Energy Takes Worst Losses
Equities in Toronto fell hard on Tuesday, driven by a plunge in energy shares on the back of a drop in oil prices, along with a rout in global markets.
The S&P/TSX Composite Index tumbled 194.01 points, or 1.3%, to close Tuesday at 14,877
The Canadian dollar stumbled 0.79 cents at 75.13 U.S.
Energy took the biggest knocks, Suncor off 35 cents to $42.83, while Imperial Oil plunged $1.98, or 4.8%, to $39.54.
Industrials also felt the sting of investor wrath, as Air Canada lost 28 cents, or 1.3%, to $24.75, while Canadian Pacific Railway slumped $11.91, or 4.3%, to $263.48.
Magna International was among a host of consumer discretionary stocks that lost ground, falling $1.12, or 1.7%, to $65.16, while Canadian Tire failing $3.74, or 2.5%, to $148.86.
Gold provided a small measure of positive vibes, as Barrick Gold took on nine cents to $17.35, while Kinross Gold gained eight cents, or 2.4%, to $3.48.
Among techs, BlackBerry gathered 23 cents, or 2%, to $11.55, while Shopify shot up $2.97, or 1.7%, to $179.30.
The TSX Venture Exchange slumped 15.72 points, or 2.6%, to 599.51
All but three of the 12 subgroups were lower, with energy docking 3.2%, industrials down 2.4%, and consumer discretionary issues sinking 1.7%
The two gainers were gold, up 1%, and information technology, up 0.5%.
The Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in Target shares pressured retailers, while some of the most popular tech shares dropped again.
The 30-stock index erased 551.8 points, or 2.2%, to 24,465.64
The S&P 500 lost 48.84 points, or 1.8%, to 2,641.89
The NASDAQ dumped 119.65 points, or 1.7%, to 6,908.82, but managed to hang on to a slight gain for 2018.
Target fell 10.5% after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
The decline sent retailers down. Kohl’s slumped 9.2%, L Brands slouched 17.7%, and Macy’s swooned 3.4%.
FAANG stocks traded in a wide range Tuesday. The group of stocks started the day trading down sharply, but they managed to recover most of their losses. Facebook and Alphabet notched slight gains after their initial decline, while Amazon and Netflix closed about 1% lower. Apple closed 4.8% lower.
Boeing shares fell 1% Tuesday after the company canceled a conference call with airlines to discuss the systems on the 737 MAX model. Last month, a 737 MAX crashed and killed all 189 people on board.
Prices for the benchmark for the 10-year U.S.Treasury were lower, raising yields back to Monday’s 3.06%. Treasury prices and yields move in opposite directions
Oil prices slid $3.94 to $53.26U.S. a barrel.
Gold prices handed back $2.70 at $1,222.60U.S. an ounce.
This article provided by NewsEdge.