(MENAFN- Baystreet.ca)
TSX Pulls Away from Heights
Canopy, Capstone among Most Visible Stocks
Equities in Canada's largest centre stumbled Wednesday, amid investor uncertainty heading into the month of September and nearing the end of the federal election campaign.
The TSX Composite let go of 72.12 points, to end Wednesday at 20,734.51.
The Canadian dollar subtracted 0.21 cents to 78.86 cents U.S.
Health-care issues took the worst pounding, as Canopy Growth parted with $1.27, or 6%, to $20.09, while Tilray shed 61 cents, or 3.6%, to $16.24.
Among tech concerns, Dye & Durham handed over $2.24, or 4.6%, to $46.06, while BlackBerry dropped 54 cents, or 3.9%, to $13.18.
In materials, Capstone Mining docked 37 cents, or 6.6%, to $5.21, while First Quantum Minerals lost $1.86, or 7.3%, to $23.76.
Consumer staples picked up some of the slack, with Jamieson Wellness soaring $1.49, or 4.2%, to $37.02, while Loblaw Companies took on $2.04, or 2.3%, to $23.76.
In real-estate, First Capital REIT units improved 38 cents, or 2.1%., to $18.28, while Granite REIT climbed $1.90, or 2.1%, to $93.59.
In communications, TELUS grew 52 cents, or 1.8%, to $29.94, while BCE added 92 cents, or 1.4%, to $66.94.
The Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.25%.
Elsewhere, Western University's IVEY School of Business reported its Purchasing Managers Index leaped to 66, towering over July's 56.4, but down from the 67.8 reading in August 2020.
ON BAYSTREET
The TSX Venture Exchange dropped 7.92 points to 905.57.
Seven of the 12 TSX subgroups ended the day lower, as health-care slacked 2.7%, information technology was off 1.4%, and materials fell 1.2%.
Consumer staples led the five gainers, up 1%, while real-estate grabbed 0.7%, and communications heightened 0.5%.
ON WALLSTREET
The Dow Jones Industrial Average and S&P 500 fell for a third straight day on Wednesday as investors reassess the economic growth outlook following a smooth ride in the market so far this year.
The Dow slid 68.93 points to 35,031.07
The S&P 500 doffed 5.96 points to 4,514.07
The NASDAQ Composite plummeted from Tuesday's all-time high, by 87.69 points, to 15,286.64.
The 30-stock average is in the red for its third trading day in a row. On Tuesday, the Dow fell more than 260 points, adding to Friday's losses after a disappointing August jobs report. September's outlook also remains clouded by the coronavirus delta variant.
Many investors are bracing for volatility in September, one of the seasonally weakest months of the year. Price swings could make a comeback, especially with the S&P 500 up more than 20% this year without a single 5% pullback.
Shares of Coinbase fell more than 3.2% after the cryptocurrency exchange revealed it received a notice of possible enforcement action from the Securities and Exchange Commission. Coupa Software fell 4.2% despite its better-than-expected quarterly financial results.
One of the catalysts for a selloff could be the Federal Reserve and the potential for it to pull back an unprecedented monetary stimulus to support the economy throughout the pandemic. Fed Chairman Jerome Powell has indicated that the central bank is likely to begin withdrawing some of its easy-money policies before year-end, though he still sees interest rate hikes in the distance.
On Wednesday, the Labor Department released the Job Openings and Labor Turnover Survey, which showed job openings rose to a record 10.9 million in July.
Meanwhile, in the Fed's periodic“Beige Book,” the central bank said U.S. businesses are experiencing rising inflation that is being intensified by a shortage of goods and likely will be passed onto consumers in many areas.
The Fed also reported that growth overall had“downshifted slightly to a moderate pace” amid rising public health concerns during the July through August period that the report covers.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.34% from Tuesday's 1.37%. Treasury prices and yields move in opposite directions.
Oil prices hiked a dollar to $69.35 U.S. a barrel.
Gold prices dipped $7.40 to $1,791.10 U.S. an ounce.
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