Positive futures before Thursday’s session faded as the latest weekly U.S. jobless numbers reported a surprise 1.4 million filing for first-time unemployment benefits. This marks the first increase in 16 weeks and points to a faltering U.S. recovery.
A key reason is that the number of new COVID-19 cases remains high in American states across the south and west including California, Texas and Florida, underscoring how Washington is struggling to tame the pandemic. Reversing course on Wall Street, big tech stocks sold off. Apple fell 4.88% and Amazon shed 3.8%. After the bell Thursday, Intel reported an EPS and revenue beat, but still plunged around 6% in immediate after-hours trading, which replayed Microsoft‘s beat and surprise sell-off 24 hours earlier. Even with strong numbers, tech stocks have suddenly fallen out of favour.
In contrast, Canada continues to stabilize the virus with Ontario, for instance, announcing a dip in new cases and zero deaths. However, the TSX was not immune to the American sell-off. Toronto stocks slipped 0.94%, dragged down by energy and materials. The price of WCS dropped 2.5% (WTI shed around 1.5%). Gold and silver names reversed recent gains. For example, Dundee Precious Metals shed 5%. Other recent high-flyers also plunged, such as Ballard Power by nearly 10%. On the flipside, KeltExploration leapt 9.44% after ConocoPhllips announced buying land from them in a $375 million deal.