, who sees a "decent chance" the stock can rise as high as $360.

Domino's Pizza rose 0.6% on a mixed first-quarter print. The fast-food pizza chain posted revenue of $1.1 billion, narrowly missing the $1.3 billion that analysts expected, according to FactSet. Earnings of $4.33 a share topped the $4.06 a share Wall Street was anticipating. The company didn't provide an outlook for 2025. While inflation and recession fears have caused restaurant stocks to waver as of late, Domino's large international exposure has made it a safer bet than domestically centered U.S. chains.

Nvidia was down 2.1%. Shares fell on a report that Huawei Technologies has developed a new chip called the Ascend 910D, hoping it would be more powerful than Nvidia's H100. The artificial intelligence giant's market in China was already set to shrink after the Trump administration said it would impose license requirements on future sales of its H20 accelerators, which were specifically designed to meet U.S. sanctions on Chinese AI exports. The stock closed up 4.3% on Friday.

Spirit AeroSystems rose 2.6% after finalizing a deal to transfer some of its assets to Airbus. These include a plant in North Carolina where Spirit makes a crucial part of the fuselage for the A350 jet, and a plant in Northern Ireland that makes carbon-fiber wings for the A220.

Airbus said it would also acquire the production of wing components for the A320 and A350 in Scotland. The aerospace and defense company will be compensated $439 million for taking on the production work. U.S.-listed shares of Airbus were up 3.2%.

IBM was up 1.6% after pledging a $150 billion investment over the next five years to aid the development of technology in the U.S. The company said it would invest more than $30 billion in research and development to continue its domestic manufacturing of mainframe and quantum computers.

Regeneron Pharmaceuticals was up 1.4%. The biotech said the European Commission had granted conditional marketing approval of Lynozyfic to treat adults with relapsed and refractory multiple myeloma, a type of blood cancer.

Novavax climbed 0.5% after the vaccine maker released a statement addressing the U.S. Food and Drug Administration's request for Novavax to conduct another clinical trial for its Covid-19 vaccine. So-called postmarketing commitments are "not unusual," and many approved drugs have at least one PMC, the company said.

Wolfspeed stock surged 26% to $4.13 ahead of fiscal third-quarter earnings, which are set to be released next week. Stocks in the semiconductor industry have seen a heightened level of short interest, according to Raymond James. Analysts with the firm noted that Wolfspeed topped the list of stocks with the largest short-interest ratio, at 41%.

MicroStrategy rose 0.2%. The world's largest corporate holder of Bitcoin revealed Monday that it had snapped up even more cryptocurrency. In the period between April 21 and April 27, the company, which does business as Strategy, purchased 15,355 Bitcoins for $1.42 billion, or roughly $92,737 each. The stock followed the market and the price of Bitcoin lower. The digital currency was down 0.7% over the past 24 hours to $93,802, according to CoinDesk data.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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