Stocks Take Bruises Monday

TC, Shopify in Focus

Equities in Canada’s largest market fell sharply on Monday as fell on Monday as an increase in COVID-19 cases raised fears of a second round of lockdowns, while oil prices fell on the possible return of Libyan oil production.

The TSX plunged 374.67 points, or 2.3%, to greet noon at 15,824.30.

The Canadian dollar fell 0.64 cents to 75.12 cents U.S.

Ontario is cracking down on private social gatherings as COVID-19 cases surge, Premier Doug Ford said in a surprise news conference on
Saturday.

TC Energy Corp said on Monday Chief Operating Officer François Poirier will take over as its president and chief executive officer after current boss Russ Girling retires at the end of this year. Its shares were down $1.50, or 2.5% in early trading, to $58.97.

The largest percentage gainers on the TSX were Shopify, rising 89 cents to $1,109.89, and Cominar REIT, increasing 17 cents, or 2.3%, to $7.47.

Vermilion Energy fell 27 cents, or 6.7%, the most on the TSX, to $3.75, while the second-biggest decliner was MEG Energy Corp , down 17 cents, or 5.7%, to $2.83.

Statistics Canada said its new housing price index increased for the fourth consecutive month, rising 0.5% nationally in August, the largest monthly increase for new home prices at the national level since May 2017.

ON BAYSTREET

The TSX Venture Exchange dropped 29.39 points, or 3.9%, to 715.98.

All 12 TSX subgroups were negative, with energy sliding 4.4%, consumer discretionary dwindled 3.6%, and health-care sank 3.5%.

ON WALLSTREET

Stocks swooned on Monday as fears about the worsening coronavirus as well as uncertainty on further fiscal stimulus rattled traders.

The Dow Jones Industrial Average slid 815.02 points, or 3%, to 26,842.40. Monday’s decline put the Dow on pace for its worst day since June 11, when it plunged more than 6%.

The S&P 500 dipped 72.73 points, or 2.2%, to 3,246.74.

The NASDAQ ditched 160.09 points, or 1.5%, to 10,633.19.

The S&P 500 is down more than 7% in September and the Dow has lost 6%. The NASDAQ has tumbled 10.3% month to date and has re-entered correction territory.

Concerns over another wave of coronavirus cases came as the U.K. reportedly considers another national lockdown to stop an increase in coronavirus infections.

Here in the U.S., stocks that would be hit hardest from another lockdown declined. Share of Carnival Corp. were off by 6.9%. Southwest Airlines lurched lower 7.1%, and Delta Air Lines fell 8.9%.

In Washington, negotiations for a new coronavirus stimulus bill could become more complicated after the passing of Supreme Court Justice Ruth Bader Ginsburg, which could lead to a bitter nomination process ahead of the election. Trump said he would nominate someone this week to take Ginsburg’s seat. Republicans and Democrats have been in a stalemate since July after provisions from the previous stimulus bill expired.

Technology shares — which led the broader market off its coronavirus lows and into record territory, but have been hit hard so far in September — struggled once again. Apple, Microsoft and Amazon were all off by at least 1.6%. For the month, Apple was down 18% and Microsoft lost 12.5%. Amazon has dropped 16.3%.

Bank stocks also contributed to the broader market drop after a report that found a number of global banks allegedly moved illicit funds. Shares of Deutsche Bank dropped 8.3%, while JPMorgan Chase fell 2.8%.

Meanwhile, tensions between the U.S. and China keep escalating. China’s Ministry of Commerce released long-awaited provisions on its so-called "unreliable entity list," a day after the U.S. announced a ban on WeChat and TikTok.

Prices for the 10-Year Treasury fell, raising yields to 0.66% from Friday’s 0.67%. Treasury prices and yields move in opposite directions.

Oil prices subtracted $2.26 to $38.85 U.S. a barrel.

Gold prices sank $63.30 to $1,915.80 U.S. an ounce.