Canada's main stock index opened higher on Monday, supported by gains in the energy sector after oil prices rose and a jump in Catamaran Corp after UnitedHealth Group Inc agreed to buy the pharmacy-benefit manager.
The S&P/TSX composite index leaped 135.02 points to begin a short week at 14,947.44. Markets are shuttered Friday for Good Friday.
The Canadian dollar skidded 0.8 cents to 79.29 cents U.S.
Health insurer UnitedHealth Group unit OptumRx Corp agreed to buy pharmacy benefit manager Catamaran Corp in a deal worth about $12.8 billion U.S. Catamaran shares popped $15.17, or 24.9%, to $76.01.
Barrick Gold Corp, which last year implemented a new executive compensation plan after an outcry from shareholders, paid Executive Chairman John Thornton $12.9 million U.S. in 2014, a third more than in 2013. Barrick ducked two cents to $14.19.
Canaccord Genuity cut the price target on Calfrac Well Services to $11.00 from $12.00, with a hold rating. Calfrac shares dropped 11 cents, or 11.3%, to $8.52.
Canaccord Genuity also cut the target price on Entrec Corp to $0.60 from $0.70 with a hold rating. Entrec shares dipped half a cent to 42.5 cents
In the economic docket, Statistics Canada reported that its industrial product price index improved 1.8% in February, largely as a result of higher prices for energy and petroleum products.
The agency also said its raw materials price index recovered 6.1% last month, mainly because of higher prices for crude energy products. for February.
ON BAYSTREET
The TSX Venture Exchange nicked up 1.68 points to 683.11
All but two of the 14 Toronto subgroups were higher, led by a 6.9% spike in health-care issues, followed by a 1.1% rise in consumer discretionary stocks. Global base metals strengthened 0.9%.
Gold lost 1.7% and materials retreated 0.7%.
ON WALLSTREET
U.S. stocks rebounded on Monday, encouraged by talks of stimulus in Asia, as investors eyed the week's economic data.
The Dow Jones Industrials rocketed 270.89 points, or 1.5%, to begin Monday at 17,983.55, with UnitedHealth leading gains and Intel the only blue-chip lagging.
The S&P 500 grew 20.97 points, or 1%, to 2,081.99, as energy led gains across all sectors. The NASDAQ added 45.27 points to 4,936.49
UnitedHealth is buying pharmacy benefits manager Catamaran for $12.8 billion U.S. or $61.50 U.S. per share and combining it with its OptumRx unit.
Hyperion Therapeutics is being bought by Ireland's Horizon Pharma for $1.1 billion U.S. in cash or $46 U.S. per share.
Auspex Pharmaceuticals is being bought by Teva for $101 U.S. per share, or $3.2 billion U.S. in cash. Auspex, which went public last year, specializes in treatments for patients with movement disorders and other rare diseases.
Madison Square Garden plans to split into two companies, one to own its sports teams, entertainment productions, and the MSG arena, while the other would distribute the company's sports and entertainment content. MSG had revealed that it was exploring such a move back in October.
Yahoo and Microsoft will extend talks aimed at renegotiating their 10-year search partnership by 30 days. The two had originally struck the partnership in 2010 in hopes of better competing with Google.
Best Buy will consolidate and close stores in Canada, in a move that the electronics retailer said will cost it up to $280 million U.S. in restructuring charges this year.
Personal income in February was mostly in-line with consensus, posting a gain of 0.4%, above expectations of 0.3%. Consumer spending rose 0.1%
Pending homes sales were up 3.1% in February, with gains driven primarily by sales in the West and Midwest.
Prices for 10-year U.S. Treasuries gained a bit of ground, lowering yields to 1.94% from Friday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices gave back a nickel to $48.82 U.S.
Gold prices slid $13.20 to $1,186.60 U.S.
