Stocks Cave in by Noon

Canada’s main stock index fell on Wednesday, with precious metal miners and utility stocks leading the declines, as bond yields rose after U.S. private payrolls data suggested resilient demand for labour.

The TSX Composite had lost 215.65 points, or 1.1%, to pause for lunch Wednesday at 19,155.34.

The Canadian dollar slumped 0.99 cents to 73.16 cents U.S.

Real-estate issues weighed most heavily, as Artis Real Estate Investment Trust units blundered 48 cents, or 4.9%, to $9.36, while CT REIT backpedaled 55 cents per unit, or 3.5%, to $15.03.

Health-care also suffered, as Canopy Growth retreated 16 cents, or 3.8%, to $4.08, while Chartwell Retirement Residences fell back 35 cents, or 3.7%, to $9.15.

Energy showed some promise, though, as NuVista moved ahead 34 cents, or 3%, to $11.56, while Secure Energy Services advanced 29 cents, or 4.7%, to $6.51.

On the economic slate, Statistics Canada announced building permits increased 11.9% in August to $12.5 billion. Both the residential sector (+12.0% to $8.4 billion) and non-residential sector (+11.8% to $4.0 billion) saw strong gains, with Ontario causing much of the increase.

Also in August, Canada’s merchandise exports decreased 2.9%, while imports fell 1.7%. As a result, Canada’s merchandise trade surplus with the world narrowed from $2.4 billion in July to $1.5 billion in August. This is the lowest monthly trade surplus observed to date in 2022.

ON BAYSTREET

The TSX Venture Exchange stumbled 8.6 points, or 1.4%, by noon hour to 614.63.

All but one of the 12 TSX subgroups remained in the red, as real-estate tumbled 2.6%, health-care slipped 2.5%, and utilities fell 0.9%.

Only energy held out against the tide, gaining 0.7%.

Ballard Power collapsed 61 cents, or 6.5%, to $8.73 after Citigroup cut price target on its U.S.-listed shares.

Dye & Durham slid 40 cents, or 2.4%, to $16.23 after it pitched a $825.37-million U.S. bid for Australia’s Link Administration.

ON WALLSTREET

U.S. stocks fell on Wednesday, giving back some of its sharp gains from the last two sessions as Treasury yield rose.

The Dow Jones Industrials lost 270.95 points from Tuesday’s lofty perches to greet noon EDT at 30,045.37.

The S&P 500 docked 44.95 points, or 1.2%, to 3,745.98.

The NASDAQ Composite dropped 188.95 points, or 1.7%, to 10,987.46.

Lumen is down more than 10% after Wells Fargo downgraded the tech company’s rating to equal weight from overweight.

Analyst Eric Luebchow said its mass market segment, referred to as RemainCo, was struggling and warned downsides could put dividends at risk. He cut earnings before debt, interest, taxes and amortization forecasts for RemainCo to $5.9 billion, about $600 million below Wall Street estimates.

Private payrolls increased by 208,000, ADP said in its latest report, topping a Dow Jones estimate. Traders are still looking ahead to Friday’s release of the nonfarm payrolls report.

The U.S. trade deficit fell slightly more than expected in August to its lowest level in more than a year, the Bureau of Economic Analysis reported Wednesday.

The trade shortfall declined to $67.4 billion, a $3.1 billion drop from the previous month that was a bit better than the Dow Jones estimate of $67.7 billion. That marked the lowest level since May 2021. In March 2022, the deficit had hit a record $106.9 billion.

Treasury prices stumbled, raising yields to 3.78% from Tuesday’s 3.64%. Treasury prices and yields move in opposite direction.

Oil prices recovered $1.54 to $88.06 U.S. a barrel.

Gold prices faltered $13.40 to $1,717.10 U.S. an ounce.

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