TSX Ends Mini-Streak

BRP, Shopify Bruised

Markets in Toronto finished the day in negative country, as weakness in consumer stocks overwhelmed strength in the energy sector.

The TSX tumbled 135.61 points to finish Wednesday at 16,295.66.

The Canadian dollar squeezed higher 0.11 cents to 75.91 cents U.S.

Consumer discretionary concerns suffered the biggest wounds, as BRP Inc. dwindled $2.90, or 4.1%, to $68.07, while Restaurant Brands International dawdled $2.28, or 3%, to $74.43.

In the tech area, Shopify topped $41.87, or 3.4%, to $1,185.03, while Kinaxis lost $4.74, or 2.5%, to $182.90.

Consumer staples also took losses, with Alimentation Couche-Tard down $1.19, or 2.7%, to $43.17, while Jamieson Wellness skidded 90 cents, or 2.3%, to $37.56.

Energy, however, finished with flying colours, with Vermilion Energy shooting 43 cents higher, or 11.1%, to $4.29, while Crescent Point Energy gushed 13 cents, or 7.2%, to $1.93.

Health-care also flourished with Bausch Health gaining 80 cents, or 3.7%, to $22.26, while Chartwell Retirement Residences ahead eight cents to $10.95.

In the real-estate sector, Brookfield Property Partners raced 53 cents, or 3.5%, to $15.49, while Cominar REIT moved up 31 cents, or 4.3%, to $7.51.

On the economic beat, Statistics Canada’s consumer price index rose 0.1% on a year-over-year basis in August, matching the increase in July. On a seasonally adjusted monthly basis, the CPI rose 0.1% in August, up from a 0.1% decline in July.

Also, foreigners reduced their holdings of Canadian securities by $8.5 billion in July. Meanwhile, Canadian investors acquired $1.3 billion of foreign securities, down considerably from a $10.6 billion investment in June.

ON BAYSTREET

The TSX Venture Exchange added 5.44 points to 747.35.

All but three of the 12 TSX subgroups had crossed over to the negative side by the closing bell, with consumer discretionary issues tumbling 2.5%, while information technology sank 1.8% and consumer staples lost 1.6%.

The three gainers were energy, up 3.5%, health-care, ahead 0.9%, and real-estate, improving 0.6%.

ON WALLSTREET

The Dow Jones Industrial Average eked out a small gain on Wednesday after the Federal Reserve indicated it will keep interest rates lower over the next few years. However, the broader market S&P 500 struggled as shares of major tech companies declined.

The 30-stock index retreated from its dizzy heights of earlier in the day and settled for a gain of 36.78 points to 28,032.38.

The S&P 500 moved lower 15.71 points to 3,385.49. Both the Dow and S&P 500 hit their session highs after the Fed’s announcement was released, but they quickly gave back those gains.

The NASDAQ dropped 139.85 points, or 1.3%, to 11,050.47.

Apple dropped nearly 3%. Facebook ended the day down 3.3% and Amazon slid 2.5%. Netflix also fell more than 2%. Alphabet and Microsoft each closed more than 1% lower. A 1.4% gain in Goldman Sachs helped the Dow close positive for the session.

Members of the Fed’s policymaking committee also indicated the overnight rate could stay near zero through 2023 in order to achieve its 2% inflation goal. "With inflation running persistently below this longer run goal, the Committee will aim to achieve inflation moderately above 2% for some time so that inflation averages 2% over time," the Federal Open Market Committee said in a statement.

Fed Chairman Jerome Powell reiterated the central bank’s approach, telling reporters in a news conference that easy monetary policy will remain in place "until these outcomes, including maximum employment, are achieved."

In corporate news, one of the hottest initial public offerings of 2020 opened for trading on Wednesday. Data storage software company Snowflake surged more than 100% in its public-market debut. The IPO was priced at $120 per share.

Prices for the 10-Year Treasury were lower. raising yields to 0.70% from Tuesday’s 0.68%. Treasury prices and yields move in opposite directions.

Oil prices increased $1.91 to $40.19 U.S. a barrel.

Gold prices dipped 30 cents to $1,965.90 U.S. an ounce.