Markets slip on mixed earnings and fading stimulus
A day after Monday’s sell-off, markets stabilized Tuesday, though mixed earnings, the second wave of Covid cases and the unlikelihood of seeing U.S. stimulus before the Nov. 3 presidential vote pushed markets into the red by the close. The Dow shed 0.8%, the S&P lost 0.3% and the TSX slipped 0.36%. Investors fell back on tech as the Nasdaq rose 0.64% and ahead of earnings from mega-tech names this week. Even a rise in WTI prices by 2.2% and 6% for WCS didn’t lift Canadian stocks.
There was a flurry of earnings and acquisitions. Spin Master bought the private company behind Rubik’s Cube and inched up almost 1%. AMD bought rival chipmaker Xilinx for US$35 billion to become a mega-semi-maker. AMD stock fell 4%, but Xilinx soared 8.56%.
Meanwhile, Harley-Davidson roared 22% as its new CEO beat revenues in this surprising turnaround story. Shopify popped 4.32% after announcing an e-commerce deal with the controversial TikTok. From high tech to old power, Teck Resources reported a profit miss, dragged down by the falling price of coal. Teck stock was hit -5.85%. Restaurant Brands‘ Q3 profit beat estimates, but its sales dropped. QSR shares fell 3.8%.