TSX Ends Modestly Lower After Lackluster Session

(RTTNews) - Canadian stocks edged lower on Wednesday, dragged down by losses in consumer staples and energy sectors. Wall Street was steady and major European markets moved higher, but TSX stayed in the red almost right through the session with investors looking for direction.

Crude oil futures rebounded after early weakness, but energy stocks largely stayed sluggish. Healthcare, information technology and industrials stocks found some support, while financials and utilities were mostly subdued.

The benchmark S&P/TSX index ended down 41.84 points or 0.25% at 16,477.40, after scaling a high of 16,557.41 and a low of 16,477.40 intraday. On Tuesday, the index ended up 24.51 points or 0.15%.

The capped energy index lost about 0.8%. Canadian Natural Resources (CNQ.TO) declined 1.7% and Cenovus Energy (CVE.TO) ended 1% down, while Enbridge Inc. (ENB.TO) and Crescent Point Energy Corp. (CPG) shed about 1% each.

In the banking space, Royal Bank of Canada (RY.TO) and Canadian Imperial Bank Of Commerce (CM.TO) ended lower by 0.5% and 0.4%, respectively. Toronto-Dominion Bank (TD.TO) and Bank of Nova Scotia (BNS.TO) edged down marginally, while Bank of Montreal (BMO.TO) ended modestly higher.

Alimentation Couche-Tard Inc. (ATD.B.TO) and Metro Inc. (MRU.TO) both declined by 1.5%. Saputo Inc. (SAP.TO) has announced that it has entered into an agreement with Bega Cheese Limited to sell its Koroit plant in Victoria, Australia for about C$244 million or A$250 million in cash. The stock is now up over 5%.

Bombardier Inc. (BBD.B.TO) declined more than 5.7%. Bombardier Commercial Aircraft announced today that it has signed a firm order for four new CRJ900 regional jets with Uganda National Airlines Company.

Aphria Inc. (APH.TO) surged up 8%, riding on news the company has entered into a strategic deal with Scythian Biosciences Corp. as per which, Aphria will acquire Scythian's Latin American and Caribbean assets. Scythian Biosciences Corp (SCYB.TO) gained about 0.8%.

MTY Food Group Inc. (MTY.TO) advanced 1.2% after the company declared a quarterly dividend of 15 cents per share, payable on August 15, 2018 to shareholders registered in the Company's records at the end of the business day on July 31, 2018.

Detour Gold Corporation (DGC.TO) rose nearly 12% after Paulson & Co. Inc. announced that it will move forward with its efforts to replace a majority of the Detour Gold Board of Directors with new highly qualified, independent nominees committed to exploring all strategic alternatives including a potential sale of the Company.

In commodities, Crude oil futures for August delivery ended up $0.68 or 1% at 68.76 a barrel, well off the session's low of $67.04. Oil futures for September delivery tumbled to a low of $66.32 a barrel before rallying to a high of $67.86.

Crude oil futures rebounded to settle modestly higher on Wednesday, extending gains to a second successive session, as concerns over supply disruptions re-emerged on reports that Venezuela's Amuay oil refinery has shut down a distillation unit.

Earlier, oil futures had dropped to a one-month low after data from Energy Information Administration showed a larger than expected 5.8 million barrels jump in US crude inventories in the week ended July 13. The EIA data further revealed that domestic production climbed by 100,000 barrels a day to 11 million barrels a day, the highest weekly level so far.

Meanwhile, gasoline stockpiles declined by 3.2 million barrels for the week and distillate stockpiles dropped by 400,000 barrels, the EIA report showed.

Gold prices dropped to a low of $1,220.90 an ounce, before regaining some lost ground. Still, gold futures for August settled at $1,227.90 an ounce, up $0.60 or 0.05% from previous close.

In economic news from U.S., data released by the Commerce Department showed a steeper than expected pullback in US housing starts in the month of June. The data showed that housing starts plunged by 12.3% to an annual rate of 1.173 million in June, a nine-month low, after jumping by 4.8% to a revised rate of 1.337 million in May. Housing starts were expected to drop by 2.2%.

Meanwhile, building permits fell by 2.2% to an annual rate of 1.273 million in June after tumbling by 4.6% to a rate of 1.301 million in May. Economists had expected building permits to increase by 2.2% in the month.

The Beige book released by the Fed showed that ten of the twelve Fed districts recorded moderate or modest growth, while the Dallas district reported strong growth due to strength in the energy sector and the St. Louis district described growth as slight.

The Fed noted manufacturers across the country expressed concern about tariffs, with many districts citing new trade policies for higher prices and supply disruptions. Overall, prices increased at a modest to moderate pace on average, with several districts reporting upticks in inflation.