Canada's main stock index fell on Thursday as the energy sector dropped 4.5% with oil prices falling due to piling U.S. inventories, while a sobering economic outlook from the Federal Reserve dented risk appetite.
The S&P/TSX Composite Index approached noon down 441.33 points, or 2.8%, to 15,260.
The Canadian dollar shrank 0.68 cents at 73.88 cents U.S.
The largest percentage gainer on the TSX was Hexo Corp, jumping 13 cents, or 9.6%, to $1.48, after the pot producer's third-quarter revenue soared 70% to $22.1 million.
Hexo was followed by Transcontinental, which rose 68 cents, or 5.3%, to $13.48.
Secure Energy Services fell 33 cents, or 16.8%, the most on the TSX, to $1.64, followed by Shawcor, down 76 cents, or 19.5%, to $3.13.
ON BAYSTREET
The TSX Venture Exchange plunged 8.45 points, or 1.5%, to 558.93.
All 12 TSX subgroups had fallen into the red by noon hour, primarily energy, being roughed up 6.8%, while health-care lost 5.6%, financials, trailed Wednesday’s close by 3.7%.
ON WALLSTREET
Stocks fell sharply on Thursday as coronavirus cases increased in some states that are reopening up from lockdowns. Shares that have surged recently on hopes for a smooth reopening of the economy led the declines.
The Dow Jones Industrials plummeted 1,101 points, or 4.1%, to 25,888.99. Thursday’s losses put the Dow on pace for its first three-day losing streak in a month and for its biggest one-day drop since April 1.
The S&P 500 shed 107.7 points, or 3.4%, to 3,081.32. The S&P 500 was also headed for its longest losing streak since early March.
The NASDAQ sagged 250.62 points, or 2.5%, from Wednesday’s all-time high to 9,769.72.
Shares of United Airlines, Delta, American and Southwest all dropped more than 7%. Carnival Corp. and Norwegian Cruise Line shares fell more than 12%. Gap dropped 6.8% and Kohl’s shares traded lower by 9%.
Netflix gained 1.8%, and Zoom Video — which has also benefited from consumers staying at home during the pandemic — rose 3.4% clawing back earlier losses.
Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking COVID-19 hospitalizations. AP said nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases.
To be sure, one official said states such as Arizona and Texas "never really got rid of the first wave," and added: "It’s not a second wave."
Weekly jobless claims rose by 1.5 million last week, slightly less than the Dow Jones estimate of 1.6%. Continuing claims, which reflect the number of people receiving unemployment benefits for at least two weeks, declined by 339,000 to 20.9 million.
Prices for the 10-Year Treasury leaped, lowering yields to 0.68% from Wednesday’s 0.74%. Treasury prices and yields move in opposite directions.
Oil prices sank $3.08 to $36.52 U.S. a barrel.
Gold prices rebounded $32.30 to $1,753 U.S. an ounce.
