Equities in Canada’s largest market opened lower on Wednesday after Bank of Canada Governor Stephen Poloz lifted expectations for further monetary support to help tide the economy through the coronavirus crisis.
The S&P/TSX Composite Index shed 48.49 points to begin Wednesday at 15,099.63.
The Canadian dollar softened 0.17 cents to 72.41 cents U.S.
Bank of Montreal reported quarterly profit below analysts' estimates as it set aside more money to cover potential loan losses stemming from the coronavirus pandemic. BMO gained $1.48, or 2.1%, to $71.67.
National Bank of Canada raised the target price on Bank of Nova Scotia to $56.00 from $53.00. Scotiabank shares galloped $1.97, or 3.5%, to $57.81.
TD Securities cut the target price on Dream Unlimited to $10.50 from $11.00. Dream shares subsided 15 cents, or 1.8%, to $8.40.
TD Securities raised the rating on Uranium Participation to buy from hold. Uranium’s shares tumbled 15 cents, or 2.9%, to $4.98.
National Bank of Canada raised the price target on Vermilion Energy to $8.00 from $6.00. Vermilion shares lost 17 cents, or 2.3%, to $7.30.
The central bank has slashed its key interest rate three times to a record low of 0.25% since the outbreak started and launched its first ever large-scale bond buying program to alleviate stress in financial markets.
ON BAYSTREET
The TSX Venture Exchange dropped 1.41 points to open Wednesday at 537.02.
Eight of the 12 TSX subgroups were negative in the first hour, with gold dulling in price 3%, information technology falling 2.6%, and materials down 2%.
The four gainers were led by consumer discretionary, rebounding 1.8%, financials soaring 1.6%, and communications better by 0.6%.
ON WALLSTREET
Stocks rose for a second day Wednesday on optimism about the reopening of the economy. However, a decline in tech shares kept the gains in check.
The Dow Jones Industrials popped 251.99 points, or 2.2%, to 25,247.10. The 30-stock average traded back above 25,000 and aimed for its first close above that level since March.
The S&P 500 added 11.11 points to 3,002.88. The S&P 500 tech sector dropped more than 1% as Apple shares lost 0.5%. Nvidia shares dropped 5.2% while AMD slid 3.6%.
The NASDAQ dipped 55.15 points to 9,285.08.
Carnival Corp. shares jumped 9.1% while United Airlines added nearly 10%. JPMorgan Chase was up 6% while Citigroup advanced 7.3%.
Stocks that benefited from people staying at home struggled on Wednesday as investors rotated out of those names. Zoom Video fell 5.6%, and Netflix dropped 1.9%. Shopify fell 7.2%, Amazon docked 2.2%, and and Teladoc Health slid 9.8%.
On Wednesday, the Mortgage Bankers Association reported a sixth straight weekly rise in mortgage applications. Data released Tuesday showed new home sales in April topped estimates. Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000, according to Dow Jones.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.68% from Tuesday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.10 to $33.25 U.S. a barrel.
Gold prices slipped $20.80 to $1,707.40 U.S. an ounce.
