Canada's main stock index endured probably its worst session in a month on Wednesday after the Bank of Canada signaled it could raise interest rates sooner than previously forecast.
The TSX Composite got bruised 218.46 points, or 1%, to close Wednesday at 20.954.99.
The Canadian dollar gained 0.2 cents to 80.91 cents U.S.
Health-care took the worst wounds, with Aurora Cannabis docking 32 cents, or 3.7%, to $8.41, Tilray tumbled 21 cents, or 3.1%, to $6.57.
Among energy plays, Vermilion Energy lost 71 cents, or 5.1%, to $13.21, while MEG Energy handed back 57 cents, or 4.9%, to $11.15.
Among consumer staples, SunOpta fell 50 cents, or 5.2%, to $9.19, while Village Farms International surrendered 30 cents, or 3.1%, to $9.30.
Communications stocks tried to provide a balm, as Rogers gained $1.55, or 3.3%, to $58.16, while Shaw Communications hiked 64 cents, or 1.8%, to $35.41.
In real-estate, H&R REIT units added 53 cents, or 3.2%, to $16.99, while Allied Properties REIT moved higher 60 cents, or 1.5%, to $43.75.
On the economic front, the Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.025%
ON BAYSTREET
The TSX Venture Exchange swooned 11.97 points, or 1.3%, to 946.79
All but two of the 12 TSX subgroups had fallen by Wednesday’s close, with health-care plummeting 2.6%, energy sagging 2.3%, and consumer stapled 1.6% to the bad.
The two gainers proved to be communications, up 1.1%, while real-estate moved doggedly ahead 0.2%.
The two gainers were communications, ahead 0.4%, and real-estate, eking ahead 0.01%.
ON WALLSTREET
The S&P 500 fell from a record high on Wednesday as the momentum from a strong earnings season started to fade.
The Dow Jones Industrials toppled 266.19 points to 35,490.69, from Tuesday’s all-time record, dragged down by Visa.
The S&P 500 dipped 23.11 points to 4,551.68, from Tuesday’s record high.
The NASDAQ Composite picked up 75.33 points to 15.311.04, mid a jump in Microsoft and Alphabet shares.
Strong results have been key to pushing the major averages to new highs. The S&P 500 has rallied more than 6% in October, on track for its best monthly performance since November 2020. The equity benchmark reached its 57th record close of 2021 on Tuesday.
Microsoft shares jumped 4.2% after the tech company reported earnings that exceeded analysts’ estimates and the fastest revenue growth since 2018. Google-parent Alphabet also popped 5% following a stronger-than-expected quarterly report.
Visa’s stock slipped 6.8% after issuing a revenue outlook that some analysts considered conservative. Plus, the Justice Department is investigating Visa’s relationship with financial-technology firms, sources familiar with the matter told Dow Jones.
General Motors shares fell more than 4% even after the industrial giant topped Wall Street’s earnings and revenue estimates for the third quarter. Boeing saw its stock falling 1.4% after the aircraft maker posted a wider-than-expected loss.
Robinhood shares were getting slammed, down nearly 11% the day after the trading app reported revenue well below expectations primarily due to weakness in crypto trading. Twitter shares also fell 9% on concerns about expense guidance, despite strong earnings.
So far roughly 38% of the S&P 500 has reported earnings. Of the names that have posted quarterly updates, 83% have topped earnings expectations, while 79% have exceeded revenue estimates.
Texas Instruments shares tumbled more than 4% after the company missed revenue estimates while Visa fell 6% despite beating on the top and bottom lines. Enphase Energy leaped 50% after reporting record revenue in face of supply chain headwinds.
Coca-Cola rose about 2% after the company posted a beat on the top and bottom lines and raised its outlook, saying the business was getting stronger particularly in areas where the COVID recovery has been the best.
Prices for 10-year Treasurys gained sharply, lowering yields to 1.54% from Tuesday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices weakened $2.53 to $82.12 U.S. a barrel.
Gold prices recovered $4.90 to $1,798.30 U.S. an ounce.
