Canada’s main stock index remained muted on Wednesday, while official data showed the nation’s economy likely contracted again in May, following its first decline in a year in April.
The TSX Composite index faltered 60.13 points to move into noon hour at 20,110.89.
The Canadian dollar nicked forward 0.05 cents to 80.72 cents U.S.
Thursday, markets in Canada will be closed in honour of Canada Day.
Cogeco Communications jumped $4.93, or 4.3%, to $120.04, after unit Atlantic Broadband acquired two service areas from
U.S. broadband provider WOW! Internet, Cable & Phone.
Mullen Group advanced 86 cents, or 7%, to $13.18, after the freight transportation provider agreed to buy QuadExpress, the third-party logistics business of Quad/Graphics.
Tilray came out of its hole, gaining 32 cents, or 1.4%, to $22.49, after brokerage MKM Partners said there are risks surrounding the combined operations of Canadian pot producers Aphria Inc and Tilray Inc that can offset some obvious benefits.
Aurinia Pharmaceuticals re-strengthened 13 cents to $16.34.
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 1.81 points to 948.60.
Seven of the 12 TSX subgroups were still in the red by midday, as information technology dwindled 0.9%, real-estate slid 0.7%, and industrials lost 0.6%.
The five gainers were led by health-care, jumping 0.9%, energy, 0.6% more energetic, and gold, 0.5% brighter.
ON WALLSTREET
U.S. stocks churned near record highs on Wednesday as the market gets set to close out a winning first half and second quarter of 2021.
The Dow Jones Industrials vaulted 140.13 points midday to 34,432.42.
Walmart, Boeing and Chevron were some of the biggest movers in the Dow on Wednesday, helping the industrial-focused average outperform the broader indexes.
The S&P 500 added 3.24 points to Tuesday’s record, registering at 4,295.04,
The NASDAQ docked 19.67 points from Tuesday’s all-time high, at 14,508.67.
Big Tech shares including Apple and Facebook were mixed in early trading Wednesday
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.
Homebuilder stocks rose Tuesday after S&P CoreLogic Case-Shiller published its National Home Price Index, which showed home prices rose more than 14% in April from the previous year.
Pending home sales also jumped in May to their highest level since 2005. However, mortgage demand fell last week, the Mortgage Bankers Association said Wednesday, with high prices and low supply appearing to squeeze out some potential buyers.
Elsewhere, the Instituted for Supply Management’s Chicago purchasing managers index came in lower than expected for June but still showed expansion.
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 29 cents to $73.27 U.S. a barrel.
Gold prices recovered $3.30 to $1,766.90 U.S. an ounce.