Stocks Give up Gains Amid Inflation

A topsy-turvy day ended firmly in negative country for stocks on both sides of the border, as investors tried to make sense of hot new inflation numbers out of the U.S.

The S&P/TSX Composite turned negative in the last hour and lost 52.81 points to conclude Wednesday at 19,387.25.

The Canadian dollar managed to gain 0.2 cents at 76.94 cents U.S.

Consumer discretionary stocks weighed the market down heaviest, as Canadian Tire sagged $7.10, or 4.2%, to $164.00, Spin Master slipped $1.70, or 3.9%, to $41.74.

Cannabis concerns pointed south, with Aurora Cannabis toppling 41 cents, or 12.1%, to $2.98, while Canopy Growth fell 59 cents, or 8.3%, to $6.50.

Tech stocks also took some blows, with HUT 8 Mining skidding 44 cents, or 12.1%, to $3.19, while Dye & Durham got rid of $1.31, or 9%, to $13.25.

Energy stocks tried to make up for the downward trend, with … Read more

USD / CAD – Canadian Dollar Flirting with Support

– Canadian dollar sinks deeper overnight

– US stock futures bounce from overnight low rather tepid

– USD adds to gains compared to Monday’s open

USDCAD Snapshot: open 1.3003-07, overnight range 1.2985-1.3035, previous close 1.3014, WTI open $101.45, Gold open $1,857.95

The Canadian dollar sank as investors clamored for US dollars, continuing the trend from Monday.

The USDCAD rally from May 5, accelerated on the break above 1.2910 yesterday and continued unabated until hitting major resistance at 1.3035 overnight. That resistance is the 38.2% Fibonacci retracement level of the entire pandemic range of 1.2020-1.4640. If the level contains gains, a break below 1.2700 will shift the focus to 1.2450.

However, Canadian dollar direction is highly correlated with the S&P 500 index. The Canadian dollar sinks when the S&P 500 sinks and the index is underwater. Stock traders have finally realized that the post-pandemic era of ultra-easy money is over.

Inflation … Read more

Disastrous Monday Comes to Negative End

The troubles for equity markets the world over refused to end Monday, as energy and health-care stocks weighed on markets in Canada.

The S&P/TSX Composite collapsed 633.59 points, or 3.1%, to end a volatile Monday session at 19,999.69.

The Canadian dollar dumped 0.51 cents at 76.89 cents U.S.

Energy stocks took the biggest body blows, with Vermilion Energy stumbling $3.83, or 13.9%, to $23.61, while Tamarack Valley dumped 66 cents, or 13.1%, to $4.37.

Health-care stocks also took it on the chin, with Aurora Cannabis sliding 30 cents, or 8.3%, to $3.30, while Bausch Health Companies off $3.87, or 18.7%, to $16.82.

In materials, Lithium Americas suffered the most, $3.51, or 11.1%, to $28.09, while Nutrien sagged $12.85, or 9.6%, to $120.83.

Only consumer staples kept things from being unanimous, as Loblaw advanced $4.75, or 4.3%, to $116.51, while Jamieson Wellness captured $1.16, or 3.6%, to $33.70.

In things macroeconomic, … Read more