Equities in Canada’s largest centre thundered lower, as the misfortunes of some financial stocks – especially Home Capital Group – made their presence felt.
The S&P/TSX Composite Index dropped 95.65 points to close Wednesday at 15,649.54
The Canadian dollar fell 0.22 cents at 73.45 cents U.S.
Home Capital fell $11.10, or 65%, to $5.99, after the alternative lender said it would secure a $2-billion credit line to shore up its shrinking balance sheet.
Elsewhere among financials, TD shed $1.03, or 1.5%, to conclude business at $65.77
In the real-estate sector, Brookfield Asset Management shares were unchanged at $50.19.
Industrials were negative by day’s end, with Canadian Pacific Railway reversing $2.27, or 1.1%, to $207.72, and Uni-Select moving downward 36 cents, or 1%, to $36.22.
Telecom stocks, however, had a field day, with BCE climbing $1.03, or 1.7%, to $62.70, while TELUS gained 55 cents, or 1.2%, to $45.35.
In consumer staples, Metro Inc. jumped $1.03, or 2.3%, to $46.21, while Loblaw leaped 95 cents, or 1.3%, to $75.70.
Teck Resources advanced 13 cents to $28.97 after it said it would double its dividend payout. Agrium Inc. took on 79 cents to $126.40
On matters macroeconomic, Statistics Canada reported retail sales declined 0.6% to $47.8 billion in February, this, after a 2.3% increase in January. The agency says sales were down in five of 11 sub-sectors, representing 67% of total retail sales.
ON BAYSTREET
The TSX Venture Exchange improved 2.28 points to 806.67
Seven of the 12 TSX subgroups were positive by the close, with telecoms up 1.3%, while consumer staples and materials each soared 0.8%
The five laggards were led by financials, down 1.2%, real-estate, sliding 1%, and industrials, fading 0.6%.
ON WALLSTREET
U.S. equities struggled to hold gains on Wednesday as investors digested President Donald Trump's outline for tax reform, while earnings season continued.
The Dow Jones Industrial Average sank into the red 20.55 points to end the session at 20.975.57, with United Technologies contributing the most gains and Procter & Gamble sustaining the most losses.
The S&P 500 subtracted 1.14 points to 2,387.47, with real estate leading decliners.
The NASDAQ Composite stepped back from its all-time high, losing 0.27 points to 6,025.23
Earnings season carried on, with PepsiCo, United Technologies, Procter & Gamble and Twitter all posted a better-than-expected profit. Twitter's stock popped $1.15, or 7.8%, to $15.81 U.S. by day’s end
Alaska Air, Boston Beer and Dolby Laboratories were among those firms reporting earnings Wednesday
Figures seem to point to big firms surpassing expectations in the last quarter. Of the 181 S&P 500 components that had reported as of Wednesday, 77% had topped earnings expectations while 67% beat on the top line.
Top White House officials outlined President Donald Trump's tax plan Wednesday, a proposal they said would be the "biggest tax cut" in U.S. history. The proposal slashes the corporate tax rate to 15% from 35%.
The White House added there will be a "one-time tax" on the trillions of dollars held by corporations overseas. However, Treasury Secretary Steven Mnuchin said the rate for that tax has yet to be determined.
Expectations for lower corporate taxes have spurred stocks ever since Trump was elected in November. The S&P has gained 11.6% since the election and was on track to post a weekly gain of nearly 2% on re-ignited hopes around lower taxes.
Moveover, Trump is still facing the threat of a potential government shutdown. Government funding will end Friday unless Congress can agree on at least a temporary funding resolution.
Prices for the benchmark 10-year Treasury note were higher, lowering yields to 2.31% from Tuesday’s 2.33%. Treasury prices and yields move in opposite directions.
Oil prices slumped 26 cents at $49.30 U.S. a barrel
Gold prices gained $4.30 at $1,271.50 U.S. an ounce.
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