Stocks Static on Coronavirus Worries

Ballard, Aurora Featured

Canada's main stock index traded flat on Tuesday as Apple's revenue warning underlined the impact of the coronavirus outbreak on global supply and demand, but losses were capped by a recovery in the energy sector.

The TSX Composite Index faded 20.11 points to reach noon at 17,828.25.

The Canadian dollar dropped 0.17 cents to 75.37 cents U.S.

Markets were shuttered Monday for Family Day.

Canadian Natural Resources gave up earlier gains, dropping nine cents to $38.72, while rival Suncor remained north of the breakeven point 19 cents to $39.64.

The largest percentage gainers on the TSX were Ballard Power, which jumped $1.13, or 7.5%, to $16.18, and Aurora Cannabis, which rose 5.5 cents, or 2.7%, to $2.12.

Air Canada fell $1.17, or 2.5%, the most on the TSX, to $45.05, after it missed analysts' estimates for quarterly profit. The second biggest decliner was Interfor, down $1.09, or 6.8%, to $15.00.

On the economic beat, Statistics Canada said Tuesday manufacturing sales declined for the fourth consecutive month, down 0.7% to $56.4 billion in December.

ON BAYSTREET

The TSX Venture Exchange moved up 2.86 points to 573.35.

Still, eight of the 12 TSX subgroups remained positive, with gold hurtling upwards 2.9%, materials stronger 1.4%, and utilities better by 0.9%.

The four laggards were weighed most by consumer discretionary, sliding 1.1%, while industrials and energy each scaled back 0.8%.

ON WALLSTREET

Stocks fell on Tuesday as a forecast warning from tech giant Apple stoked worries over the coronavirus and its impact on corporate profits and the global economy.

The Dow Jones Industrials collapsed 254.82 points to break for lunch to 29,143.26. The index was also on pace for its third day in a row.

The S&P 500 deferred 22.64 points to 3,357.53.

The NASDAQ retreated 46.73 points from Friday’s all-time high, at 9,684.45.

Markets were Monday for the Presidents’ Day holiday.

Apple cautioned it does not expect to meet its quarterly revenue forecast, citing slowed production and weakened demand in China as a result of the coronavirus outbreak. The most valuable company in the U.S. initially said it expected to report net sales between $63 billion to $67 billion in its fiscal second quarter.

The company has not provided an updated forecast for its fiscal second-quarter. Shares of Apple traded 2.5% lower.

Still, Apple’s warning sent shares of some suppliers lower. Skyworks Solutions slid 1.7%, along with Xilinx skidded 1.5%, and Qorvo lost 2.5%.

China’s National Health Commission on Tuesday reported an additional 98 deaths nationwide, with 1,886 new cases of the coronavirus. As of Feb. 17, the commission said there had been a total of 72,346 confirmed cases and 1,868 deaths.

Prices for the 10-Year U.S. Treasury gained ground, lowering yields to 1.54% from Friday’s 1.59%. Treasury prices and yields move in opposite directions.

Oil prices deducted 58 cents to $51.47 U.S. a barrel.

Gold prices jumped $21.30 to $1,607.70 U.S. an ounce.