BNN Bloomberg's closing bell update: June 1, 2020
North American equity markets clawed back ground into the close of Monday's trade, with the S&P/TSX Composite Index up 0.29 per cent, the S&P 500 gaining 0.38 per cent, the Dow Jones Industrial Average rising 0.36 per cent and the Nasdaq Composite Index up 0.66 per cent.
Equity markets had been mixed in earlier trading, as investors weighed the competing factors of economic reopenings and the rising tensions between the United States and China.
In Toronto, four of the 11 TSX subgroups closed in positive territory, with consumer discretionary, financials and materials leading the way. Consumer staples, information technology and health care were the lead laggards.
A big part of the weakness in health care stocks was the underperformance of Canopy Growth Corp., which finished the day as the worst performer on the index after a string of analyst downgrades. The analyst community has expressed concerns over the company's lack of a clear path to sustained profitability after it withdrew its forecast last week.
Oil prices fluctuated throughout the day, with U.S. benchmark West Texas Intermediate up 0.1 per cent to US$35.53 per barrel. Alberta's Western Canadian Select was up 3.16 per cent to US$29.08 per barrel.
The Canadian dollar gained more than a full cent against its U.S. counterpart to trade at 73.68 cents U.S., though the greenback was weaker against all of its major-market peers.
1:00 p.m. ET: North American equity markets rebound, oil pares losses
North American equity markets rebounded into the midday trade, with the S&P/TSX Composite Index and Dow Jones Industrial Average up 0.3 per cent each, the S&P 500 gaining 0.4 per cent and the Nasdaq Composite Index up 0.66 per cent.
In Toronto, only four of the 11 TSX subgroups were in positive territory, led by consumer discretionary, financials and materials stocks. Information technology, consumer staples and health care were the lead laggards.
120 of the index's 230 members were higher with a pair of cannabis stocks bookending the composite. HEXO Corp. was the lead gainer on the TSX, up 10 per cent after Health Canada approved its facility in Bellville, Ontario. On the flip side, Canopy Growth Corp., was the biggest percentage loser, down nine per cent, after a slew of analyst downgrades after the company shelved its forecast for a path to profitability late last week.
Oil pared some of its earlier losses, with U.S. benchmark West Texas Intermediate down a little more than one-and-a-half per cent to trade at US$34.90 per barrel. Alberta's Western Canadian Select was essentially unchanged at US$28.16 per barrel.
10 a.m. ET - North American stocks slip, oil falls as U.S.-China tensions escalate
North American equity markets kicked off the week in modestly negative territory, with the S&P/TSX Composite Index down a tenth of a per cent, the Dow Jones Industrial Average and S&P 500 both falling 0.4 per cent and the Nasdaq Composite Index down 0.2 per cent.
Markets were under that modest pressure amid signs of a re-escalation of tensions between the United States and China, with Bloomberg News reporting Beijing has ordered a halt to imports of some American farm goods. Meanwhile, the U.S. is also facing a wave of civil unrest as demonstrators take to the streets to protest the killing of George Floyd by Minneapolis police, which has prompted some American cities to implement curfews.
Oil prices fell in the wake of those tensions, outweighing the impact of speculation the OPEC+ group of producers could be poised to implement a short extension of its output cuts in order to put some upward pressure on crude prices. U.S. benchmark West Texas Intermediate fell 2.5 per cent to US$34.60 per barrel, while Alberta’s Western Canadian Select dropped three per cent to US$27.34.
In Toronto, that weakness in crude weighed on the energy sector in early trading.
Another point of weakness was Canopy Growth Corp. The company’s shares fell about seven per cent after the firm was downgraded by four analysts following the cannabis producer’s disappointing quarterly results late last week.
The Canadian dollar rose a third of a cent against its American counterpart to 72.93 cents U.S., though the U.S. dollar was broadly weaker against its major global peers.