Negative Readings Persist for TSX

Converge, Mullen in Focus

Canada's main stock index fell on Wednesday as energy stocks tracked a retreat in oil prices, with sentiment dented further by worries around higher inflation.

The TSX Composite remained in the red 139.32 points to move into noon hour Wednesday at 20,044.11.

The Canadian dollar sank 0.35 cents to 79.11 cents U.S.

Converge Technology Solutions fell 38 cents, or 4.1%, to $9.00, while Mullen Group tumbled 54 cents, or 4%, to $13.02.


The TSX Venture Exchange lost 6.69 points to 860.59

All but three of the 12 TSX subgroups were lower, as energy dumped 2.5%, consumer discretionary stocks wallowed 2.2%, and health-care slipped 1.7%.

The three gainers were information technology, up 0.4%,, gold, up 0.2%, and consumer staples, better by 0.1%.


Stocks declined on Wednesday as October continued its volatility amid concerns about rising rates, higher inflation, the state of the reopening and the debt limit.

The Dow Jones Industrials retreated 250.07 points to 34,064.80, dragged down by a 3% loss in Dow Inc.

The S&P 500 fell 24.77 points to 4,320.95

The NASDAQ Composite came off its lows of the morning, but was still shy of breakeven by 32.53 points, to 14,401.30.

So far in the three prior trading sessions of October, the Dow has gained 483 points, lost 324 points and on Tuesday, jumped 312 points.

The selling on Wednesday was broad-based, with losses in growth names and those tied to the economic recovery.

American Airlines and JetBlue led reopening plays lower, falling 4% each following a downgrade by Goldman Sachs. Goldman cited higher fuel prices and slower near-term demand.

Boeing docked 2%, and General Electric lost 1%. Cruise lines were also lower with Carnival Corp. dipping more than 3%.

Tech shares were also taking hits with Facebook and Apple both lower by more than 1%. Electronic Arts dropped 5% and Seagate Technologies fell 4.5%.

September’s ADP report showed that private companies hired at a faster clip than expected last month, despite worries about the delta variant. Private jobs rose by 568,000 for the month, better than the Dow Jones estimate from economists of 425,000.

Prices for 10-year Treasurys gained ground, lowering yields to 1.51% from Tuesday’s 1.54%. Treasury prices and yields move in opposite directions.

Oil prices dipped $1.45 to $77.48 U.S. a barrel.

Gold prices recovered $1.80 to $1,762.70 U.S. an ounce.