Stocks Take Dive

Lundin, Silvercorp Bruised

Stocks in Canada’s largest centre followed their American cousins on the downward elevator, as resource and utilities far overcame strength in health-care issues.

The TSX Monday tumbled 164.68 points, or 1%, to close Monday at 16,274.07.

The Canadian dollar swooned 0.05 cents to 75.82 cents U.S.

Gold stocks took it on the chin, particularly, Lundin Gold, descending 60 cents or 4.8%, to $11.81, while Torex Gold faded 77 cents, or 3.7%, to $20.07.

Among other resource stocks, Silvercorp Metals deducted 44 cents, or 4.4%, to $9.65, while MAG Silver docked 51 cents, or 22%, to $22.76.

Utilities were also hit, as Northland Power let go of $1.17, or 2.6%, to $43.51, while ATCO doffed 98 cents, or 2.5%, to $38.63.

Health-care stocks tried to keep the gloom from being unanimous, with Aurora Cannabis climbing 76 cents, or 14.3%, to $6.08, while Canopy Growth grew $2.34, or 10%, to $25.81.

On the economic beat, Statistics Canada reported wholesale sales grew for a fourth consecutive month in August, though at a much slower pace compared with the previous three months.

Sales edged up 0.3% to $65.7 billion in August after growing 5.2% in July.


The TSX Venture Exchange slumped 7.5 points, or 1%, to 717.81.

All but one of the 12 TSX subgroups were lower on the day, with gold settling 1.5%, while materials and utilities were off 1.1%.

Only health-care held out against the negative tide, gaining 3.5%.


Stocks fell sharply on Monday ahead of a key deadline set by House Speaker Nancy Pelosi for new coronavirus stimulus before the election while Covid-19 cases rise.

The Dow Jones Industrials plummeted 410.89 points, or 1.4%, to close Monday at 28,195.42.

The S&P 500 slumped 56.89 points, or 1.6%, to 3,426.92.

The NASDAQ slouched 192.67 points, or 1.7%, to 11,478.88.

Amazon, Alphabet and Microsoft were all down at least 2% to lead the decline along with Facebook and Apple. All 11 S&P 500 sectors fell on the day, with health care and communication services as the worst performers.

Pelosi gave the Trump administration on Sunday 48 hours to reach an aid deal before the Nov. 3 election. Pelosi and Treasury Secretary Steven Mnuchin were also slated to speak Monday afternoon.

However, The Washington Post reported, citing sources, that a deal between Pelosi and the administration was not “sounding imminent.” The news sent the major averages to their lows of the day.

A continued economic recovery in China also boosted sentiment on Monday. The world’s second largest economy reported third-quarter Gross Domestic Product growth of 4.9%, which was on the low end of expectations, but indicates an improving outlook.

Meanwhile, global coronavirus cases hit 40 million on Monday, which put a damper on bullish sentiment.

An analysis of Johns Hopkins University data showed Covid-19 cases were growing by 5% or more in 38 states as of Friday. Nationwide, the daily case average has risen by more than 16% on a week-over-week basis to nearly 55,000. New coronavirus infections in Europe are rising by about 97,000 per day, up 44% from the prior week.

Prices for the 10-Year Treasury lost ground, lifting yields to 0.76% from Friday’s 0.75%. Treasury prices and yields move in opposite directions.

Oil prices subtracted 31 cents at $40.57 U.S. a barrel.

Gold prices fell $2.70 to $1,903.70