Equity markets in Canada’s largest centre scratched their way back toward the breakeven point Thursday, after spending much of the day in the dungeon, though losses in health-care weighed things down, due to worries over the economic fallout from a fast spreading viral outbreak in China.
The TSX Composite Index came off its lows of Thursday, remaining 21.29 points below Wednesday’s close to conclude the session at 17,490.56
The Canadian dollar squeaked ahead 0.05 cents to 75.80 cents U.S.
As mentioned, health-care stocks proved a worry, as Bausch Health Companies retreated $1.02, or 2.6%, to $37.45, while Sienna Senior Living backpedaled 29 cents, or 1.5%, to $19.01.
Consumer discretionary stocks were also in the red, most notably, Spin Master, doffing 68 cents, or 2.1%, to $31.98, while Dollarama slipped 83 cents, or 1.8%, to $46.28.
In materials, Canfor dumped 42 cents, or 3.4%, to $12.11, while First Quantum Minerals stepped back 45 cents, or 3.9%, to $11.03.
On the bright side, utilities more than pulled their weight, with Altagas charging ahead 59 cents, or 2.8%, to $21.74, while Transalta registered 18 cents higher, or 1.9%, to $9.92.
Industrials were stronger, on the shoulders of railroads. Canadian Pacific hiked $6.32, or 1.8%, to $354.88, while Canadian National chugged along $1.51, or 1.2%, to $125.45.
Golds also did their best, with OceanaGold picking up 30 cents, or 12.4%, to $2.73, while Endeavour Mining spiked 26 cents, or 1%, to $27.08.
Countries have started isolating hundreds of citizens evacuated from the Chinese city of Wuhan to stop the spread of the epidemic that has killed 170 people.
All eyes were on the World Health Organization, which hasn't declared the flu-like coronavirus a global emergency, but was to reconsider its position later in the day.
On the economic slate, Statistics Canada said the average weekly earnings of non-farm payroll employees were $1,042 in November, little changed from October.
On a year-over-year basis, earnings grew 3.1%, continuing an upward trend observed since March
ON BAYSTREET
The TSX Venture Exchange dropped 2.33 points, to 575.16.
All but three of the 12 TSX subgroups remained negative on the day, with health-care dropping 1.1%, consumer discretionaries down 0.9%, and materials sliding 0.6%.
The three gainers were utilities and industrials, each up 0.4%, and gold, shining 0.2% brighter.
ON WALLSTREET
Stocks traded higher in the final minutes of Thursday’s session, erasing declines from earlier in the day as investors assessed the latest news round the deadly coronavirus.
The Dow Jones Industrials recovered 124.41 points to finish Thursday’s session at 28,858.86. At its low of the day, the Dow had fallen as much as 244 points.
The S&P 500 regained 10.26 points at 3,283.66
The NASDAQ reattached 23.77 points to 9,298.93.
The major averages cut their losses after the World Health Organization declared a global health emergency, but at the same time, did not recommend travel to China be restricted and said the country had the situation under control.
China’s National Health Commission confirmed Thursday that the death toll has hit 170, with confirmed cases of the virus surpassing 7,700. Cases have also been confirmed in places outside of China, including the U.S.
Caterpillar, a bellwether for global the global economy, was down 1.4%.
Wall Street was also under pressure after Facebook reported quarterly results that showed a sharp rise in expenses and narrowing margins. Facebook shares fell more than 6%.
Tesla enjoyed a second consecutive quarterly profit on record vehicle deliveries and vowed to produce over 500,000 units this year, sending the stock surging 11%. Microsoft beat Wall Street expectations on fourth-quarter sales and profit on the back of strong cloud revenue.
About 200 S&P 500 companies have reported quarterly earnings thus far, with 70% of them posting better-than-expected profits.
In-line data on the U.S. economy failed to quell the lingering fears around the virus and the mixed quarterly results. U.S. GDP grew by 2.1% in the fourth quarter, matching a Dow Jones estimate. However, the U.S. economy grew at its slowest annual rate in three years in 2019.
Prices for the 10-Year U.S. Treasury lost remaining strength, propelling yields back up to Wednesday’s 1.59%. Treasury prices and yields move in opposite directions.
Oil prices decreased 54 cents to $52.79 U.S. a barrel.
Gold prices gained $4.70 to $1,580.70 U.S. an ounce.
