A Wednesday Session to Forget

Resource Stocks Take Pounding


Equity markets in Toronto suffered one of their worst one-day clobberings in recent memory, with all sectors reporting losses, in the wake of skyrocketing cases of the coronavirus the world over.

The TSX plunged 434.37 points, or 2.7%, to close Wednesday at 15,586.57.

The Canadian dollar docked 0.72 cents at 75.10 cents U.S.

Resource concerns were hit particularly hard, with B2Gold Corp. sinking 71 cents, or 8%, to $8.19, while Eldorado Gold slid $1.48, or 8.5%, to $15.97.

Fortuna Silver Mines let go of a dollar, or 10.5%, to $8.50, while Silvercorp Metals relinquished $1.03, or 10.7%, to $8.62.

Energy stocks got socked, too, as Vermilion Energy jettisoned 32 cents, or 9%, to $3.23, while Whitecap Resources dumped 16 cents, or 6.4%, to $2.34.

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 30.17 points, or 4.2%, to limp to the finish at 677.93.

All 12 TSX subgroups were down on the day, with gold falling 5.1%, materials down 4.5%, and energy lower by 3.7%.

ON WALLSTREET

U.S. stocks fell sharply on Wednesday amid concerns over the latest increase in coronavirus infections and its potential impact on the global economy.

The Dow Jones Industrials evaporated 926.12 points, or 3.4%, to 26,537.07, posting its fourth straight negative session and its worst day since June 11

The S&P 500 doffed 119.65 points, or 3.5%, to 3,271.03,

The NASDAQ dropped 426.48 points, or 3.7%, to 11,004.87.

The 30-stock Dow has fallen 6.4% this week so far, on pace for its biggest weekly drop since March. The S&P 500 is down 5.6% in this period, also headed for its worst week since March. The tech-heavy NASDAQ has dropped 4.7% this week.

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 the most by lockdowns or a slowdown in the economy reopening led the declines on Wednesday. Shares of United Airlines fell 4.6%. Royal Caribbean shares lost 7.4%, while Norwegian Cruise Line withered 9.1%, and Carnival dropped 10.6%.

Facebook, Alphabet and Twitter were also down sharply as their respective CEOs testified in front of Senate members. Facebook and Alphabet both slid, while Twitter lost 5.3%.

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 5.1% 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. Boeing shares dropped 4.6%.

Shares of General Electric gained 4.5% 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 more than 13%.

Prices for the 10-Year Treasury gained slightly, lowering yields to 0.77% from Tuesday’s 0.78%. Treasury prices and yields move in opposite directions.

Oil prices shed $2.25 at $37.32 U.S. a barrel.

Gold prices dipped $33.60 to $1,878.30