Update: TSX Down for Second Straight Day, Dragged Down by Energy Stocks as Crude Oil Prices Fall
Canada's main stock market was weaker in the midweek trading session. Positive earnings news gave an early boost to equities but gains faded through the day, leaving the S&P/TSX Composite Index down 25 points or 0.2% to 15,208. The TSX lost 120 points on Tuesday, snapping a 12-session winning streak. South of the border, the Dow Jones rose 170 points today while the Nasdaq and S&P 500 were modestly higher.
On the TSX, the three main sectors were weaker, led by energy, which fell 1.2% on lower crude prices while financials lost 0.4% and materials were down -0.2%. Consumer discretionary shares led gainers, rising nearly 2%. Tech stocks were up 1%.
In stock news , heavily traded Aurora Cannabis (ACB.TO) edged down 0.5%, Royal Nickel (RNX.TO) dropped 6% while Cenovus Energy (CVE.TO) was down 2%. Aphria (APHA.TO) was off 2% after Green Growth Brands formally filed its unsolicited offer to buy the cannabis company for about $2.3 billion. Restaurant Brands International (QSR.TO) jumped 9% after reporting stronger same store sales and an executive shuffle.
In economic news, retail sales fell 0.9% in November after the 0.2% gain in October (revised from +0.3%). The ex-autos sales aggregate contracted 0.6% in November after 0.2% decline in October (revised from 0.0%). The total and ex-autos sales declines outpaced expectations and were driven by a 5.0% drop in gasoline station sales (due to lower prices) and a 1.8% loss at motor vehicle and parts dealers. Retail sales volumes fell 0.4% in November, joining the 0.9% decline in manufacturing sales volumes and a 1.2% fall in wholesale shipment volumes. Action Economics has maintained its projection for November GDP to decline 0.1% (m/m) after the 0.3% bounce in October. BoC Governor Poloz was interviewed on Bloomberg TV, but he said nothing new.
The Canadian dollar was little changed, up 5 basis points to 74.93 US.
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