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TSX Weakens, Day After Fed-Inspired Rally

Published 2024-08-01, 08:25 a/m
© Reuters TSX Weakens, Day After Fed-Inspired Rally
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Baystreet.ca - Canada's main stock index slipped on Thursday, pressured by a drop in energy and materials shares, while investors assessed more domestic and U.S. corporate earnings.

The TSX Composite Index withered 380.89 points, or 1.7%, as Thursday morning became afternoon at 22,729.92

The Canadian dollar dipped 0.2 cents at 72.22 cents U.S.

Among earnings movers, TC Energy (TSX:TRP) rose 84 cents, or 1.4%, to $59.46, as the pipeline operator beat second-quarter profit estimates, helped by higher volumes of natural gas transported through its system.

Canada Goose (TSX:GOOS) slid 68 cents, or 4.3%, to $15.25, despite beating Wall Street estimates for quarterly revenue.

Thomson Reuters (TSX:TRI) fell $5.84, or 2.6%, to $217.91. It reported second-quarter earnings that topped Wall Street expectations as revenue rose 6% and it continued to aggressively deploy artificial intelligence technology for its customers.

In the economic field, Markit’s Manufacturing PMI for July decreased to 47.8 from 49.3 in June.

ON BAYSTREET

The TSX Venture Exchange fell 8.01 points, or 1.4%, to 574.57.

All but three of the 12 TSX subgroups were lower, weighed most by energy, down 3.1%, information technology, slumping 2.4%, and materials, retreating 2.1%.

The three gainers were health-care and communications, each taking on 0.4%, while real-estate edged forward 0.1%.

ON WALLSTREET

The stock market tumbled on Thursday as fresh data stoked fears over a possible recession reversing momentum from earlier in the week.

The Dow Jones Industrials dumped 490.95 points, or 1.2%, to 40,351.94.

The S&P 500 index slid 44.77 points to 5,477.53.

The NASDAQ fell 234.98 points, or 1.3%, to 17,364.42.

Stocks that would suffer the most under a recession were among the biggest lowers, including JPMorgan Chase (NYSE:JPM), which lost 2%, and Boeing (NYSE:BA), which fell more than 5%.

Stocks began the day on a high note, as Meta (NASDAQ:META) Platforms rallied more than 5.5% on stronger-than-expected second-quarter results and upbeat guidance. But Meta was one of the few stocks in the green as the trading day went on. Even big tech stocks like Nvidia (NASDAQ:NVDA) were feeling the pain with the AI chip leader off 3%.

Stocks are coming off a winning session that saw the S&P 500 rally 1.6% for its best day since February. The Nasdaq popped more than 2%, while the 30-stock Dow closed slightly higher.

Those gains came as Federal Reserve Chair Jerome Powell signaled the central bank could cut at its next meeting if the data continues supporting the narrative that inflation is easing. The Fed held interest rates steady.

Initial jobless claims rose to 249,000 last week, higher than a Dow Jones forecast of 235,000 and the most since August 2023. The ISM manufacturing index came in at 46.8%, worse than expected and a signal of economic contraction.

Prices for the 10-year Treasury gained, with yields falling to 3.98% from Wednesday’s 4.06%. Treasury prices and yields move in opposite directions.

Oil prices wilted 67 cents at $77.24 U.S. a barrel.

Gold prices shone brighter $16.20 to $2,489.20.

This content was originally published on Baystreet.ca

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