Stocks Negative by Wednesday Close

Vermilion, Cineplex Take Body Shots

Canadian stocks were generally lethargic Wednesday, despite bright spots in the macroeconomic picture.

The TSX dropped 90.14 points to greet the closing bell Wednesday at 16,121.38.

The Canadian dollar jumped 0.36 cents to 75.07 cents U.S.

Communications leaned on the rest of the market too heavily Wednesday, as Cineplex bowed 48 cents, or 6.2%, to $7.22, while Corus Entertainment slipped seven cents, or 2.4%, to $2.90.

Energy stocks also faltered, with Vermilion Energy demurring nine cents, or 2.8%, to $3.10, while Tourmaline Oil sank 32 cents, or 1.9%, to $16.26.

Gold stocks also suffered, as OceanaGold swooned 21 cents, or 9.3%, to $2.05, while Torex Gold tumbled 57 cents, or 2.9%, to $18.83.

Real-estate was in the minority among gaining subgroups, units of Killam Apartment REIT surging 51 cents, or 3%, to $17.37, while REAL Matters gained 58 cents, or 2.3%, to $25.94.

Health-care also sparkled, with Bausch Health Companies taking on 76 cents, or 3.8%, to $20.70, while Aphria soared 10 cents, or 1.7%, to $5.90.

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 6.03 points to 706.51.

All but two of the 12 TSX subgroups were lower on the day, as communications fell 1.2%, while energy and gold dumped 1% each.

The two lone gainers were real-estate, soaring 0.9%, and health-care, improving 0.7%.

ON WALLSTREET

U.S. stocks climbed in volatile trading on Wednesday amid rising hopes for further coronavirus stimulus, but major averages still posted their first down month since March.

The Dow Jones Industrial Average vaulted 329.04 points, or 1.2%, to 27,781.70.

The S&P 500 recovered 27.53 points, to 3,363.

The NASDAQ came off its highs of the day, but still gained 82.26 points to 11,167.51.

Still, major averages suffered their first monthly declines since March partly due to a tech-led correction earlier in September. The S&P 500 is down 3.9% this month, while the Dow moved backward 2.3%, and the Nasdaq fell 5.2%, in September.

Stocks cut gains in the final hour of trading after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed to strike a coronavirus aid deal.

The pair will continue talks as they try to craft a fifth package that could pass both chambers of Congress. The market soared earlier in the session after Mnuchin said lawmakers were giving the bill "a serious try."

Stocks sensitive to the economic recovery, including banks and cruise operators, were among the biggest winners on Wednesday. Goldman Sachs gained more than 2%, while Citigroup rose 1.6%. Norwegian Cruise popped more than 3%, and Boeing climbed 1%.

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 their mojo by day’s end, falling $13.83, or 2.4%, to $559.78.

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.

Moderna shares increased in price 23 cents to $70.75.

Disney shares lost $1.32, or 1.1%, to $124.08, after the company said it would lay off 28,000 people in its theme parks division.

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 0.68% from Tuesday’s 0.65%. Treasury prices and yields move in opposite directions.

Oil prices gushed 63 cents to $39.92 U.S. a barrel.

Gold prices dropped $11.40 to $1,891.800 U.S. an ounce.