Stocks fell Wednesday, with each of the S&P 500 and Nasdaq posting their largest one-day declines since March 18 as coronavirus concerns continued to weigh on investors.
The S&P 500 ended 4.41% lower Wednesday, it’s largest single-day decline since its 5.18% sell-off two weeks ago. The Dow dropped 4.44%, or 973 points, for its largest percentage decline in eight sessions, and largest point decline in two weeks.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the U.S., officials’ outlooks around the coronavirus outbreak have grown increasingly somber, as the case count topped 100,000 – comprising around one-fifth of known global cases – and the death toll rose about 3,000. During a White House briefing Tuesday evening, President Donald Trump said Americans should prepare for what is going to be “a very painful two weeks” as the pandemic paces toward a peak in the U.S. Based on new White House projections, the death toll could reach up to 240,000 domestically.” data-reactid=”19″>In the U.S., officials’ outlooks around the coronavirus outbreak have grown increasingly somber, as the case count topped 100,000 – comprising around one-fifth of known global cases – and the death toll rose about 3,000. During a White House briefing Tuesday evening, President Donald Trump said Americans should prepare for what is going to be “a very painful two weeks” as the pandemic paces toward a peak in the U.S. Based on new White House projections, the death toll could reach up to 240,000 domestically.
During a press conference Wednesday, New York governor Andrew Cuomo said the state – the domestic epicenter of the outbreak – would likely see a high death rate through July.
Each of the three major indices suffered stunning declines during the first three months of this year as the coronavirus outbreak escalated globally, triggering widespread stay-at-home orders, effectively shutting down travel-related industries and grinding a myriad other business operations to a halt.
As of market close Tuesday, the last day of the quarter, the S&P 500 was down 20%. The Dow fell 23.2% and the Nasdaq dropped 14.18%, with the latter’s declines cushioned relative to the other indices as investors bought into big tech names. The Information Technology sector was the leader in the S&P 500 for the first quarter, followed by the Health-Care sector.
The Energy sector, meanwhile, was the S&P 500’s biggest laggard, dropping 51% for the year to date. This coincided with a precipitous decline in crude oil prices, with domestic West Texas Intermediate posting its single largest quarterly and monthly declines on record, settling more than 66% lower for the year to date on Tuesday. Saudi Arabia has vowed to hike its oil output to a record in April, further applying downward pressure to prices on the supply side while the coronavirus simultaneously drags down energy demand.
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4:05 p.m. ET: Stocks post worst decline in two weeks
Stocks ended Wednesday’s session sharply lower, with the S&P 500 and Nasdaq posting their biggest one-day drops in two weeks.
Here were the main moves in markets at the end of regular equity trading:
S&P 500 (^GSPC): -114.09 points (-4.41%) to 2,470.5
Stocks dropped with less than an hour to go of the regular trading session, adding to earlier losses.
Boeing led declines in the Dow, with shares off nearly 12%. American Express shed 8.6%.
Here were the main moves in U.S. equity markets, as of 3:26 p.m. ET:
S&P 500 (^GSPC): -125.40 points (-4.85%) to 2,459.19
Dow (^DJI): -1,006.61 points (-4.59%) to 20,910.55
Nasdaq (^IXIC): -362.53 points (-4.7%) to 7,337.56
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3:00 p.m. ET: Crude oil prices settle lower, extending March declines as Trump reportedly set to meet with energy CEOs
U.S. West Texas intermediate futures settled 0.8% lower to $20.31 per barrel on Wednesday, extending losses after the commodity’s worst one-month and one-quarter price drop on record.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. producers have recently continued to pump huge volumes of crude despite an existing supply glut and demand challenges. Crude inventories rose 13.8 last week, according to the Energy Information Administration’s latest weekly report.” data-reactid=”46″>U.S. producers have recently continued to pump huge volumes of crude despite an existing supply glut and demand challenges. Crude inventories rose 13.8 last week, according to the Energy Information Administration’s latest weekly report.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, the Wall Street Journal reported Wednesday that President Donald Trump is expected to meet with CEOs of companies including Exxon Mobil, Chevron and Occidental Petroleum on Friday to discuss potential government efforts to combat impacts of the oil price slump.” data-reactid=”47″>Meanwhile, the Wall Street Journal reported Wednesday that President Donald Trump is expected to meet with CEOs of companies including Exxon Mobil, Chevron and Occidental Petroleum on Friday to discuss potential government efforts to combat impacts of the oil price slump.
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12:37 p.m. ET: Stocks extend losses
Here were the main moves in markets, as of 12:37 p.m. ET:
S&P 500 (^GSPC): -102.18 points (-3.95%) to 2,482.41
12:04 p.m. ET: ‘I need to see stress in the credit markets ease’ before calling a market bottom, strategist says
As the coronavirus outbreak forces many businesses to halt operations, draw down their credit lines and scramble for capital, at least one strategist said the credit market will provide the first signal of whether the market has hit its bottom and is heading toward a recovery.
“I need to see the stress in the credit markets ease, particularly in the high yield,” Quincy Krosby, chief market strategist for Prudential Financial, told Yahoo Finance’s The First Trade Wednesday.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In March, more than $92 billion in debt was downgraded to high yield from investment grade among 11 companies, according to CreditSights data cited by Bloomberg. The rating declines largely reflected a deterioration in companies’ abilities to generate cash as large swaths of the world abide by stay-in-place orders. And as ratings go down, capital can become more inaccessible for borrowers. Companies including cruise line operator Carnival and KFC-parent Yum Brands have recently sought to tap into debt markets with massive bond offerings.” data-reactid=”70″>In March, more than $92 billion in debt was downgraded to high yield from investment grade among 11 companies, according to CreditSights data cited by Bloomberg. The rating declines largely reflected a deterioration in companies’ abilities to generate cash as large swaths of the world abide by stay-in-place orders. And as ratings go down, capital can become more inaccessible for borrowers. Companies including cruise line operator Carnival and KFC-parent Yum Brands have recently sought to tap into debt markets with massive bond offerings.
“Oil prices are hurting that as well, as a good portion of high yield comes from the energy patch,” Krosby added. “So, the credit markets typically leave and ease things once the stress and the yields come in.”
The Federal Reserve, however, has attempted to help businesses meet short-term funding needs with recent new measures like its special credit facility to purchase corporate paper from issuers, as part of a broader effort to ensure “there’s cash everywhere, in every nook and cranny in the credit markets,” Krosby said.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Krosby said she is also monitoring volatility as measured by the VIX, or the so-called “fear-gauge” for the S&P 500. Wednesday afternoon, the VIX ticked as high as 60.59 before paring some gains. At the start of this year, the VIX was in the low-teens.” data-reactid=”73″>Krosby said she is also monitoring volatility as measured by the VIX, or the so-called “fear-gauge” for the S&P 500. Wednesday afternoon, the VIX ticked as high as 60.59 before paring some gains. At the start of this year, the VIX was in the low-teens.
“We don’t want to see it move above 60. At these stages with the VIX moving higher, there is a direct positive correlation with the equity market,” Krosby said. “We want that to start moving in the opposite direction.
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10:00 a.m. ET: Institute for Supply Management manufacturing PMI falls to 49.1 in March, but tops expectations
The Institute for Supply Management’s March manufacturing purchasing managers’ index fell into contractionary territory with a reading of 49.1 in March, according to a statement. Consensus economists had expected a steeper drop to 44.5, according to Bloomberg.
In February, the ISM manufacturing PMI had been 50.1, or above the neutral level of 50.0 to indicate expansion in the sector.
Beneath the headline index, the March new orders index dropped 7.6 points to 42.2, reflecting a drop-off in demand for new goods. Indices for production, backlogs of orders and employment each also fell, but by smaller margins. The supplier deliveries index, however, rose 7.7 points from February, helping offset the decrease in the overall PMI.
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9:45 a.m. ET: U.S. manufacturing sector output falls at fastest rate since 2009 and ‘worse is likely to come,’ according to IHS Markit
Manufacturing activity contracted in March by the fastest pace since August 2009 as the COVID-19 outbreak dampened demand and led to the steepest drop in production and new orders in the sector since the financial crisis, IHS Markit said in its final monthly report Wednesday.
The headline manufacturing purchasing managers’ index (PMI) fell to 48.5 in March, versus the 48.0 expected, according to Bloomberg-compiled data. Readings below the neutral level of 50.0 indicate contraction in a sector.
The March PMI was earlier reported as 49.2 in the advance print, which had already represented a decline into contractionary territory after February’s PMI of 50.7.
“Growing numbers of company closures and lockdowns as the nation fights the COVID-19 outbreak mean business levels have collapsed,” Chris Williamson, chief business economist for IHS Markit, said in a statement. “While some producers reported being busier as a result of stockpiling and anti-virus activities, notably in the food and healthcare sectors, these are very much the minority, and most sectors reported a rapid deterioration in demand and production.”
“Orders for capital equipment have deteriorated at a rate not seen since data were first available in 2009 as firms stopped investing in machinery,” he added, noting that households have also curbed spending on non-essential items. “With export sales also sliding, factories are facing a broad-based slide in demand which is already resulting in the largest job losses recorded since the global financial crisis.”
“Worse is likely to come as consumer spending falls further in coming months as lockdowns intensify and unemployment spikes higher,” Williamson said.”
Stocks fell Wednesday morning, extending Tuesday’s declines as the Dow shed more than 800 points just after market open.
The Real Estate, Financials and Energy sectors led declines in the S&P 500, each dropping more than 5%. In the Dow, Boeing and Dow Inc. posted the steepest losses.
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): -95.71 points (-3.7%) to 2,488.88
Gold (GC=F): -$4.00 (-0.25%) to $1,592.60 per ounce
10-year Treasury (^TNX): -10.3 bps to yield 0.596%
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8:15 a.m. ET: Private payrolls declined by 27,000 in March as small businesses shed jobs, according to ADP/Moody’s report
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Private payrolls fell less than expected in March, according to the ADP/Moody’s monthly report capturing the early impacts of the coronavirus outbreak on the domestic labor market.” data-reactid=”112″>Private payrolls fell less than expected in March, according to the ADP/Moody’s monthly report capturing the early impacts of the coronavirus outbreak on the domestic labor market.
Headline private payrolls sank by 27,000, beating expectations for a decline of 150,000, according to Bloomberg-compiled consensus data. in February, private payrolls rose by 179,000, downwardly revised from the 183,000 previously reported.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The ADP/Moody’s survey collects data through the 12th of the month, and so does not fully capture the most recent impacts to the job market caused by the coronavirus outbreak and related social distancing measures.” data-reactid=”114″>The ADP/Moody’s survey collects data through the 12th of the month, and so does not fully capture the most recent impacts to the job market caused by the coronavirus outbreak and related social distancing measures.
By company size, small businesses bore the brunt of declines in March, with companies of up to 49 employees losing 90,000 payrolls. Medium and large business each posted net gains in payrolls.
Both the goods-producing and services sectors saw net job losses in March, with the services sector leading declines. Trade, transportation and utilities industries lost 37,000 jobs, and administrative services lost 12,000 payrolls. In the goods-producing sector, construction lost 16,000 jobs.
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Small businesses lost 90,000 jobs in March, according to ADP/Moody’s.
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8:00 a.m. ET: Home Depot announces early store closures, expanded COVID-19 safety measures
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Home Depot (HD) became one of the latest major retailers to announce operational changes amid the coronavirus outbreak. The company said Wednesday morning it will shrink its store hours and close at 6 p.m. daily to give staff “additional time to perform cleaning and restock shelves.” Store associates will take their temperatures before work, it added.” data-reactid=”139″>The Home Depot (HD) became one of the latest major retailers to announce operational changes amid the coronavirus outbreak. The company said Wednesday morning it will shrink its store hours and close at 6 p.m. daily to give staff “additional time to perform cleaning and restock shelves.” Store associates will take their temperatures before work, it added.
The company also said it is limiting the number of customers inside at any given time, and eliminating spring promotions to avoid incentivizing more shoppers into retail locations. The company froze prices nationwide on products in high demand due to the coronavirus outbreak, and is prioritizing fulfillment to health-care centers and personnel.
Home Depot also said it is expanding its paid time off policy for workers to accommodate disruptions due to the coronavirus, and is implementing a temporary bonus program for workers in stores and distribution centers.
Shares of Home Depot fell 3.8% in early trading to $179.55 each.
7:00 a.m. ET Wednesday: Mortgage applications jumped last week as refinances surge, but new purchases extended declines
Mortgage applications jumped by a seasonally adjusted 15.3% over the prior week for the week ending March 27, the Mortgage Bankers Association (MBA) said Wednesday. This came following a 29.4% weekly drop for the week ending March 20.
The MBA’s index tracking refinances surged 26% from the previous week and was more than double that of the comparable period last year. Purchases, however, decreased 10% compared with the previous week, and 24% compared to the same week last year.
“Mortgage rates and applications continue to experience significant volatility from the economic and financial market uncertainty caused by the coronavirus crisis. After two weeks of sizable increases, mortgage rates dropped back to the lowest level in MBA’s survey, which in turn led to a 25 percent jump in refinance applications,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement. “The bleaker economic outlook, along with the first wave of realized job losses reported in last week’s unemployment claims numbers, likely caused potential homebuyers to pull back.”
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6:01 p.m. ET Tuesday: Stock futures open little changed
Here were the main moves in markets, as of 6:01 p.m. ET:
S&P 500 futures (ES=F): down 0.47%, or -12 points to 2,557.75
Dow futures (YM=F): down 0.45% or -98 points to 21,653.00
Nasdaq futures (NQ=F): down 0.32% or -25 points to 7,761.25
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The empty Trading Floor of the NYSE after the market has closed.
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.
