Stocks in Canada’s largest market dropped to a near three-week low on Monday, dragged by the energy sector, as broader risk appetite was rattled by fears of resurgence in coronavirus cases.
The S&P/TSX Composite Index came off its lows of the morning, but remained 91.92 points shy of breakeven, to pause for noon EDT at 15,164.65.
The Canadian dollar slipped 0.02 cents at 73.37 cents U.S.
Cineplex fell $2.14, or 15.5%, the most on the TSX, to $11.68, after Britain's Cineworld scrapped plans to buy the firm for $1.65 billion.
The largest percentage gainer on the TSX was Shopify, which jumped 6.2% after it partnered with retail behemoth Walmart.
On the economic beat, Statistics Canada said manufacturing sales fell by a record 28.5% to $36.4 billion in April, following a 9.8% decline in March.
ON BAYSTREET
The TSX Venture Exchange lost 1.57 points to 553.34.
Eight of the 12 TSX subgroups were lower by noon EDT, with energy plunging 3%, consumer discretionary stocks off 1.4%, and industrials sinking 1.2%.
The four gainers were led by gold, up 0.7%, utilities, climbing 0.5%, and information technology issues picking up 0.3%.
ON WALLSTREET
Stocks dropped on Monday as investors grapple with signs of a second wave of coronavirus cases as the U.S. economy reopens.
The Dow Jones Industrials stayed in the minus category 312.21 points, or 1.2%, to 25,293.33.
The S&P 500 plummeted 26.64 points to 3,014.62.
The NASDAQ subtracted 19.99 points to 9,568.82.
Stocks which stand to benefit the most from a successful reopening led the losses.
Carnival and Royal Caribbean cruise lines each lost more than 4%. United Airlines lost 3.7% and American Airlines slid 3.5%. Retailers Kohl’s and Gap declined. These types of stocks surged in May as investors bet that the worst of the virus was over.
States in the reopening process including Alabama, California, Florida and North Carolina are reporting a rise in daily new coronavirus cases. Texas and North Carolina reported a record number of virus-related hospitalizations Saturday.
Dr. Scott Gottlieb, former chief of the Food and Drug Administration, told the media emerging coronavirus hotspots could “quickly get out of control.”
Meanwhile, Governor Andrew Cuomo warned New Yorkers against triggering a second wave of the coronavirus. He said on Sunday the state has received 25,000 complaints about businesses violating rules of the phased reopening, threatening to take liquor licenses from bars and restaurants.
Prices for the 10-Year Treasury gained ground, lowering yields to 0.68% from Friday’s 0.69%. Treasury prices and yields move in opposite directions.
Oil prices slumped $1.33 to $34.93 U.S. a barrel.
Gold prices ducked $24.50 to $1,712.80 U.S. an ounce.
