Stocks in Canada’s largest centre reversed ground in Wednesday’s first hour, while investors awaited the U.S. Federal Reserve's first projections on the economy post-coronavirus outbreak.
The S&P/TSX Composite Index began Wednesday down 104.69 points to 15,729.05.
The Canadian dollar inched up 0.02 cents at 74.54 cents U.S.
Dollarama beat estimates for quarterly sales on Wednesday, as consumers bought more groceries and other essentials per visit to its stores amid the coronavirus crisis. Dollarama jumped $2.67, or 5.7%, to $49.51.
Canadian IT and consultancy company CGI Inc said on Tuesday former Bank of Canada Governor Stephen Poloz has joined its board.
CGI shares, for what it’s worth, gained 10 cents to $91.37.
TD Securities raised the price target on Alimentation Couche-Tard to $49.00 from $43.00. Couche-Tard shares galloped $1.12, or 2.7%, to $42.48.
Scotiabank raised the rating on Chartwell Retirement Residences to outperform from sector perform. Chartwell units picked up 23 cents, or 2.5%, to $9.59.
TD Securities raised the price target on Equinox Gold to $21.00 from $20.00. Equinox shares dropped $3.42, or 4.3%, to $75.50.
ON BAYSTREET
The TSX Venture Exchange let go of 0.33 points to 564.79.
Eight of the 12 TSX subgroups were in the red Tuesday, with energy sliding 2.7%, while real-estate declined 2.5%, and health-care issues faded 1.9%.
The four gainers were led by gold, up 2.5%, materials, ahead 1.2%, and information technology up 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average fell on Wednesday as investors awaited an update from the Federal Reserve on the state of the economy and status of any further stimulus from the central bank
The 30-stock index slumped 266 points, or 1%, to begin a midweek session at 27,006.30.
The S&P 500 dropped 14.75 points to 3,192.43.
The NASDAQ added to Tuesday’s all-time high by 42.56 points to 9,996.31, as gains in major tech stocks limited the broader market’s decline.
Shares of Amazon and Apple gained more than 1% each. Facebook took on 0.7%, Alphabet gathered 0.6%, and Netflix rose 1.1%.
The Fed is expected to keep policy unchanged, but investors will be watching for thoughts on possibly implementing yield caps and strengthening forward guidance on how long the Fed will keep current policies in place.
The Fed will be revealing its first forecast for the economy and interest rates since late last year, as it skipped a forecast in March just as the pandemic forced the abrupt shutdown of the economy
The central bank’s announcement is set for release at 2 p.m. EDT. Fed Chairman Jerome Powell is scheduled to answer questions at 2:30 p.m.
Prices for the 10-Year Treasury inched higher, lowering yields to 0.80% from Tuesday’s 0.82%. Treasury prices and yields move in opposite directions.
Oil prices lost 73 cents to $38.21 U.S. a barrel.
Gold prices advanced eight dollars to $1,728.90 U.S. an ounce.
