Equities Sink in Late Day Markets

Netflix, Boeing in Focus

Energy stocks proved a heavy weight on indices in Canada Wednesday, with indices also suffering from weakness in industrials and techs.

The TSX slid 43.03 to close Wednesday at 16,230.23.

The Canadian dollar settled 0.09 cents to 76.11 cents U.S.

Health-care led the path upward, with Aurora Cannabis surging 44 cents, or 7.4%, to $6.38, while Bausch Health Companies triumphed 89 cents, or 4%, to $23.21.

Resource stocks also fared well, with First Quantum Minerals climbing 87 cents, or 6.6%, to $14.02, while Hudbay Minerals spiked 40 cents, or 6.3%, to $6.73.

Among golds, Torex Gold took on 63 cents, or 3.2%, to $20.15, while Alamos Gold collected 25 cents, or 2.2%, to $11.20.

Energy stocks suffered, however, with Suncor docking 48 cents, or 3.1%, to $15.18, while MEG Energy lost eight cents, or 2.9%, to $2.39.

Industrials moved backward, especially Ballard Power, down $1.45, or 6.6%, to $20.65, while Canadian National Railways reversed $8.66, or 5.9%, to $138.28.

Techs had a rough day, too, with Shopify clobbered $45.39, or 3.3%, to $1,343.47, while Photon Control lost five cents, or 3.1%, to $1.59.

On the economic calendar, Statistics Canada reported the Consumer Price Index (CPI) rose 0.5% on a year-over-year basis in September, up from a 0.1% increase in August.

On a seasonally-adjusted monthly basis, the CPI rose 0.1% in September, matching the increase in August.

The agency also reported that retail sales rose 0.4% to $53.2 billion in August—the fourth consecutive monthly increase since the record decline in April, led by higher sales at building material and garden equipment and supplies dealers and food and beverage stores.

StatsCan also said prices of new homes surged across the nation by 1.2% in September following a 0.5% increase in August.

ON BAYSTREET

The TSX Venture Exchange dropped 1.46 points to 711.20.

Seven of the 12 TSX subgroups were positive, with health-care stocks shooting 2.5% higher, materials better by 1.7%, and gold, improving 1.3%.

The five laggards were weighed most by energy, down 1.9%, industrials, fading 1.7%, and information technology, off 1.2%.

ON WALLSTREET

Stocks fell slightly on Wednesday as House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued their negotiations on a new fiscal stimulus package.

The Dow Jones Industrials slumped 97.97 points to end Wednesday at 28,210.82.

The S&P 500 faded 7.56 points to 3,435.56.

The NASDAQ slid 31.8 points to 11,484.69.

Pelosi said she hoped both sides can resolve the "appropriations piece" of the coronavirus aid bill later in the day.

Her comments came after White House chief of staff Mark Meadows said Tuesday that Pelosi and Mnuchin have made “good progress” on stimulus talks. He added, however, that they "still have a ways to go" before an agreement is reached.

Netflix shares fell nearly 7% after the company reported disappointing earnings and reported fewer-than-expected subscriber additions. Goldman Sachs and Boeing were the worst-performing Dow members, falling 2.5% and 2%, respectively.

Those declines were somewhat mitigated by a 28.3% jump in Snap shares. The social media company’s stock rallied on the back of on stronger-than-expected results for the previous quarter. Snap’s surge pushed the stock to an all-time high and lifted Facebook,
Twitter and Alphabet.

Facebook closed 4.2% higher and Twitter gained 8.4%. Alphabet shares advanced 2.3%. A Deutsche Bank analyst said in a note that Snap’s results implied a “bonanza for online advertising.”

Prices for the 10-Year Treasury retreated, lifting yields to 0.82% from Tuesday’s 0.79%. Treasury prices and yields move in opposite directions.

Oil prices let go of $1.67 at $40.03 U.S. a barrel.

Gold prices climbed $12.30 to $1,927.70