Canadian stocks rose, continuing their rebound from a 2017 low, as gains in health-care and financial shares led the way higher one day after the U.S. Federal Reserve raised interest rates as expected and refrained from accelerating its future tightening timeline.
The S&P/TSX Composite Index added 0.3 percent to 15,562.41, after sliding on Tuesday to its lowest since December. Seven of 11 major industries advanced, with health-care and consumer staples companies jumping at least 0.9 percent, offsetting a loss in utility and industrial shares.
Canada Goose Holdings Inc., the maker of $900 parkas, raised C$340 million in its initial public offering, pricing the shares at C$17 a piece, above the marketed range of C$14 to C$16 a share. At the IPO price, the company had a market value of about C$1.82 billion. In its first day of trading, shares rose as much as 41 percent to C$23.98 in Toronto.
In other moves:
Bonavista Energy Corp., Nuvista Energy Ltd. and Encana Corp. fell at least 1.9 percent as crude oil slid 0.1 percent
First Quantum Minerals Ltd., Detour Gold Corp. and Hudbay Minerals Inc. increased more than 2.8 percent as a Bloomberg index of commodities gained 0.4 percent
U.S. stocks slipped on Thursday pressured by healthcare shares as traders cashed in gains from one of the best performing sectors so far this year.
Proposals in President Donald Trump’s budget signaled higher regulatory costs for the sector and a cut in federal funding for medical research. Though still a ways away from becoming a reality, they gave traders a reason to sell.
The S&P 500 healthcare index dropped 0.9 percent.
Financials outperformed in a rebound after the sector was the worst performer on Wednesday and as the benchmark U.S. Treasury note yield rose, while utilities weakened.
Biogen weighed down the S&P 500, falling 4.7 percent to $278.96 after two brokerages downgraded the stock.
“Healthcare is being dragged down by equipment and supplies, biotechnology, and tools and services. These sectors have actually done quite well year-to-date, so this is just a little speed bump,” said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
“There’s a push and a pull with these stocks as the President has promised to accelerate the (drug and device) approval process, but now he’s proposing to cut the budget of the FDA, which could make it difficult to get expedited approvals.”
The Dow Jones Industrial Average fell 15.55 points, or 0.07 percent, to close at 20,934.55, the S&P 500 lost 3.88 points, or 0.16 percent, to 2,381.38 and the Nasdaq Composite added 0.71 point, or 0.01 percent, to 5,900.76.
Oracle surged to a record high of $46.99 before closing up 6.2 percent at $45.73, after it posted a better-than-expected quarterly profit.
Tyson Foods slipped 1.7 percent to $62.00 on news that a form of bird flu that is highly lethal for poultry had infected a second farm that supplies Tyson.
Advancing issues outnumbered declining ones on the NYSE by a 1.29-to-1 ratio; on Nasdaq, a 1.49-to-1 ratio favored advancers.
The S&P 500 posted 52 new 52-week highs and one new low; the Nasdaq Composite recorded 145 new highs and 52 new lows.
About 6.60 billion shares changed hands in U.S. exchanges, below the 6.96 billion daily average over the last 20 sessions.
With files from BloombergReport Typo/Error