TSX off Slightly at Open

Burcon, Cogeco in Focus

Canada's main stocks index treaded water at the open on Wednesday, as resources-linked gains were seen providing little support amid growing recession fears.

The S&P/TSX lost 16.47 points to open Wednesday to 19,206.27.

The Canadian dollar tailed off 0.07 cents to 77.62 cents U.S.

Exxon Mobil and Canadian partner Imperial Oil said on Tuesday they would sell their Montney and Duvernay assets in Canada to Whitecap Resources for $1.9 billion.

Meanwhile, National Bank raised the price target on Whitecap to $22.00 from $20.00.

Imperial shares inched ahead a nickel to $63.59, while those for Whitecap dropped 24 cents, or 2.5%, to $9.51.

Canaccord Genuity cut the rating on Burcon Nutrascience to speculative buy from buy. Burcon gained two cents, or 4%, to 52 cents.

CIBC cut the rating on Cogeco Communications to neutral from outperform. Cogeco shares dumped $1.77, or 1.9%, to $89.75.


The TSX Venture Exchange handed back 1.11 points to 643.80.

Eight of the 12 TSX subgroups were in the minus column to start the day, with health-care withering 2.4%, information technology falling 1.2%, and consumer discretionary shares off 0.6%.

The four gainers were led by gold, up 1.3%, energy, rumbling 0.6%, and materials, ahead 0.4%.


The Dow Jones Industrial Average rose on Wednesday, after the major averages made a failed attempt at a bounce in the previous session, and as the market prepares to close out the worst first half of the year since 1970.

The 30-stock index gained 170.21 points to 31,117.20.

The S&P 500 added 10.79 points to 3,832.34.

The NASDAQ Composite took on 33.18 points to 11,214.72.

Investors are still searching for the bottom of a vicious market selloff as the second quarter comes to an end Thursday. Concern over a slowing economy and aggressive rate hikes consumed much of the first half of 2022, and fears of a recession fears are rising.

The S&P 500, which is down about 20% in 2022, is on pace for its worst first half of the year since 1970, when the index lost 21.01%.

Meanwhile, on a quarterly basis, both the Dow and S&P 500 are on track for their worst performance since 2020. The NASDAQ is headed toward its worst three-month period since 2008.

In early trading Wednesday, Carnival slid 9% after Morgan Stanley cut its price target on the stock in half and said it could potentially go to zero in the face of another demand shock. The call dragged other cruise stocks lower. Royal Caribbean lost 5.6%, and Norwegian Cruise Line Holdings fell 5.4%.

Bed Bath & Beyond shares plummeted more than 20% after the company posted a huge miss on quarterly earnings and revenue expectations and announced its CEO is stepping down.

Meanwhile, Pinterest shares jumped 3% on news that CEO Ben Silbermann is stepping down.

General Mills shares rose 3% after the company topped earnings and revenue forecasts for its most recent quarter.

On Wednesday Federal Reserve Bank of Cleveland President Loretta Mester said she will advocate for a 75-basis-point hike to interest rates at the central bank’s July meeting if economic conditions remain the same by then.

Investors are also looking ahead to comments from Federal Reserve Chairman Jerome Powell at a European Central Bank forum.

Treasury prices regained some strength, lowering yields to 3.15% from Tuesday’s 3.19%. Treasury prices and yields move in opposite directions.

Oil prices jumped $1.74 to $113.50 U.S. a barrel.

Gold prices retreated two dollars to $1,819.20 U.S. an ounce.