A day after several positive headlines, Wednesday markets were choppy, with stocks fading in the final hour of trading. The S&P, Dow and TSX declined by around 0.5% while only the Nasdaq closed positive at 0.15%.
There wasn’t a single catalyst to account for this back-and-forth movement, though news about rising Covid-19 cases in southern U.S. states Texas, Arizona and Florida weighed on some investors who fear a return to a full, nationwide lockdown. However, the bulls strongly doubt that, since only these are particular states being hit and there have been advances in virus treatments.
As usual, tech led gains with stay-at-home stocks like Netflix rallying 2.67% and financials like Bank of America (-3.19%) lagging. Lam Research also gained 2.72%. Industrials and energy also dragged down the Dow. A barrel of WTI slipped 1.82% and WCS declined almost 2.5%. No surprise on the TSX that energy was the worst performer at -4.31%. For example, Birchcliff Energy fell 9.24%. Only materials and industrials showed any life, such as Dundee Precious Metals which popped nearly 7%. Though weed stocks have been climbing back this spring, Hexo plunged nearly 12% after announcing a $25.5 million stock offering. Gold was essentially flat.