Stocks Fall Again by Noon, After Morning Gains

Bombardier, Shopify in Spotlight

Canada's main stock index lost ground it had initially gained on Thursday, aided by gains in Bombardier Inc., although advances were limited by weakness in miners and on concerns over a global recession due to aggressive interest rate hikes.

The S&P/TSX tumbled 194.38 points, or 1%, to proceed into lunch hour Thursday at 18,809.66.

The Canadian dollar withered 0.07 cents to 77.06 cents U.S.

Bombardier acquired 39 cents, or 1.7%, to $23.55, %, after it said on Wednesday that workers on a key program for the business jet maker ratified a new labour contract that will deliver pay hikes of up to 18.5% over five years.

Tech stocks gathered momentum, as Shopify leaped $30.93, or 7.1%, to $469.57.

Energy dragged, though, as Baytex Energy tailed off 63 cents, or 10%, to $5.67.

Bank of Canada Senior Deputy Governor Carolyn Rogers said on Wednesday that inflation in Canada was much too high and did not rule out a 75-basis-point increase at the central bank's July decision.

ON BAYSTREET

The TSX Venture Exchange was in the red 6.29 points, or 1%, to 634.61.

Still, eight of the 12 TSX subgroups had gained ground, with information technology sprinting 3.1%, health-care up 2.3%, and consumer staples better by 1.7%.

The four laggards were weighed most by energy, sliding 4.6%, materials, easing 3.2%, and gold, dulling 2.2%.

ON WALLSTREET

The NASDAQ Composite rose on Thursday while the S&P 500 dipped slightly, as bond yields slid and Wall Street continued to weigh recession risks.

The Dow Jones Industrials moved backward by midday 90.46 points to 30,392.67.

The S&P 500 quelled some early gains but still managed to stay positive 4.98 points to 3,765.64.

The tech-heavy NASDAQ stayed green 84.36 points to 11,137.40.

The major averages came into Thursday’s session posting strong gains for the week. The Dow, S&P 500 gained 2%, and the NASDAQ moved ahead 3% in that time.

Homebuilder stocks led gains in the S&P 500, as the Home Construction ETF (ITB) gained 2.6% on Thursday and 4.6% this week. Shares of Lennar and D.R. Horton are both up more than 3%.

Consumer staples stocks such as Clorox were up 4%. Shares of Costco and Kellogg each gained more than 2%.

On Thursday, the U.S. Labor Department said weekly jobless claims fell 2,000 to a seasonally adjusted 229,000 for the week ended June 18, though the labour market remains tight.

UBS is the latest investment bank this week to raise its odds of a recession to 69%, citing lackluster data last week in housing, industrial production and capital goods.

Citigroup increased its odds of a recession to 50%, citing a slide in consumer demand that could make it more difficult for the Federal Reserve to achieve a soft landing.

Goldman Sachs said the probability of a downturn is “higher and more front-loaded” than it was previously. In a Monday note, the firm raised its bet of a U.S. recession to 30%, up from 15%, over the next year. It increased those odds to 48%, up from 35%, over the next two years.

On the other hand, a top strategist at JPMorgan on Thursday said he believes the U.S. economy will dodge a recession altogether, with the stock market making back any losses in the back half of the year.

Treasury prices jumped, lowering yields to 3.05% from Wednesday’s 3.15%. Treasury prices and yields move in opposite directions.

Oil prices lost $1.96 to $104.23 U.S. a barrel.

Gold prices subtracted $2.30 to $1,836.10 U.S. an ounce.