Skip to main content
Complete Olympic Games coverage at your fingertips
Your inside track on the Olympic Games
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Complete Olympic Games coverage at your fingertips
Your inside track onthe Olympics Games
$1.99
per week
for 24 weeks
// //

Canada’s S&P/TSX Composite Index closed down 51.98 points, or 0.31%, at 16,510.83, moving largely in sympathy with Wall Street where stocks took a pause after a four-day winning streak. Energy, materials and financial sectors all ended the day with losses.

Coronavirus counts are rising at a worrying degree in many countries around the world, and Johnson & Johnson said late Monday it had to temporarily pause a late-stage study of a potential COVID-19 vaccine.

Uncertainty about the prospects for more stimulus for the economy from Washington is also hanging over markets. Several big companies kicked off the earnings reporting season with better profit reports than expected.

Story continues below advertisement

While all three major U.S. stock indexes closed in the red, Microsoft Corp and Amazon.com helped the mitigate the tech-heavy Nasdaq’s loss.

Johnson & Johnson announced on Monday it was pausing clinical trials of a COVID-19 vaccine candidate due to an unexplained illness in a study participant. The delay weighed on the company’s shares, even after its beat-and-raise earnings report.

Late in the session, rival Eli Lilly & Co said it was also halting its coronavirus antibody trial because of safety concerns.

“We have this recent spike in coronavirus cases coinciding with big drug companies halting vaccine trials,” said Robert Pavlik, chief investment strategist at SlateStone Wealth LLC in New York. “That’s making the market nervous and in response, you’re seeing the lockdown stocks moving higher.”

Hopes for the passage of a new coronavirus relief package faded as U.S. House Speaker Nancy Pelosi rejected the $1.8 trillion coronavirus relief proposal from the White House, saying it “falls significantly short of what this pandemic and deep recession demand.”

Senate Majority Leader Mitch McConnell said the Republican-led Senate would vote on a targeted pared-down stimulus package on Monday.

Meanwhile, millions of Americans struggle to make ends meet nearly two-and-a-half months after emergency unemployment assistance expired.

Story continues below advertisement

“(Washington is) playing with the market’s emotions and individuals' financial futures,” SlateStone Wealth’s Pavlik added. “As this continues, the market is looking past what they’re saying because it truly believes stimulus will come some time after the election.”

JPMorgan Chase & Co and Citigroup Inc were the first two major U.S. banks to report third-quarter results.

Although JPMorgan handily beat consensus profit estimates, gaining from a boom in its trading business, its peer Citigroup, while also beating expectations, was slammed by low interest rates and a slowdown in loan demand. Their shares, along with the broader S&P Banking index lost ground.

Apple Inc shares slid 2.65% after unveiling the latest incarnation of its flagship gadget, the iPhone 12 with 5G connectivity.

Unofficially, the Dow Jones Industrial Average fell 158.04 points, or 0.55%, to 28,679.48, the S&P 500 lost 22.51 points, or 0.64%, to 3,511.71 and the Nasdaq Composite dropped 12.36 points, or 0.1%, to 11,863.90.

Third-quarter reporting season has left the starting gate, and analysts now see S&P 500 earnings, in aggregate, falling by 19.6% year-on-year, according to Refinitiv.

Story continues below advertisement

Other earnings on tap this week include Bank of America Corp, Goldman Sachs Group Inc, Wells Fargo & Co, UnitedHealth Group and United Airlines Holdings Inc expected on Wednesday, with Morgan Stanley and Honeywell International Inc due on Thursday.

Shares of Delta Air Lines Inc dropped after the commercial carrier reported a 76% plunge in quarterly revenue and announced it has delayed a targeted halt to its cash bleed.

Planemaker Boeing Co reported order cancellations for its grounded 737 MAX aircraft and said deliveries were less than half the number as the same month a year ago. The stock was the heaviest drag on the Dow.

Read more: Stocks that saw action Tuesday - and why

Reuters, The Associated Press, Globe staff

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies