U.S. stock markets were mixed in late-morning trading, with the Dow Jones industrial average at the front of the slide. The index was down 224.31 points, closing at 39,869.09. By comparison, the production-heavy Nasdaq composite was exceptionally strong, gaining 70.99 points to close at 17,237.03. At the same time, the S&P 500 stock index fell 2.36 points, ending at 5,482.41.
In Toronto, Canada’s heavy resource-weighted main stock index struggled against the pressure from lower oil prices, losing close to 100 points. Losses in many sectors fueled this decline. The industrial, base metal, and telecommunication sectors were all in the red, dragging down the index as a whole.
The Canadian dollar was worth 72.16 cents U.S., up from 72.09 cents U.S. on Thursday. This small change in the currency is indicative of deep-rooted market forces at work that is influencing economic conditions north and south of the 49th parallel.
The June crude oil contract on the commodities market was up slightly today. It is currently up one penny from yesterday’s US$62.79 per barrel to US$62.80. The June natural gas contract increased by seven cents to US$3.17 per mmBTU. The gold market really didn’t help this time. That sent the June gold contract plummeting, down US$66.40 to US$3,282.20 an ounce. The more closely watched July copper contract fell, down four cents to US$4.87 per pound.
Market participants are trying to read these seesawing changes very carefully. To determine whether the ACT is on track, they’re looking closely at sector performance and broader economic indicators. The mixed picture in U.S. markets along with the drop in the value of Canadian stocks underscore the complicated economic moment we find ourselves in.
