Negative Trend Continues Monday

Cannabis, Lightspeed Take Worst Beating

The early autumn malaise being experienced by equities continued into Monday, with health and tech stocks weighing markets down.

The TSX Composite fell 98.62 points by Monday’s end to 20,052.25.

The Canadian dollar took on 0.32 cents to 79.50 cents U.S.

Health-care stocks took the biggest pasting of the day, with Tilray swooning 62 cents, or 4.3%, to $13.50, while cannabis competitor Canopy Growth slid 72 cents, or 4.3%, to $16.24.

Among tech stocks, Lightspeed POS collapsed $10.68, while 8.6%, to $113.59, while Nuvei dropped $7.31, or 4.7%, to $146.93.

Industrials also took it on the chin, with SNC Lavalin losing $1.19, or 3.4%, to $33.42, while Ballard Power Systems was weaker $1.10, or 6.2%, to $16.65.

Energy stocks tried to balance things out, with Enerplus moving up 50 cents, or 4.9%, to $10.63, while MEG Energy improved 33 cents, or 3.3%, to $10.22.

In the gold sector, New Gold acquired seven cents, or 5.1%, to $1.45, while NovaGold picked up 32 cents, or 3.7%, to $8.96.

In other resource stocks, Ivanhoe Mines climbed 63 cents, or 7.8%, to $8.73, while Lundin Mining triumphed 26 cents, or 2.9%, to $9.19.

On the economic beat, Statistics Canada said the total value of building permits in Canada decreased 2.1% to $9.7 billion in August.

Although most provinces reported increases, notable declines in Ontario and British Columbia pulled the national results lower compared with July.

ON BAYSTREET

The TSX Venture Exchange dipped 5.72 points to 860.16

All but three of the 12 TSX subgroups were down on the day, with health-care ailing 3.2%, information technology stocks falling 3.1.9%, and industrials off 1.4%.

The three gainers were energy, strengthening 2%, gold, up 0.8%, and materials, improving 0/6%.

ON WALLSTREET

The major averages took steep losses to start the week as investors continued their rotation out of technology stocks amid rising bond yields.

The Dow Jones Industrials lost 323.54 points 34,002.92, despite large gains in Merck.

The S&P 500 dropped 56.58 points, or 1.3%, to 4,300.46

The NASDAQ Composite thundered lower 311.21 points, or 2.1%, to 14,255.49.

Large tech shares like Apple, Nvidia, Amazon and Microsoft were lower as investors eyed bond yields. A surge in rates to end September
knocked highly valued tech stocks.

Social media giant Facebook lost 4.9% after being accused of a "betrayal of democracy" by a whistleblower who revealed her identity on Sunday.

On the positive side, Tesla rose 0.8% after the company said this weekend that it delivered 241,300 electric vehicles during the third quarter, well above analysts estimates.

Merck shares gained 2.1%, following through on an 8% surge on Friday after the drug maker said its oral antiviral treatment developed with Ridgeback Biotherapeutics for COVID-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases.

Southwest rose 1.3% after an upgrade to overweight from equal weight from Barclays. The same analyst upgraded the North American Airlines sector to positive from neutral.

Energy stocks also rose amid an uptick in oil prices. Exxon Mobil gained 1.3% and ConocoPhillips rallied 2%.

Prices for 10-year Treasurys listed lower, raising yields to 1.48% from Friday’s 1.47%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.72 to $77.60 U.S. a barrel.

Gold prices jumped $10.80 to $1,769.20 U.S. an ounce.