Energy stocks led the Toronto stock market to a triple-digit drop Wednesday as investors weighed the potential impacts of an NDP majority win in Alberta.
The S&P/TSX composite index slid 150.05 points, or 1%, to close Wednesday at 15,023.89
The Canadian dollar jumped 0.19 cents to 83.05 cents U.S.
The left-wing New Democratic Party beat the Progressive Conservatives in a crushing victory that ended the center-right party's 44-year hold on power in the Western Canadian, oil-producing province.
Experts say investors are reacting to the uncertainty over how an inexperienced government will balance the budget and whether policies affecting the energy sector will change.
Energy stocks led the markets down, with RMP Energy shuttling lower 36 cents, or 10.9%, to $2.93, and NuVista Energy down 79 cents, or 8.8%, to $8.20.
Gold stocks suffered, too, as New Gold lost 17 cents, or 4.1%, to $3.94, while Rubicon Minerals slid seven cents, or 5.2%, to $1.28.
Health-care issues also finished lower, as Extendicare fell 15 cents, or 1.9%, to $7.82.
One of the few bright spots came in the telecom field, as Rogers Communications went skyward $1.81, or 4.3%, to $43.93.
On the economic slate, Western University’s IVEY School of Business released its Purchasing Managers’ Index, which in April stood at 58.2, compared to 54.1 for the corresponding month last year, and 47.9 in March of this year.
The index canvasses purchasing managers as to whether their purchases improved, decreased, or stayed the same each month. A reading over 50 indicates an increase; under 50, a decrease.
ON BAYSTREET
The TSX Venture Exchange moved down 9.75 points to 687
All but three of the 14 Toronto subgroups were negative on the day, as energy doffed 2.8%, gold skidded 2.6%, and health-care was off 1.3%
The thee gainers were telecoms, up 1.4%, consumer staples, up 0.6%, and consumer discretionary stocks, ahead 0.5%.
ON WALLSTREET
U.S. stocks closed lower on Wednesday, reversing a positive open, as investors weighed higher bond yields and oil prices ahead of Friday's important jobs report.
The Dow Jones Industrials went down 86.22 points to 17,841.98, with Microsoft and Intel the greatest laggards and Procter & Gamble leading four advancers.
The S&P 500 index dipped 9.31 points to 2,080.15, with telecommunications leading eight sectors lower and consumer staples the only advancer. Materials closed flat after gaining for most of the day.
The NASDAQ skidded 19.68 points to 4,919.65.
Fed Chair Janet Yellen said on Wednesday morning in a conversation with International Monetary Fund Managing Director Christine Lagarde that equity valuations are generally quite high.
Major earnings due on Wednesday included SodaStream, Wendy's, GlaxoSmithKline before market open.
In corporate news, Cablevision closed up 2.2% after spiking more than 6% on CEO James Dolan's comments that he wants to consolidate the New York market. Later, he told the media that he would talk to Time Warner Cable.
Western Union closed up 4.3% after shares were briefly halted in midday trade. The company said reports that it is in talks to acquire MoneyGram were not accurate.
Major earnings out on Wednesday included SodaStream, Wendy's, GlaxoSmithKline before market open. Activision Blizzard, 21st Century Fox, Tesla Motors, Whole Foods, and Zynga all report after the bell.
GlaxoSmithKline closed up 0.9% after the company reported revenue in line with estimates, but earnings short of forecasts. Glaxo had better than expected results for vaccines and consumer health care, but pharmaceuticals were a drag on profits.
Wendy's closed up 7.2% after reporting earnings of an adjusted six cents per share for its latest quarter, one cent above estimates, though revenue was below forecasts. The fast food chain also announced plans to sell its bakery operations during this quarter, and will refinance its existing debt.
Mylan closed down 2.5% after reporting earnings and an increase in its bid for Perrigo to $34.10 billion U.S. Earnings per share were one cent above estimates, while revenue missed, hurt by the strong dollar. Activity in Mylan's stock has been driven recently by a three-way takeover battle in which it is trying to buy Perrigo while fending off a takeover bid from Teva.
Traders also noted another day of large corporate issuance as investors made room in their portfolios and hedged.
Apple, rated Aa1/AA+, announced on Wednesday a seven-tranche U.S. dollar benchmark bond to finance the repurchase of stock and dividends.
Tuesday marked the eighth busiest day of the year for corporate bond issuance, with AbbVie offering $16.7 billion U.S. Last week, Oracle issued $10 billion U.S. in bonds.
The ADP Employment Report showed 169,000 jobs were created in April, below expectations.
The report, which could foreshadow Friday's employment report, was expected to record a modest rise in the rate of job creation to around 200,000 in April, according to analysts.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.24% from Tuesday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices gained 21 cents to $60.61 U.S.
Gold prices stepped back $2.90 to $1,190.30 U.S.
