S&P/TSX composite sets new records in longest streak in more than 30 years

TSX on 30-year streak

Canada's main stock index climbed for a 14th straight day to reach a new high Monday in the longest streak of daily gains in more than three decades.

"Energy prices have climbed, interest rates are on the rise and we've seen positive momentum in the labour market, and this is an ideal backdrop for the TSX, which is heavily tilted toward commodity sectors and financials," said Angelo Kourkafas, investment strategist at Edward Jones.

U.S. markets also continued to shine Monday with the Dow Jones industrial average and S&P 500 hitting all-time highs while the Nasdaq also increased on the strength of third-quarter earnings reports.

"It's been a solid start with a little over 20 per cent of the S&P 500 companies having already reported. The numbers look pretty good with above-average beat rates," he said in an interview.

Nearly one-third of S&P companies will report this week with the focus on the five largest tech names: Apple, Amazon, Facebook, Google and Microsoft.

Concerns about labour shortages and supply-chain disruptions haven't yet materialized, but Kourkafas said the banks and companies reporting so far wouldn't be most directly impacted by these issues.

The Bank of Canada is expected on Wednesday to announce a further tapering of its bond purchases to $1 billion a week and update its inflation and growth projections.

Kourkafas doesn't think an expected further cutting back on stimulus will have much of an impact on markets unless the central bank delivers a more hawkish stance than anybody anticipates.

"Inflation has surprised to the upside and also the fact that we have seen positive momentum in the labour market in Canada with total employment back to the pre-pandemic levels, that provides further evidence or some assurance, support to policy-makers that the recovery and the expansion is on track."

The S&P/TSX composite index closed up 68.69 points to 21,284.84 after hitting a record intraday high of 21,307.00

In New York, the Dow Jones industrial average was up 64.13 points at 35,741.15. The S&P 500 index was up 21.58 points at 4,566.48, while the Nasdaq composite was up 136.51 points at 15,226.71.

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