Stocks Flat at Finish

Stocks in Canada’s largest market struggled to reach and surpass the breakeven point by Wednesday’s close, as investors sought to make what sense they could of moves (or lack of them) by the Bank of Canada

The S&P/TSX Composite Index fought its way to gains of 5.44 points to conclude Wednesday at 16,092.07

The Canadian dollar dropped 0.44 cents at 74.44 cents U.S.

The central bank, as expected, held rates steady at 1.75%, with a majority of analysts anticipating another hike later this year, even as recent data has clouded the outlook and could force a more dovish tone.

The Bank Rate is correspondingly 2% and the deposit rate is 1.5%.

The BoC said there was "increased uncertainty" around the timing of future rate increases as it expects the economy to be weaker in the first half of 2019 than projected in January. What’s more, the central bank made it clear that future rate hike plans are still on the table, but not imminent.

Utilities led among the gaining subgroups, as Hydro One poked up six cents to $20.42, while Fortis rocketed 31 cents to $47.85.

In techs, Shopify picked up 47 cents to $251.39, while Constellation Software acquired seven dollars to $1,157.00

In the communications field, BCE took on 51 cents to $58.86, while Shaw Communications added 23 cents to $27.42.

Health-care ailed, however, as Bausch Health Companies deducted 27 cents to $31.68, and Aurora Cannabis dropped 16 cents, or 1.5%, to $10.64.

Among gold stocks, Barrick Gold dipped 25 cents, or 1.5%, to $16.68, while Kinross Gold lost seven cents, or 1.5%, to $4.27.

Energy stocks also faltered, with Suncor ducking lower 28 cents to $45.15, and Canadian Natural Resources gave back 65 cents, or 1.8%, to $35.80.

Elsewhere on the economic calendar, Statistics Canada reported that Canada's exports declined 3.8% in December, mainly due to lower crude oil prices, while imports were up 1.6%.

As a result, our country's merchandise trade deficit with the world widened from $2.0 billion in November to a record $4.6 billion in December.

Western University’s IVEY School of Business said its Purchasing Managers Index measured 50.6 in February, down sharply from the 54.7 issued in January, and well off the 59.6 level in February 2018

ON BAYSTREET

The TSX Venture Exchange swooned 3.62 points to 619.56

Seven of the 12 TSX subgroups remained higher till the closing bell, with utilities rising 1.2%, while information technology stronger by 1%, and communications surging 0.8%

The five laggards were weighed most by health-care, down 2.1%, gold, slumping 1.6%, and energy, off 1.2%

ON WALLSTREET

Stocks fell on Wednesday, with the major indexes posting their third consecutive decline, as investors took a breather following sharp gains this year. Wall Street also sought further indications that a trade deal between China and the U.S. could be reached in the near future.

The Dow Jones Industrial Average stumbled 133.17 to 25,673.46, as Walgreens Boots Alliance lagged.

The S&P 500 faded 18.2 points to 2,771.45, led by declines in the energy and health-care sectors.

The NASDAQ Composite let go of 70.44 points to 7,579.20, notching its first three-day losing streak of the year.

Health-care stocks in the S&P 500 pulled back more than 1%. Shares of Nektar Therapeutics and HCA Healthcare dragged down the sector, falling more than 4% each.

General Electric shares fell more than 7.5% after J.P. Morgan analyst Stephen Tusa said in a note the company's stock is overvalued given the hurdles it faces over the next two years. Tusa kept his price target at $6 per share, noting that "looks generous" at this time.

Investors also digested key economic data on Wednesday. ADP and Moody's Analytics said private payrolls rose by 183,000 in February.

Economists polled by Dow Jones had forecast a gain of 185,000. January payrolls were revised higher by 87,000 to 300,000.

Meanwhile, the U.S. trade deficit increased to a 10-year high of $59.8 billion despite the administration's efforts to reduce the number.
Economists expected the number to increase to $57.3 billion.

News sources have reported that President Donald Trump wants the U.S. and China to strike a deal in hopes of boosting stock prices ahead of the 2020 election. The sources said Trump thinks getting a deal on trade would accomplish that.

Earlier this week, sources told media outlets the U.S. and China were in the "final stages" of trade talks, with the two sides planning a Mar-a-Lago summit for the end of the month. U.S. Secretary of State Mike Pompeo also said Monday he thought Washington and Beijing were "on the cusp" of reaching a deal.

Prices for the benchmark 10-year U.S. Treasury eked ahead, dropping yields to 2.69% from Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.

Oil prices erased 35 cents to $56.21 U.S. a barrel.

Gold prices gained $3.20 to $1,287.90 U.S. an ounce.


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