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Canadian Shares Swinging Between Gains And Losses

After a flat start and a subsequent small uptick, the Canadian market slipped into the red Tuesday morning, and despite bouncing back swiftly, faltered again and is struggling for support a little past noon.

Hopes about U.S. coronavirus stimulus, and reports about Russia registering the first vaccine 'Sputnik V.' against the coronavirus pandemic are aiding sentiment.

Russian President Vladimir Putin said mass production will be available within weeks and expects to produce millions of doses in the coming months.

Consumer discretionary, energy and financial stocks are higher, while materials shares are down sharply after gold and silver prices tumbled.

The benchmark S&P/TSX Composite Index is up 10.72 points or 0.06% at 16,616.22 nearly half-an-hour past noon. Earlier, after falling to 16,557.49, the index had advanced to 16,640.44.

Among energy stocks, Cenovus Energy (CVE.TO), Imperial Oil (IMO.TO) and Whitecap Resources (WCP.TO) are rising 3.6 to 4.5%. Canadian Natural Resources (CNQ.TO), Crescent Point Energy (CPG.TO), Suncor Energy (SU.TO), Husky Energy (HSE.TO) and Vermilion Energy (VET.TO) are up 1to 3%.

In the financial section, Great-West Lifeco (GWO.TO), Power Corporation of Canada (POW.TO), Manulife Financial (MFC.TO), Fairfax Financial Holdings (FFH.TO), Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO), Laurentian Bank (LB.TO), Canadian Imperial Bank of Commerce (CM.TO), Bank of Montreal (BMO.TO), Sun Life Financial (SLF.TO) and Bank of Nova Scotia (BNS.TO) are up 1 to 3%.

Among consumer discretionary stocks, Martinrea International Inc. (MRE.TO) is climbing nearly 6%. The company reported second-quarter net loss of $146.9 million or $1.84 per share, compared with net income of $28.1 million or 34 cents per share a year earlier. The adjusted loss was $73.1 million or 91 cents per share, down from an adjusted profit of $54.6 million or 66 cents per share in the second quarter of 2019, the company said.

Magna International (MG.TO) is up 5% and Linamar Corp (LNR.TO) is up 3.3%. Great Canadian Gaming Corp (GC.TO), Gildan Activewear (GIL.TO), Restaurant Brands International (QSR.TO) and Canadian Tire Corporation (CTC.A.TO) are gaining 1 to 2.3%.

In the materials section, Pan American Silver Corp (PAAS.TO) is plunging more than 11%. First Majestic Silver Corp (FR.TO), Silvercrest Metals (SIL.TO), Sivercorp Metals (SVM.TO), Kinross Gold Corp (K.TO) and Barrick Gold Corp (ABX.TO) are down 8 to 9%.

Yamana Gold (YRI.TO), Agnico Eagle Mines (AEM.TO), Ssr Mining (SSRM.TO), Alacer Gold (ASR.TO), Iamgold (IMG.TO), Kirkland Lake Gold (KL.TO), Wheaton Precious Metals (WPM.TO), Franco-Nevada Corp (FNV.TO), Eldorado Gold (ELD.TO) and B2Gold Corp (BTO.TO) are lower by 6 to 8%.

Nutrien Ltd. (NTR.TO) reported that its second-quarter net earnings decreased to $765 million or $1.34 per share from $858 million or $1.47 per share in the prior year, due to significantly lower crop nutrient prices. The stock is gaining about 3.7%.

Air Canada (AC.TO) is up 3%. The airliner announced today that its new loyalty program will launch on November 8, 2020. This is the first loyalty program in Canada purpose-built for families, with points and benefits sharing.

Hydro One Ltd. (H.TO) reported a second-quarter profit of $1.1 billion, boosted by a one-time gain of $867 million related to a court decision. Hydro One says the profit amounted to $1.84 per share for the quarter ended June 30, up from $155 million or 26 cents per share a year earlier. The stock is down marginally.

In economic news, data released by Canada Mortgage and Housing Corporation showed housing starts in Canada surged by a seasonally adjusted annual rate of 15.8% from a month earlier to 245,604 units in July of 2020, beating market expectations.

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