Canada’s main stock index closed higher in choppy trade on Wednesday, with strong earnings guidance from aviation training specialist CAE lifting the stock, while energy shares got a boost from higher oil prices.
But major U.S. indexes closed lower, with investors waiting for U.S. inflation data due on Thursday for cues on the market’s next move. The U.S Consumer Price Index for July is expected to show a slight acceleration from last year.
The S&P/TSX composite index closed up 69.29 points, or 0.34 %, at 20,275.27.
Shares in CAE jumped 8% after the company said that it was on track to achieve its growth targets. It was the biggest gainer in the index.
Technology company Nuvei Corp, however, slumped 39% after the firm’s quarterly net income more than halved. The stock was the biggest loser in the index.
Heavily weighted energy stocks closed up 1% as oil gained on supply tightness due to recent output cuts by Saudi Arabia and Russia, and after a steep drawdown in U.S. fuel stockpiles. West Texas Intermediate crude gained 39 cents, or 0.5%, to $83.34. The U.S. benchmark touched $84.65, its highest level since November 2022.
Materials stocks added 1% too as copper prices bounced back from one-month lows on hopes of more economic stimulus for China, the top metals consumer, after data showed consumer sector fell into deflation in July.
The Dow Jones Industrial Average fell 191.13 points, or 0.54%, to 35,123.36, the S&P 500 lost 31.67 points, or 0.70%, to 4,467.71 and the Nasdaq Composite dropped 165.93 points, or 1.2%, to 13,718.40.
The losses followed a broad selloff on Tuesday, after credit rating agency Moody’s downgraded several small and mid-sized banks. On Wednesday, big banks extended those losses with Bank of America down 0.8% and Wells Fargo down 1.3%.
Four of the top 11 S&P 500 sectors rose, with energy stocks leading the gain by a 1.22% jump, touching a near six-month high, tracking a jump in crude oil prices.
Casino owner Penn Entertainment’s shares surged 9.1% on a $2 billion deal with Walt Disney’s ESPN to launch a sports betting business.
Walt Disney’s shares dipped 0.7% in regular trading, but were up 5% in post market trading after a mixed earnings release. It also announced plans to raise the price on its streaming service Disney+.
Lyft shares tumbled 10% despite a strong earnings forecast, as the company signaled it would double down on competitive pricing to catch up with rival Uber.
Of the 443 S&P 500 companies that have reported results as of Tuesday, 78.6% beat analyst expectations, according to Refinitiv data.
Volume on U.S. exchanges was 11.06 billion shares, compared with the 10.89 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners. The S&P 500 posted 16 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 60 new highs and 178 new lows.
Reuters, Globe staff
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