Stocks responded Wednesday to unfavourable vibes from the Bank of Canada, and dumped some of their newfound gains from the past few days.
TSX Composite index stumbled 123.41 points to close Wednesday at 20,147.24
The Canadian dollar forged ahead 0.09 cents to 79.95 cents U.S.
Health-care weighed heaviest on the market Wednesday, with cannabis stocks faring the worst. Aurora Cannabis turfed $1.08, or 10.3%, to $9.39, while Organigram Holdings sank 37 cents, or 10.6%, to $3.31.
In the energy field, Crescent Point Energy dipped 25 cents, or 5.1%, to $4.66, while Cenovus Energy lost 55 cents, or 4.9%, to $10.79.
Among techs, Hut 8 Mining slipped 30 cents, or 5.3%, to $5.33, while BlackBerry moved earthward 56 cents, or 4%, to $13.32.
Gold and other resources moved north, with OceanaGold hiking 11 cents, or 4.9%, to $2.38, while Centerra Gold hiked 35 cents, or 3.8%, to $9.48.
Stelco Holdings moved upward 47 cents, or 1.3%, to $37.45, while Wheaton Precious Metals gained 41 cents, or 1.3%, to $37.45.
In real-estate, CAPREIT spiked 69 cents, or 1.1%, to $61.86, while Interrent REIT moved ahead 29 cents, or 1.6%, to $18.24.
The Bank of Canada announced it is cutting its expectations for economic growth this year as it keeps its key interest rate target on hold at 0.25%.
The central bank says it expects the economy to grow 6% in 2021, down from its previous forecast of 6.5%.
Elsewhere on the economic front, Statistics Canada reported manufacturing sales declined 0.6% in May, on lower sales in 11 of 21 industries led by the machinery, chemical and fabricated metal product industries.
ON BAYSTREET
The TSX Venture Exchange stepped backward 3.8 points to 937.82.
Eight of the 12 TSX subgroups lost ground on the day, weighed most heavily by health-care, tanking 5.1%, while energy stocks were 2.8% less energetic, and information technology fell 1.3%.
The four gainers were led by gold, up 0.9%, while real-estate and materials accumulated 0.2% each.
ON WALLSTREET
The S&P 500 closed slightly higher after Federal Reserve Chairman Jerome Powell said the central bank will maintain its easy monetary policies.
The Dow Jones Industrials gathered 44.44 points to end the session at 34,933.23
The S&P 500 gained 5.09 points to 4,374.30.
The NASDAQ dumped 32.7 points to 14,644.95.
The S&P 500 is up more than 16% in 2021 and more than 37% in the past 12 months, signaling good news might be priced into shares. S&P 500 profit growth is expected to total 64% year-over-year for the quarter.
Apple shares gained 2.4% after the company reportedly asked suppliers to ramp up production of its next-generation iPhones by 20%. JPMorgan also added the tech giant to its focus list and raised its price target on the stock to imply 20% potential upside from Tuesday’s close.
Second-quarter earnings reports from big banks and other major companies continued on Wednesday.
Bank of America shares fell after it reported second-quarter revenue of $21.6 billion, just under the $21.8 billion estimate from Refinitiv. Low interest rates knocked net interest income by 6%.
Meanwhile, American Airlines shares jumped after the carrier forecast better revenue and a narrower loss than its previous estimate for the second quarter. The company is set to report quarterly fiscal results on July 22.
Powell said in his semi-annual testimony before Congress Wednesday that the central bank can wait before it starts to ease its bond purchases despite surging inflation readings. Powell said he still expects inflation to moderate.
The central bank chief is speaking before the House Committee on Financial Services. He is scheduled to testify before the Senate on Thursday.
Prices for 10-Year Treasurys gained, lowering yields to Tuesday’s 1.35%. Treasury prices and yields move in opposite directions.
Oil prices dropped $2.51 to $72.74 U.S. a barrel.
Gold prices jumped $18.60 to $1,822.30 U.S. an ounce.
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