TSX Mildly Lower

Canada Goose Still Soars

Equities in Toronto came in for a landing Wednesday, turning their backs in early morning gains, after government data showed the domestic economy expanded in July, bolstering optimism around a post-coronavirus
recovery.

The TSX dropped 19.16 points to pause for lunch Wednesday at 16,192.36.

The Canadian dollar barrelled higher 0.32 cents to 75.03 cents U.S.

The largest percentage gainer on the TSX was Canada Goose Holdings, which jumped $2.38, or 6%, to $42.13, after Cowen & Co upgraded the apparel maker's stock to outperform from market perform.

Lundin Mining rose 25 cents, or 3.5%, to $7.31, after multiple brokerages raised price target of the stock.

OceanaGold fell 24 cents, or 10.6%, the most on the TSX, to $2.02, and the second-biggest decliner was Osisko Mining down nine cents, or 2.5%, to $3.51.

The most heavily-traded shares by volume were The Bank of Nova Scotia, up two cents to $55.46, Canadian Imperial Bank of Commerce, ahead 27 cents to $100.19, and the aforementioned OceanaGold.

On the economic slate, Statistics Canada says the economy climbed during July, with the Gross Domestic Product figure growing 3%, as all 20 industrial sectors increased in the month.

ON BAYSTREET

The TSX Venture Exchange dipped 2.4 points to 710.14.

All but three of the 12 TSX subgroups had sunk midday, as communications fell 1.2%, consumer staples dipped 0.5%, and consumer discretionary slumped 0.4%.

The three gainers were health-care, moving higher 1.2%, real-estate, soaring 0.9%, and information technology, better by 0.4%.

ON WALLSTREET

U.S. stocks climbed on Wednesday, the last day of September, amid rising hopes for further fiscal stimulus. The market is still on track for its first negative month since March.

The Dow Jones Industrial Average took off for the sky midday, gaining 441.87 points, or 1.6%, to 27,894.53.

The S&P 500 recovered 45.33 points, or 1.4%, to 3,380.88.

The NASDAQ popped 171.7 points, or 1.5%, to 11,256.95.

Stocks sensitive to the economic recovery, including airlines, banks and cruise operators, led the market rally on Wednesday. Shares of American Airlines and United climbed more than 2.5% each, while Boeing also rose 2.1%. JPMorgan, Goldman Sachs and Citigroup all gained at least 1%. Norwegian Cruise popped more than 5%.

Positive data regarding a potential coronavirus treatment from Regeneron Pharmaceuticals helped boost sentiment on Wall Street.

Regeneron said after the close Tuesday its REGN-COV2 drug reduced viral levels and improved symptoms in non-hospitalized coronavirus patients.

Still, Regeneron shares had lost some of their mojo by noon hour, falling $10.45, or 1.8%, to $563.16.

Meanwhile, Moderna’s experimental COVID-19 vaccine appears safe and shows signs of working in older adults, according to study results published in the New England Journal of Medicine.

Disney shares lost more than 1% after the company said it would lay off 28,000 people in its theme parks division.

Still, with today’s early gains, major averages are headed for steep losses in September and their first monthly declines since March. The S&P 500 is down 4.7% this month through Tuesday’s close, on pace for its first down month in six. The Dow tumbled 3.4%, and the NASDAQ has fallen 5.9% in September.

U.S. Treasury Secretary Steven Mnuchin struck an optimistic tone about reaching a coronavirus aid deal on Wednesday after the stalemate in Washington dragged on for weeks.

The gains also came after better-than-expected jobs data. ADP’s monthly private-sector jobs count showed growth of 749,000 in September, ahead of the 600,000 expected from a Dow Jones economist survey.

Investors digested the first debate between President Donald Trump and Democratic nominee Joe Biden Tuesday evening, which turned out to be particularly vicious with constant interruptions and insults. Wall Street remained concerned that it will be a drawn-out electoral process that could hit the market.

Prices for the 10-Year Treasury sagged, raising yields to 0.70% from Tuesday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices bumped up 56 cents to $39.85 U.S. a barrel.

Gold prices dropped two dollars to $1,901.10 U.S. an ounce.