Stocks Bruised in First Hour

Fortuna, Mainstreet in Focus

Fortuna, Mainstreet in Focus

Equities in Canada’s largest centre fell on Wednesday, weighed by energy stocks as a surge in U.S. crude stockpile and rising coronavirus cases in the United States and Europe raised fears of a supply glut and weaker fuel demand.

The TSX plunged 268.86 points, or 1.7%, to open Wednesday at 15,752.08.

The Canadian dollar docked 0.54 cents at 75.27 cents U.S.

Cormark Securities raised the target on Airboss of America to $34.00 from $32.00. Airboss shares removed $1.05, or 5.5%, to $18.10.

Canaccord Genuity initiated coverage on Mainstreet Equity with a buy rating and price target $91.00. Mainstreet started Wednesday at $65.00.

RBC raises target price on West Fraser Timber to $90.00 from $85.00. West Fraser shares lost 56 cents to $62.49.

Fortuna Silver Mines fell 76 cents, or 8%, the most on the TSX, to $8.74, while Teranga Gold slumped 84 cents, or 5.6%, to $14.25.

The largest percentage gainer on the TSX was Firstservice Corp, which jumped $6.53, or 3.9%, to $175.15, but Celestica, gave up early gains and stumbled, 67 cents, or 7.6%, to $8.12, despite both companies posting upbeat third-quarter results.

On the economic front, the Bank of Canada held its overnight lending rate Wednesday at 0.25%. The central bank added it sees inflation below a 2% target through 2022.

ON BAYSTREET

The TSX Venture Exchange dipped 20.63 points, or 2.9%, to hobble through Wednesday’s first hour at 687.47.

All 12 TSX subgroups were in the red to begin the session, with gold dulling in price 4%, energy off 3.8%, and materials down 3.7%.

ON WALLSTREET

U.S. stocks fell sharply on Wednesday, following their European counterparts, as investors worried that the latest increase in coronavirus infections could halt the global economic recovery.

The Dow Jones Industrials fell without a parachute, losing 714.12 points, or 2.6%, to 26,749.07

The S&P 500 doffed 90.98 points, or 2.7%, to 3,299.70,

The NASDAQ tumbled 335.14 points, or 2.9%, to 11,096.21.

U.S. coronavirus cases have risen by a record daily average of 71,832 over the past week, data compiled by Johns Hopkins University showed. Meanwhile, coronavirus-related hospitalizations are up 5% or more in 36 states, according to data from the Covid Tracking Project.

Stocks that would be hurt most by lockdowns or a slowdown in the economy reopening were hit in pre-market trading. Shares of Delta Air Lines fell 2%. Royal Caribbean shares lost 3.9%.

Wall Street also pored through the latest batch of corporate earnings for the previous quarter, including those of tech giant Microsoft.
Microsoft reported better-than-expected earnings and revenue for the previous quarter as sales from its cloud business grew sharply. However, the stock dipped 2.7% on light revenue guidance.

Boeing reported a quarterly loss that’s narrower than expected, but the company said it plans to cut thousands of additional jobs through 2021 as it adjusts to the long-term drop in air travel demand.

Shares of General Electric gained more than 7% Wednesday after the company reported stronger than forecast revenues and a surprise adjusted profit for the third quarter.

First Solar also posted quarterly numbers that beat analyst expectations, sending its shares up about 10% after the bell.

Prices for the 10-Year Treasury gained, lowering yields to 0.76% from Tuesday’s 0.78%. Treasury prices and yields move in opposite directions.

Oil prices shed $2.29 at $37.28 U.S. a barrel.

Gold prices slouched $36.40 to $1,875.50