NEW YORK (Reuters) – The S&P 500 posted a modest loss and the Nasdaq closed sharply lower on Tuesday as promising news regarding an effective COVID-19 vaccine led investors away from market leaders and toward cyclical stocks associated with economic recovery.
The New York Stock Exchange is pictured in the Manhattan borough of New York City, New York, U.S., November 10, 2020. REUTERS/Carlo Allegri
The blue-chip Dow, buoyed by industrial shares, gained ground and crude oil prices extended the previous session’s surge as investors bet on a demand rebound.
Pfizer Inc PFE.N announced on Monday that its COVID-19 vaccine candidate, developed with German partner BioNTech 22UAy.DE, showed in trials it had a 90% success rate in preventing infection.
The development led to investors taking profits from market-leading tech stocks that have thrived amid the pandemic recession, a sell-off which pulled the tech-heavy Nasdaq deep into red territory.
“Equity markets in the U.S. have experienced the start of a significant rotation following the vaccine announcement,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “It’s been a dramatic change and it’s all in anticipation of returning to some form of economic normalcy once the vaccine has been distributed to the broad population.”
“The caveat is there’s a second wave to the virus that’s infecting a record number of people,” Ghriskey added. “But at least for now the markets are willing to look through that economic pain to better days ahead once the virus has been eradicated.”
Uncertainties from Washington still simmer in the background as President Donald Trump continued to press for investigations of election fraud following his defeat by Democrat challenger Joe Biden.
“The circus going on in DC which is causing concern about a smooth transition of administrations in the months ahead,” Ghriskey said. “The flames coming out of Washington are unrelenting and constant.”
The Dow Jones Industrial Average .DJI rose 262.95 points, or 0.9%, to 29,420.92, the S&P 500 .SPX lost 4.97 points, or 0.14%, to 3,545.53 and the Nasdaq Composite .IXIC dropped 159.93 points, or 1.37%, to 11,553.86.
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European shares extended their gains on lingering vaccine optimism and news that EU negotiators have agreed on a budget, a crucial step toward activating the bloc’s 1.8 trillion euro recovery package.
The pan-European STOXX 600 index rose 0.90% and MSCI’s gauge of stocks across the globe .MIWD00000PUS %.
Emerging market stocks lost 1.16%. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.69% lower, while Japan’s Nikkei .N225 rose 0.26%.
U.S. Treasury yields inched lower on Tuesday in choppy trading, consolidating the previous session’s gains due to economic optimism in the wake of positive news on a potential coronavirus vaccine.
Benchmark 10-year notes US10YT=RR last rose 1/32 in price to yield 0.9561%, from 0.958% late on Monday.
The 30-year bond US30YT=RR last rose 7/32 in price to yield 1.7408%, from 1.751% late on Monday.
Oil prices extended Monday’s surge, which gave the commodity its biggest daily percentage gain in five months, as views of a possible medical solution to the pandemic outweighed sagging demand from new lockdowns to contain the virus.
U.S. crude rose 2.66% to settle at $41.36 per barrel, while Brent settled at $43.61 per barrel, up 2.85% on the day.
The dollar held its ground against a basket of currencies and the yen hovered near three-week lows as the forex markets absorbed Monday’s big moves due to vaccine developments.
The dollar index rose 0.08%, with the euro down 0.05% to $1.1807.
The Japanese yen strengthened 0.08% versus the greenback at 105.30 per dollar, while Sterling was last trading at $1.3249, up 0.65% on the day.
Gold regained some ground lost in Monday’s plunge expectations of fiscal and monetary stimulus offered support to the safe-haven metal.
Spot gold added 0.6% to $1,873.53 an ounce.
Reporting by Stephen Culp; additional reporting by Marc Jones; Editing by Tom Brown
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
