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TSX Finishes in the Red

Published 2024-10-02, 12:37 p/m
© Reuters.  TSX Finishes in the Red
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Baystreet.ca - (CORRECTION: The section on Bonds near the bottom of this page gives a reference to prices rising. They were, in fact, lowering, thus raising the yields.)

Stocks in Toronto leaned lower by Wednesday’s closing bell, as weakness in health-care and consumer staples provided gravity,

The TSX Composite Index drooped 32.91 points to conclude Wednesday to 24,001.08.

The Canadian dollar gained 0.11 cents to 74.09 cents U.S.

Iran on Tuesday carried a ballistic missile strike on Israel and Israeli Prime Minister Benjamin Netanyahu's also vowed to retaliate. Escalation of the conflict caused a wider selloff in global markets on Tuesday.

Investors are cautious due to lack of clarity on how the escalation in the region might evolve, but this lifted prices of oil and safe-haven assets like gold, as well as their related stocks.

Health-care stocks led the way down, as Sienna Senior Living (TSX:SIA) capsized 25 cents, or 1.5%, to $16.44, while Bausch Health (TSX:BHC) Companies slid 14 cents, or 1.3%, to $11.01.

Consumer staples swooned, as Loblaw Companies (TSX:L) fell $3.31, or 2.1%, to $175.73, while George Weston (TSX:WN) sank $3.26, or 1.4%, to $223.49.

Communications dipped also, as Cogeco (TSX:CGO) handed back 86 cents, or 1.2%, to $70.83, while BCE (TSX:BCE) ditched 51 cents, or 1.1%, to $46.49.

Tech stocks, however, pointed upward, as Quarterhill gained five cents, or 3%, to $1.72, while Sangoma captured 14 cents, or 1.8%, to $7.86.

In consumer discretionary stocks, Linamar (TSX:LNR) tacked on 95 cents, or 1.5%, to $63.78, while Dollarama (TSX:DOL) shares prospered $1.28 to $137.94.

Capstone Copper said its 2024 consol copper production is likely to be near the lower end of its forecast range. Capstone shares added 16 cents, or 1.5%, to $10.91. Elsewhere in the material sector, First Majestic Silver (TSX:AG) jumped 23 cents, or 2.8%, to $8.60.

ON BAYSTREET

The TSX Venture Exchange edged up 3.08 points to 590.17.

Eight of the 12 TSX subgroups slumped, with health-care down 1.3%, consumer staples faltering 1.2%, and communications off 1%.

The four gainers were led by information technology, up 0.7%, consumer discretionary stocks, ahead 0.3%, and materials, improving 0.2%.

ON WALLSTREET

The S&P 500 was little changed on Wednesday as the market rally stalled amid rising tensions in the Middle East.

The Dow Jones Industrial Average gained 39.55 points to conclude Wednesday to 42,196.52.

The much broader index skinned ahead 0.79 points to 5,709.54

The NASDAQ Composite gained 14.76 points to 17,925.12.

Nike (NYSE:NKE) slid more than 6% after the sneaker giant pulled full-year guidance ahead of its CEO change. Tesla (NASDAQ:TSLA) dropped 3% after reporting delivery numbers, though the technology sector was buoyed by a rise in Nvidia (NASDAQ:NVDA).

That action follows a losing session after Iran’s firing of ballistic missiles on Israel dented risk appetite and investor enthusiasm for the new trading period. Investors are readying for more uncertainty as Israel begins a ground operation into Lebanon and tensions escalated with Iran-backed militant group Hezbollah.

ADP (NASDAQ:ADP) data released Wednesday showed better-than-expected private payroll growth in September. That comes ahead of Friday’s closely followed nonfarm payroll report, which could play a major role in the market’s direction and the Federal Reserve’s next rate move as its cutting cycle begins.

Prices for the 10-year Treasury sagged, raising yields to 3.78% from Tuesday’s 3.74%. Treasury prices and yields move in opposite directions.

Oil prices gained $1.19 at $71.02 U.S. a barrel.

Gold prices let go of $11.10 to $2,679.20 U.S. an ounce

This content was originally published on Baystreet.ca

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