Markets fade on early gains
Wednesday’s bounce faded soon after the opening bell Thursday as the bears started selling. No, it wasn’t another rout, but the TSX closed -1.21% and the American indices fared worst, especially the Nasdaq which finished -1.99%. Also of note, volumes rose towards the end of the session, which doesn’t auger well for Friday.
Nagging U.S. investors is the ongoing delay of the passage of the fifth stimulus bill as Senate Republicans failed to advance it, and a rise in American jobless claims, indicating that the labour market in the States is stalling. All the Dow components were down. In tech, Apple sank 3.32% and in health Unitedhealth Group slipped 2.38%. One of the few bright spots on Wall Street was Restoration Hardware which soared 20% after beating earnings and revenues.
Likewise on Bay Street, Empire rallied 4.26% after topping Q1 sales. Cargojet climbed 3.39% and ATS Automation Tooling rose 5.62% both in heavy trading. In contrast, Air Transat announced that its revenues plunged 99% in the last quarter and is begging Ottawa for help and openly seeking financing. The airline’s woes casts doubt on the pending Air Canada acquisition. Transat declined only 1.78% for the day, but the stock stands at a third of its 52-week high. Lastly, U.S. crude oil inventories rose for the first time in seven weeks, sending oil stocks down. Canadian energy closed -2.21% and the price of WCS lost more than 2%.