TSX Continues Downward

Canopy, HUT 8 Mining in Focus

Equities in Toronto left Monday bruised and battered, as a previous rally gave way to negative performances by numerous stocks.

The TSX came off its lows of the day, but still fell short of breakeven by 136.46 points to conclude Monday at 19,974.92,

The Canadian dollar shed 0.27 cents to 76.65 cents U.S.

Cannabis stocks weighed things most heavily, as Canopy Growth sank 64 cents, or 12.9%, to $4.32, while Aurora Cannabis dipped 10 cents, or 5.6%, to $1.87.

Consumer discretionary stocks had a rough go of it, too, as Linamar slid $4.19, or 6.4%, to $61.78, while Magna International dropped $5.04, or 6.2%, to $75.74.

In tech issues, HUT 8 Mining wallowed 24 cents, or 8%, to $2.76, while Converge Technology let go of 41 cents, or 6.2%, to $6.19.

Energy stocks tried to pick up the slack, as Vermilion Energy fired up $1.60, or 4.8%, to $34.71, while Birchcliff Energy hiked 35 cents, or 3.1%, to $11.61.

Gold rose, with Sandstorm Gold acquiring 11 cents, or 1.5%, to $7.65, while Osisko Gold Royalties jumped 15 cents, or 1.2%, to $13.02.

Materials also prospered, primarily, Wheaton Precious Metals, climbing 20 cents to $41.70, while Stelco Holdings jumped 25 cents to $36.33.

On the economic front, Statistics Canada said new home prices for Canada increased 0.1% in July compared with June.

The agency says it was the smallest increase since June 2020 and below the average increases witnessed in the first two quarters of 2022 (+1.1% in the first quarter and +0.3% in the second quarter).

StatsCan concluded prices were up in five of the 27 census metropolitan areas surveyed, unchanged in 17 and down in five.

ON BAYSTREET

The TSX Venture Exchange lost 7.21 points, or 1.1%, to 642.70.

All but three of the 12 TSX subgroups were lower, as health-care subsided 3.3%, while consumer discretionary withered 2%, and information technology lost 1.7%.

The three gainers proved to be energy, better by 0.7%, gold, up 0.3%, and materials, ahead 0.2%.

ON WALLSTREET

The Dow Jones Industrial Average fell sharply Monday, in its worst day since June, as the summer rally fizzled out and fears of aggressive interest rate hikes returned to Wall Street.

The 30-stock index spiraled lower 643.13 points, or 1.9%, to 33,063.61.

The S&P 500 retreated 90.49 points, or 2.1%, to 4,137.99. It was the worst day of trading since June 16 for the Dow and the S&P 500.

The NASDAQ Composite tumbled 323.64 points, or 2.6%, to 12,381.57.

Those losses come on the back of a losing week, that snapped a four-week winning streak for the S&P 500. Still, the broader market index remains 13% above its June lows.

Tech stocks declined on concerns over more aggressive rate hikes from the Fed. Amazon fell 3.6%. Semiconductor stocks dropped with Nvidia down 4.6%. Shares of Netflix were 6.1% lower following a downgrade to sell from CFRA.

Investors are anticipating what could be a volatile week of trading ahead of Federal Reserve Chairman Jerome Powell’s latest comments on inflation at the central bank’s annual Jackson Hole economic symposium.

Treasury prices retreated a bit, raising yields to 3.03% from Friday’s 2.98%. Treasury prices and yields move in opposite direction.

Oil prices inched lower 10 cents to $90.67 U.S. a barrel.

Gold prices fell $14.50 to $1,748.40 U.S. an ounce.