Update: TSX Little Changed as Gains in Energy Stocks Overshadowed by Losses in the Cannabis Sector
Canada's main stock market was little changed Wednesday, tracking lower from modest opening gains and following a reversal on Wall Street as risk-off moves were again in the driver's seat. The S&P/TSX Composite Index was up 1 point to close at 15,133. U.S. markets were unable to hold on to early gains, with the Dow Jones losing 200 points or 0.6% and the S&P 500 falling 20 points or 0.6%. The Nasdaq shed 0.9%.
On the TSX, the energy sector led advancers, gaining 1% as oil snapped a record 12-session losing skid, settling at US$56.25 per barrel. Materials were also nearly 1% higher as precious metals increased, with gold up 0.7%. Healthcare led decliners, losing 5% as cannabis stocks fell based on disappointing earnings news from industry leader Canopy Growth. Financials were off 0.2%.
In stock news, Canopy Growth (WEED.TO) fell 11% after reporting wider-than-expected losses in its latest quarter. Loblaw (L.TO) was flat as its adjusted profits beat estimates. Tahoe Resources (THO.TO) jumped 48% after Pan American Silver (PAAS.TO) agreed to buy the Canadian miner in a friendly stock and cash deal valued at $1 billion. Heavily traded Aurora Cannabis (ACB.TO) shed 7% while Bombardier (BBD-B.TO) lost 2%.
There were no economic releases today in Canada. Existing home sales and the Teranet/National Bank home price index are out Thursday. Manufacturing shipments for September are due Friday along with international securities transactions.
The Canadian dollar traded in a narrow range today and was little changed at 75.52 US, down 4 basis points.
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