May 11, 2020
North American markets bounce off the lows, closed mixed to start the week
, BNN Bloomberg
BNN Bloomberg's closing bell update: May 11, 2020
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4:15 p.m. ET: North American markets bounce off the lows, closed mixed to start the week
North American equity markets bounced off session lows to close out Monday trading largely in positive territory. The S&P/TSX Composite Index rose 0.91 per cent, the Nasdaq Composite Index was up 0.78 per cent, the S&P 500 was essentially unchanged at 0.01 per cent higher and the Dow Jones Industrial Average fell 0.45 per cent.
Information technology stocks on both sides of the border helped push stocks higher as investors analyzed the impact of stay-at-home directives on the overall economy. In Toronto, eight of the 11 TSX subgroups were higher, led by the aforementioned infotech stocks, consumer staples and utilities. Only materials, real estate, and health care finished the session lower.
Oil had a volatile day, with U.S. benchmark West Texas Intermediate swinging between positive and negative territory, capping off the day essentially unchanged at US$24.75 per barrel. Alberta’s Western Canadian Select traded modestly higher, at US$21.69 per barrel.
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1:00 p.m ET: North American markets mixed into midday trading
North American equity markets were mixed into midday trading, with the S&P/TSX Composite and Nasdaq Composite Index both up about 0.7 per cent, while the S&P 500 and Dow Jones Industrial were in the red, albeit by extremely small margins.
In Toronto, eight of the 11 TSX subgroups were in positive territory, led by information technology, energy and consumer staples. Only the materials, health care and real estate sectors were lower.
Crude oil sunk back into negative territory, with U.S. benchmark West Texas Intermediate falling a little more than one per cent to US$24.50 per barrel. Crude had been lifted earlier in the session after Saudi Arabia announced unilateral measures to cut a further million barrels per day worth of production in a bid to bring oil markets closer to balance.
Alberta’s Western Canadian Select held on to positive territory, up two per cent to US$21.45, though Canadian crude is only priced a handful of times per day.
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9:30 a.m. ET: North American equity markets slip in early trading
North American equity markets kicked off the week lower, with the S&P/TSX Composite Index down 0.4 per cent, the S&P 500 and Dow Jones Industrial Average slipping about 0.8 per cent, and the Nasdaq Composite Index shedding 0.6 per cent.
The move lower follows a drop in European indices as investors digest the impact of the COVID-19 outbreak.
The TSX’s slide threatens to break the five-day winning streak the composite has posted, the longest stretch of gains since January.
Crude oil pushed into positive territory after Saudi Arabia said it would unilaterally cut an additional 1 million barrels per day amid demand destruction stemming from the virus outbreak. OPEC and its partners instituted cuts at the start of May in a bid to try to bring the market back to balance after a price war between the Saudis and Russia.
The Canadian dollar slid against its U.S. counterpart, falling three-tenths of a cent to 71.50 cents U.S., though the American dollar was broadly higher against its major counterparts.
