Stocks Flat by Noon

·3 min read

Canada's main stock index was little changed on Wednesday as gains in miners countered a plunge in energy stocks due to weaker crude prices.

The TSX Composite index gained 19,.54 points to open the mid-week session at 20,385.39

The Canadian dollar picked up 0.05 cents to 79.84cents U.S.

Sleep Country Canada Holdings jumped $4.79, or 6.8%, to $33.24, after posting upbeat second-quarter earnings.

Colliers International Group rose 65 cents to $162.22.

Crescent Point Energy docked 69 cents, or 6%, to $4.52, and Vermilion Energy was down 41 cents, or 4.5%, to $8.79.

On the economic slate, Statistics Canada reported the total value of building permits rose 6.9% to $10.3 billion in June.

The agency added seven provinces contributed to the gain, led by Ontario, which jumped 22.7%. Construction intentions in the residential sector were up 9.1%, while the non-residential sector advanced 2.2%.

ON BAYSTREET

The TSX Venture Exchange gave back 1.09 points to 927.09.

All but three of the 12 TSX subgroups were lower, with energy off 2.4%, health-care backpedealing 1.4%, and real-estate 0.3%.

The three gainers were financials, picking up 0.7%, consumer discretionaries, ahead 0.3%, and information technology, inching up 0.1%.

ON WALLSTREET

The Dow Jones Industrials took the “down” elevator 275,99 points to 34,840.61, after a sharp rise on Tuesday

The S&P 500 faltered 15.51 points to 4,407.51, from Tuesday’s all-time closing high.

The NASDAQ eked higher 8,72points to 14,766.06.

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Shares of General Motors fell about 7% in early trading, weighing on the broader market, after the automaker missed earnings expectations for the second quarter. The automaker did raise its guidance for a key profit metric for the rest of the year.

A strong earnings season continued after the bell Tuesday with Caesars Entertainment reporting stronger-than-expected results for the second quarter and citing a rebound to pre-pandemic levels of activity. Travel stocks MGM Resorts, Wynn Resorts and Booking Holdings will report after the bell on Wednesday.

Energy stocks struggled in early trading Wednesday, reversing a strong performance in the previous session. Shares of Lyft and Amgen also slid despite beating headline estimates in their quarterly reports

Meanwhile, shares of Robinhood surged more than 60%, continuing a volatile jump after last week’s soft initial public offering.

The ADP private payroll survey showed a gain of 330,000 jobs for July, well short of the consensus estimate of 653,000. The U.S. Labor Department’s official jobs report, which typically has more impact with investors, will be released on Friday.

The labour market readings come as the delta variant of COVID-19 has spread across the U.S., leading to new restrictions and mandates from some companies and local governments.

Treasury Secretary Janet Yellen will say on Wednesday that enacting the trillion-dollar bipartisan infrastructure bill is key to keeping America’s status as the "world’s pre-eminent economic power." Her comments come as investors await the final details of the bill, over which the Senate is currently haggling.

Prices for 10-Year Treasurys were lower, raising yields to 1.19% from Tuesday’s 1.18%. Treasury prices and yields move in opposite directions.

Oil prices faltered $2.42 to $68.14 U.S. a barrel.

Gold prices dropped 80 cents to $1,813.30 U.S. an ounce.


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