Canada’s main stock index opened lower on Wednesday as mining stocks fell, while official data showed the nation’s economy likely contracted again in May, following its first decline in a year last month.
The TSX Composite index dipped 2.32 points to begin the mid-week session at 20,168.70.
The Canadian dollar gained 0.18 cents to 80.84 cents U.S.
Thursday, markets in Canada will be closed in honour of Canada Day.
RBC raised the target price on Alimentation Couche-Tard to $57.00 from $56.00. Couche-Tard ballooned $1.83, or 4.2%, to $45.85.
National Bank of Canada cut the price target on Canadian National Railway to $140.00 from $143.00. CN shares deducted 55 cents to $131.27.
TD Securities cut the rating on Labrador Iron Ore Royalty to hold from buy. Labrador Iron Ore shares gained 36 cents to $46.96.
On the economic beat, Statistics Canada said its raw materials price index increased 3.2% on a monthly basis in May and was up 40.1% year-over-year, while its industrial product price index rose 2.7% month-over-month in May and was up 16.4% compared with May 2020.
The agency also reported that real gross domestic product contracted 0.3% April, the first decline in 12 months, as 12 of 20 industrial sectors were down.
The Senate on Tuesday adopted Prime Minister Justin Trudeau’s government’s budget bill, the final step in extending COVID-19 supports through the summer and ahead of a likely election in the fall.
ON BAYSTREET
The TSX Venture Exchange nosed ahead 1.52 points to 948.31.
Eight of the 12 TSX subgroups plunged in the first hour, as health-care lost 1.2%, real-estate faltered 0.7%, and utilities slid 0.6%.
The four gainers were led by energy, up 1.4%, consumer staples, ahead 1.1%, and materials, better by 0.4%.
ON WALLSTREET
U.S. stocks churned near record highs on Wednesday morning as the market gets set to close out a winning first half and second quarter of 2021.
The Dow Jones Industrials vaulted 133.44 points to begin Wednesday at 34,425.73.
The S&P 500 added 5.22 points to Tuesday’s record, registering at 4,297.02,
The NASDAQ docked 12.15 points from Tuesday’s all-time high, at 14,516.18.
Wednesday is the last day of the second quarter and final day of the first half of 2021. So far on the year, the S&P 500 is up 14%, while the NASDAQ Composite and the Dow have gained 12% apiece. For the quarter, the S&P 500 is up 8%. The S&P 500 and NASDAQ all posted fresh record closes on Tuesday.
The S&P 500 is headed for its fifth positive month in a row, rising 2.1% to 4,291.80 in June. The broad index is also on track for its best first half since 2019.
The three biggest winners in the Dow this year so far are Goldman Sachs, American Express and Walgreens Boots Alliance, all up more than 30%. Chevron, Microsoft and JPMorgan Chase are up more than 20% each. The tech and health care sectors of the S&P 500 both closed at records Tuesday.
The gains came as nearly 60% of U.S. adults have received a COVID-19 vaccine, allowing the economy to open back up at a rapid pace. Still, new variants of the virus have raised some concerns that more restrictions such as mask wearing would have to be reinstituted because the pace of vaccinations has slowed.
Big Tech shares including Apple and Facebook were mixed in early trading Wednesday. The Wall Street Journal is reporting that the Biden administration is working on an executive order that would direct government agencies to increase scrutiny of industries where a few companies are dominant. It’s the latest in a series of moves by President Biden to rein in the power of big business, especially in the tech industry.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.44% from Tuesday’s 1.48%. Treasury prices and yields move in opposite directions.
Oil prices gained 72 cents to $73.70 U.S. a barrel.
Gold prices dumped $1.10 to $1,762.50 U.S. an ounce.