TSX Dips on Virus Fears

Bombardier, Pretium in Focus

Canada's main stock index fell on Thursday for the first time in four sessions after a sharp jump in new coronavirus cases in China rattled investors worldwide and planemaker Bombardier slid on reporting a quarterly loss.

The TSX Composite Index stepped back 16.67 points Thursday from Wednesday’s all-time high to enter noon hour at 17,816.18

The Canadian dollar staggered 0.01 cents to 75.42 cents U.S.

Bombardier fell three cents, or 1.9%, to $1.54, as the quarterly loss saw investors look past positive cash flow forecast for 2020 and a decision to sell the remaining stake in its capital-intensive commercial aircraft program.

The largest percentage gainer on the TSX was Canadian Tire Corp, which jumped 77 cents to $145.62, after topping profit estimates, while Wesdome Gold Mines triumphed 55 cents, or 6.3%, to $9.28.

Pretium Resources gained four cents to $10.02 as at least two brokerages downgraded the stock a day after it reported quarterly results.


The TSX Venture Exchange retreated 0.84 points to 570.89.

Seven of the 12 TSX subgroups remained red midday, weighed most by communications, down 0.8%, while energy each slid 0.7%, and health-care, off 0.3%.

The five gainers were led by gold, up 1.5%, materials, better by 1%, and information technology, ahead 0.6%.


Stocks recovered most of their earlier losses on Thursday as investors grappled with a a jump in reported coronavirus cases and the virus’ possible economic impact.

The Dow Jones Industrials fell 78.78 points to 29,472.64, falling from Wednesday’s all-time high

The S&P 500 came off its lows of the morning, staying in the minus column 1.24 points from Wednesday’s peak to 3,378.21

The NASDAQ eked up 1.27 points to 9,727.23.

In corporate news, Cisco fell more than 6% after the company reported another decline in overall revenue. In the fourth quarter, Cisco’s revenue dropped by 4% on a year-over-year basis. That decline overshadowed a better-than-expected profit.

PepsiCo, Alibaba and Applied Materials all reported quarterly earnings that beat expectations. Applied Materials shares gained 4.7%, but PepsiCo faltered 0.1%, and Alibaba dropped 1.6%.

The major averages hit their session lows after the CDC confirmed the 15th U.S. coronavirus case.

China said it confirmed 15,152 new cases and 254 additional deaths. That brings the country’s total death toll to 1,367 as the number of people infected jumped to nearly 60,000, according to the Chinese government.

On the data front, weekly jobless claims rose marginally, but remained near multi-decade lows. The latest read on the U.S. Consumer Price Index — a widely followed measure of inflation — rose 2.5% on a year-over-year basis.

Prices for the 10-Year U.S. Treasury gained a bit of ground, lowering yields to 1.62% from Wednesday’s 1.63%. Treasury prices and yields move in opposite directions.

Oil prices acquired 22 cents to $51.39 U.S. a barrel.

Gold prices hiked $6.50 to $1,578.10 U.S. an ounce.