The S&P/TSX Composite Index kicked off the week with a triple-digit gain, bucking the North American trend as all major U.S. markets reversed course midway through the trading day to end in the red.

The Canadian index closed 201.17 points higher, or 1.09 per cent, at 18,595.62, in a broad-based rally led by energy stocks. The August contract for benchmark WTI crude rose US$5.01 Monday to settle at US$102.60 a barrel.

U.S. markets erased their early-morning gains to close in negative territory. The S&P 500 lose 0.84 per cent, the Dow fell 0.69 per cent and the Nasdaq was down 0.81 per cent.

Apple was a big drag on U.S. markets after Bloomberg news reported the company plans to slow hiring and spending on certain divisions next year to conserve cash in the face of a potential economic downturn. Shares closed more than two per cent lower and continued to lose ground in afterhours trading.

Colin Cieszynski, chief market strategist at SIA Wealth Management called the reversal of U.S. markets disappointing.

“Generally speaking, it's an indicator to me of conviction, of follow through, of confidence, either on the bullish side, or the bearish side. Do the do the bears have enough confidence to hold the market down through the day? Do the bulls have enough confidence or conviction to hold a market up through the day? And when you do get the see-sawing within the day, it is kind of indicative that nobody's really able to keep control for very long,” he said in an interview on Monday.

Suncor Energy Inc. ended 1.07 per cent higher Monday after it reached an agreement with activist investor Elliott Investment Management.

Under the agreement, Suncor will immediately add three new independent directors to its board and conduct a strategic review of its retail business, which includes roughly 1,500 Petro-Canada stations.

When it comes to the right buyer for Petro-Canada, Ryan Bushell, president and portfolio manager at Newhaven Asset Management, said Canadian players Alimentation Couche-Tard Inc. and Parkland Corporation might run into competition problems should they seek to purchase Suncor’s retail business.

“Couche-Tard, I think, would have a hard time buying certainly the whole network. There would be competition issues, there are concentration issues. And it will be a big bar fight for Parkland,” Bushell said in an interview Monday.

“Similar to the deal that was done a few years ago, where they both took certain assets and certain geographies -- that may be a solution -- but even then, I would imagine there would be competition issues, so I'll be interested to see if a third player or maybe an international player emerges there.”

Bushell added Suncor has “accumulated some baggage” and for a long time, it was a premium-multiple company with “inferior assets,” but he thinks Elliott’s call for change is a good sign for Canada’s energy sector.

“For the industry as a whole, it does show the hidden value within these companies and I think it's a good thing for the Canadian space in general to have an investor like Elliott involved,” Bushell said.

Investors also received the latest round of Wall Street bank earnings Monday.

Shares of Goldman Sachs Group Inc. closed 2.51 per cent higher following second-quarter earnings that beat expectations with strong revenue increases from fixed income, currencies and commodities. 

It’s been a mixed earnings season so far for U.S. banks, with Wells Fargo & Co., JPMorgan Chase & Co. and Morgan Stanley all missing analyst expectations for the quarter, while Citigroup Inc. and Goldman Sachs beat estimates.

The Canadian dollar ended the day higher at 77.06 cents U.S. Monday.

Adam Button, chief currency analyst at Forexlive, said this Friday could be a turning point for the Canadian dollar and energy market if Russia extends annual maintenance for the Nord Stream 1 gas pipeline past the July 12 deadline, which would disrupt European supply.

Adam Button, chief currency analyst at Forexlive, says cheap, reliable energy will keep the world going and Canada can provide that, but global growth is deteriorating and that will put pressure on the loonie.

Button said this would “be the biggest crisis in Europe probably since the end of the Second World War” but Canada could have the chance to step up and fill the energy supply gap.

“The money that will flow to Canada is enormous,” Button said in an interview Monday.

“LNG Canada is probably going to cost $50 billion. We can build three or four more of those and the money will be there I think in the years ahead. It’s just a matter of whether the wheels are there and I think that's coming.”