TSX Clears Breakeven at Open

Stocks in Canada's largest market doggedly gained ground in the first hour, as tech and consumer stocks displayed some muscle after a day of solid growth Tuesday.

The TSX opened Wednesday upward but 13.98 points to 17,520.46.

The Canadian dollar doffed 0.35 cents to 78.38 cents U.S.

Aphria and rival Tilray have agreed to combine their operations,
Bloomberg News reported on Wednesday.

Aphria shares acquired 29 cents, or 2.8%, to $10.61, while Tilray jumped $1.80, or 22.9%, in New York, to $9.67.

ATB Capital Markets initiates coverage on Empire Company with an outperform rating and price target of $44.00. Empire shares 37 cents, or 1.1%, to $35.21.

CIBC starts coverage on Hudbay Minerals with an outperform rating and a price target $10.75. Hudbay shares lost a nickel to $8.31.

CIBC raises the rating on Yangarra Resources to neutral from underperform. Yangarra shares lost two cents, or 2.8%, to 70 cents.

On the economic slate, Statistics Canada reported November’s consumer price index rose 1.0% on a year-over-year basis in November, up from a 0.7% increase in October. On a seasonally adjusted monthly basis, the CPI rose 0.3% in November, matching the increase in October.

Also, the agency non-residents added $6.9 billion of Canadian securities to their portfolios in October, with the bulk of the investment in government bonds. Meanwhile, Canadian investors acquired $8.0 billion of foreign securities, largely foreign government bonds.

Elsewhere, wholesale sales jumped 1.0% in October to $66.7 billion. It was the sixth consecutive increase for the sector.

Finally, the Canadian Real Estate Association said MLS sales edged back by 1.6% in November. Small declines in October and November notwithstanding, monthly activity is still running well above most of history.

ON BAYSTREET

The TSX Venture Exchange gained 4.34 points to 795.58.

Seven of the 12 TSX subgroups started out positive, with information technology and consumer staples eking up 0.7% each, while consumer discretionaries picked up 0.5%.

The five laggards were weighed most by energy, tumbling 1.7%, while utilities faded 0.4%, and materials, off 0.1%.

ON WALLSTREET

Read:

• Tesla’s 1000% Stock Price Explosion Isn’t About Electric Cars

• Fidelity Minerals Hunting for Gold & Copper in Northern Peru

• These Are Some of the Top Reasons Lithium Prices Could Accelerate in 2021

Stocks dipped on Wednesday as traders weighed the apparent progress in the U.S. fiscal stimulus talks and disappointing economic data.

The Dow Jones Industrials dipped from Tuesday’s close by 27.97 points to 30,171.34.

The S&P 500 hesitated 0.01 points to 3,694.61.

The NASDAQ gave back 24.83 points to 12,595.06, from Tuesday’s record closing high.

Wall Street was coming off a strong session in which the major averages all gained more than 1%.

Politico reported Congress was on the brink of a $900-billion rescue deal that would include a new round of direct payments to consumers. However, that package would exclude a liability shield for businesses and state and local aid.

The report came after House Speaker Nancy Pelosi, Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer and House Minority Leader Kevin McCarthy met Tuesday to strike a bipartisan aid deal. Treasury Secretary Steven Mnuchin called into the talks.

The deadline on stimulus looms amid some of the darkest days of the pandemic. The U.S. is recording at least 215,400 new Covid-19 cases and at least 2,300 virus-related deaths each day, based on a seven-day average using Johns Hopkins University data.

Wednesday’s gains were kept in check by a steeper-than-expected drop in U.S. retail sales. The Commerce Department said retail sales fell by 1.1% in November. Economists polled by Dow Jones expected a decline of 0.3%.

Prices for the 10-Year Treasury dipped, raising yields to 0.92% from Tuesday’s 0.91%. Treasury prices and yields move in opposite directions.

Oil prices docked 40 cents to $47.22 U.S. a barrel.

Gold prices lost $1.50 to $1,853.80