Canada markets closed

TSX Takes Pounding over Economy Fears

Stock investors in Toronto took little comfort from signs south of the border regarding the duration of this current recession, and bid markets sharply downward by the close. The negative effect was particularly felt in health-care issues.

The S&P/TSX Composite Index concluded Wednesday down 377.95 points, or 2.5% at 14,503.21.

The Canadian dollar dipped 0.14 cents to 70.95 cents U.S.

Health-care, as mentioned, got bruised, as Aurora Cannabis slumped 86 cents, or 9.5%, to $8.22, while Canopy Growth lost $1.69, or 8.2%, to $19.04.

Among energy concerns, Frontera Energy dipped 66 cents, or 15.4%, to $3.64, while Shawcor Ltd. slid 19 cents, or 10.4%, to $1.63.

In the consumer discretionary sector, MTY Food Group collapsed $1.58, or 7.9%, to $18.46, while Canada Goose Holdings fell $2.08, or 6.7%, to $29.02.

Only gold seemed to clear breakeven, with Barrick Gold acquiring 38 cents, or 1%, to $36.98, while Novagold gained 34 cents, or 2.2%, to $15.63.


The TSX Venture Exchange tumbled 7.3 points, or 1.5%, to 493.41.

All but one of the 12 TSX were lower on the session, as health-care shed 6.3%, energy lost 5.5% worth of steam, and consumer discretionary fell 4.1%.

Only gold turned positive, and only 0.3% at that.


Stocks fell on Wednesday as investors grappled with downbeat remarks from the top-ranking Federal Reserve official amid jitters about reopening the economy along with worries over the market’s valuation


The Dow Jones Industrials fell another 516.81 points, or 2.2%, on top of Tuesday’s 450-point-plus decline, to 23,247.97. The 30-stock average had its worst day since May 1.

Walgreens Boots Alliance and American Express were the worst-performing stocks in the Dow, falling at least 5.4% each.

The S&P 500 fell 50.12 points, or 1.8%, to 2,820. Energy stocks, down 4.4%, and financials, off 3%, led the S&P 500 lower. Bank of America and Citigroup both dropped over 4% while Wells Fargo closed 6.3% lower. JPMorgan Chase fell 3.5%.

The tech-heavy index NASDAQ slumped 139.38 points, or 1.6%, to 8,863.17. The tech-heavy index also fell back into negative territory for 2020 after Wednesday’s decline.

Cruise line stocks Carnival, Royal Caribbean and Norwegian Cruise Line all fell at least 5%. Those stocks are among those that would benefit from the economy reopening. Airline stocks reached a fresh low for the crisis, with American Airlines falling 5.6% while Delta slid 7.7%. United Airlines fell 9%.

"While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks," Fed Chairman Jerome Powell said in prepared remarks for a webcast event with the Peterson Institute for International Economics, noting that more needs to be done to sustain the economy.

Prices for the 10-Year Treasury were higher, lowering yields to 0.65% from Tuesday’s 0.66%. Treasury prices and yields move in opposite directions.

Oil prices deducted 27 cents to $25.51 U.S. a barrel.

Gold prices jumped $15.60 to $1,722.40 U.S. an ounce.