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Stocks Hammered by Shopify Weakness



Canada’s main stock index fell on Wednesday, pressured by technology stocks following Shopify’s downbeat forecast, while higher bond yields and declining commodity prices further weakened sentiment.

The TSX Composite remained red 134.15 points to move into Wednesday afternoon at 22,156.47.

The Canadian dollar eked higher 0.07 cents at 72.89 cents U.S.

The information technology sector dropped sharply, on track to log its worst day in over 14 months. The sector was pulled down by a 19.0% fall, or $20.07, in e-commerce giant Shopify to $85.68, after it forecast its slowest quarterly revenue growth in two years.

Suncor Energy beat first-quarter profit estimates on Tuesday, boosted by strong demand for refined products and record oil sands production. Suncor shares eked up 29 cents to $53.73.

Stella-Jones rose $6.33, or 8.7%, to $79.00, after its first-quarter results beat analysts’ estimates.

ON BAYSTREET

The TSX Venture Exchange gained 0.92 points to 594.16.

Eight of the 12 TSX subgroups had turned positive by noon hour EDT, with consumer staples higher 0.8%, communications up 0.7%, and utilities ahead 0.4%.

The four laggards were weighed most by information technology, off 5.2%, health-care, down 0.6%, and consumer discretionary, sliding 0.5%.

ON WALLSTREET

The Dow Jones Industrial Average traded higher Wednesday, trying to extend its winning streak to six days, as investors shook off some weakness in tech.

The 30-stock index edged ahead 81.59 points to 38,965.85, putting the index on track for its best daily positive streak since December.

The S&P 500 subtracted 4.39 points to 5,183.31.

The NASDAQ fell 37.25 points to 16,298.31.

Uber shares fell 8.7% after the rideshare company’s posted a surprising net loss and weaker-than-expected bookings revenue, while Intel lost more than 2.5% after the chipmaker lowered its second-quarter revenue guidance.

Tesla shares dipped 2% after Reuters reported that U.S. prosecutors are looking into whether the company committed wire fraud as part of a probe into Tesla’s Autopilot systems.

Prices for the 10-year Treasury sagged, raising yields to 4.48% from Tuesday’s 4.42%. Treasury prices and yields move in opposite directions.

Oil prices removed 43 cents to $78.81 U.S. a barrel.

Gold prices recovered $2.50 to $2,326.70.



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