TORONTO — Canada's main stock index moved lower Wednesday, weighed down by losses in base metals, while U.S. markets reversed earlier gains to end in the red.
U.S. markets grappled with mixed economic data and mixed corporate earnings, said Michael Currie, senior investment adviser at TD Wealth.
The latest report on the U.S. economy showed growth slowed during the summer, but was still healthy, while another report showed non-government employers accelerated hiring this month.
“We’re in a period where good news is good news, which isn’t always the case,” said Currie.
But with economic reports telling differing stories and more earnings coming after the bell, investors may have got nervous as the day wore on, he said.
In New York, the Dow Jones industrial average was down 91.51 points at 42,141.54. The S&P 500 index was down 19.25 points at 5,813.67, while the Nasdaq composite was down 104.82 points at 18,607.93.
The S&P/TSX composite index closed down 54.76 points at 24,507.79.
Alphabet reported strong earnings after the bell Tuesday and saw its stock rise almost three per cent Wednesday as a result.
Artificial intelligence, a core focus for investors this year, continues to pay off for Google’s parent company, said Currie.
“Pretty much everything you could want out of a stock today, they reported,” he said.
But for chipmaker AMD, earnings this quarter only matched expectations in an era where companies set to benefit from AI have been handily beating forecasts. The company also gave a revenue outlook that missed analysts’ estimates.
With semiconductor giant Nvidia dominating the space, “not everyone is a winner in the AI space,” said Currie.
“If you take Nvidia out of the semiconductor index, it’s really not doing much at all.”
Visa reported strong earnings, showing continued resilience in consumer spending, while drugmaker Eli Lilly reported weaker results than expected and saw its stock fall more than six per cent.
Thanks to the hype around their weight-loss and diabetes drugs, the company has had a strong couple of years and continues to do well, said Currie, but this time it didn’t meet the high expectations of investors.
The Canadian dollar traded for 71.86 cents US compared with 71.89 cents US on Tuesday.
The December crude oil contract was up US$1.40 at US$68.61 per barrel and the December natural gas contract was down a penny at US$2.85 per mmBTU.
The December gold contract was up US$19.70 at US$2,800.80 an ounce and the December copper contract was down a penny at US$4.35 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Oct. 30, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
Rosa Saba, The Canadian Press
