BNN Bloomberg's closing bell update: June 19, 2020
4:15 p.m. ET: North American markets slide on virus flare-up fears
North American equity markets slid in late trading Friday amid concerns over a flare-up of the COVID-19 virus outbreak after Apple announced it would close some locations in Arizona and Florida due to a spike in cases. The S&P/TSX Composite and Nasdaq Composite Index were essentially unchanged, up 0.04 per cent and down 0.03 per cent respectively, while the S&P 500 fell 0.56 per cent and the Dow Jones Industrial Average dropped 0.80 per cent.
In spite of the weakness in late trading, all four major North American indices finished higher on a one-week basis.
In Toronto, seven of the 11 TSX subgroups finished in negative territory, with consumer discretionary, real estate and energy stocks leading the declines. Materials, consumer staples and information technology were the lead gainers on the composite. On a stock-specific basis, the index was almost perfectly split between advancers and decliners, with 114 stocks higher, 113 lower and two unchanged for the day.
Crude oil hung onto gains, with U.S. benchmark West Texas Intermediate up 1.78 per cent to US$39.53 per barrel. Alberta’s Western Canadian Select rose 2.3 per cent to US$30.74 per barrel.
The Canadian dollar was essentially unchanged against its American counterpart to trade at 73.74 cents U.S.
1:10 p.m. ET: North American markets lose ground amid renewed virus fears
North American markets lost ground through the early afternoon amid rising concerns over the spread of the COVID-19 virus.
The S&P 500 and Dow Jones Industrial Average both turned lower, each losing about a third of a per cent, while the S&P/TSX Composite Index hung on to 0.3 per cent gain and the Nasdaq Composite Index held 0.4 per cent higher.
The slide came after Arizona and Florida reported increases in virus cases, which prompted Apple Inc. to announce it will close some stores in the two states.
In Toronto, seven of the 11 TSX subgroups were in negative territory, led lower by real estate, health care and energy. Materials, consumer staples and information technology were the lead gainers on the index.
Oil slipped from its intraday highs, but held onto positive territory. U.S. benchmark West Texas intermediate, which had earlier breached above US$40 per barrel, was trading 1.44 per cent higher at US$39.40 per barrel. Alberta’s Western Canadian Select rose 0.63 per cent to US$30.23 per barrel.
The Canadian dollar was essentially unchanged against its U.S. counterpart to trade at 73.56 cents U.S.
9:30 a.m. ET
North American equity markets kicked off Friday’s trade in positive territory amid some encouraging signs on the U.S.-China trade front.
The S&P/TSX Composite Index rose 0.7 per cent, the S&P 500 gained 1.1 per cent, the Dow Jones Industrial Average was up 1.2 per cent and the Nasdaq Composite rose one per cent to put the tech-heavy basket on track for its sixth straight session of gains.
Risk assets like stocks were in the green after reports emerged China would step up its purchases of American farm goods, potentially easing tensions between the world’s two largest economies. China has previously used farm purchases as a pressure point in its trade feuds with the United States.
In Toronto, all 11 of the TSX subgroups were in positive territory to start the day, with health care, consumer discretionary and materials posting the largest percentage gains. 194 of the index’s 229 constituents were positive to start the day.
Oil prices marched higher, with U.S. benchmark West Texas Intermediate up 3.53 per cent to top US$40 per barrel amid the trade optimism and the economic reopenings of a number of jurisdictions. Alberta’s Western Canadian Select rose 3.43 per cent to US$31.07 per barrel.
The Canadian dollar was modestly higher against its American counterpart, rising a little more than a tenth of a cent to 73.70 cents U.S., though the greenback was broadly weaker against a basket of its major global peers.