American Market News


Negative Noon Hour for TSX


Turquoise Hill, Frontera in Focus

Dec 9 2019 12:21 pm EST


Canada''s main stock index dipped on Monday on weak data from China, though a jump in healthcare stocks led by Canopy Growth limited losses.

The TSX Composite Index fell 45.44 points to drift into noon hour at 16,951.53

The Canadian dollar inched up 0.11 cents to 75.58 cents U.S.

Canopy Growth jumped $3.10, or 12.5%, to $27.82, and was the biggest percentage gainer on the TSX, after the company named Constellation Brands Chief Financial Officer David Klein as its chief executive officer, effective Jan. 14.

Turquoise Hill Resources fell four cents, or 5.1%, the most on the TSX, to 75 cents, while the second biggest decliner was Frontera Energy, which fell 19 cents, or 2.1%, to $8.81.

On the economic slate, Statistics Canada said building permits decreased 1.5% to $8.3 billion in October. The agency said declines were reported in five provinces, with the largest decrease in British Columbia (-21.2% to $1.3 billion).

Canada Mortgage and Housing Corporation reported that housing starts in Canada were 219,047 units last month, compared to 218,253 units in October, according to Canada Mortgage and Housing Corporation.

This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates of housing starts.

ON BAYSTREET

The TSX Venture Exchange slid 1.2 points to 536.62

In Toronto, eight of the 12 subgroups remained in the red, with industrials down 0.9%, consumer discretionary stocks faltering 0.6%, and financials sliding 0.5%.

The four gainers were led by health-care, sprinting 3.6%, while energy and information technology each cleared breakeven by 0.1%.

ON WALLSTREET

The Dow Jones Industrial Average fell slightly on Monday as investors took a pause after a sharp rally in the previous session.

The 30-stock index doffed 65.89 points to 27,949.17, and was headed for its first decline in four days. Boeing, down 1.1%, and Apple, off 1.7%, weighed the Dow lower.

The S&P 500 demurred 1.79 points to 3,144.12

The NASDAQ skidded 4.12 points to 8,652.41. The communication services sector led the S&P 500''s small gains, rising 0.4%. Alphabet lifted the NASDAQ, climbing 1.1% to a fresh record high.

In corporate news, Sanofi will acquire biotech company Synthorx for $2.5 billion, or $68 per share. The acquisition price represents a 172% premium from Synthorx''s close of $25.03 on Friday. The deal is expected to close in the first quarter of next year.

Virgin Galactic shares jumped more than 12% after an analyst at Morgan Stanley initiated them with an overweight rating, citing the company''s potential to disrupt the airline industry.

During Monday''s session, investor focus turned back to the prospect of a limited trade agreement between the U.S. and China, with less than a week to go before Washington is set to impose even more tariffs on Chinese goods.

China Assistant Commerce Minister Ren Hongbin said Monday the country hopes to make a deal with the U.S. “as soon as possible.” Ren''s comment came after data showed Chinese exports fell for a fourth straight month in November, potentially increasing pressure on China to make a deal.

Prices for the 10-Year U.S. Treasury gained ground, lowering yields to 1.82% from Friday''s 1.84%. Treasury prices and yields move in opposite directions.

Oil prices remained negative 13 cents at $59.07 U.S. a barrel.

Gold prices nicked ahead 60 cents to $1,466.70 U.S. an ounce.