TSX Swoons As Lower IMF Projection

By Baystreet Stock Market Update

Tech bludgeoned

Canada’s main stock index fell broadly on Tuesday, after the International Monetary Fund cut its forecasts for global economic growth, blaming tariff war.

The S&P/TSX Composite Index slumped 92.12 points to conclude Tuesday at 15,854.05

The Canadian dollar squeezed into the green by 0.04 cents to 77.22 centsU.S.

The IMF cut its global economic growth forecasts for 2018 and 2019, saying the U.S-China trade war was taking a toll and emerging markets were struggling with tighter liquidity and capital outflows.

Tech stocks took the worst beating Tuesday, as Shopify Inc. dipped $7.29, or 3.9%, to $181.75, while Constellation Software faltered $10.81, or 1.2%, to $919.21.

Among material issues, Agnico Eagle Mines slid $1.70, or 3.7%, to $43.75, while First Quantum Minerals fell 13 cents to $14.47.

Gold dulled in price, with Barrick Gold skidding 15 cents, or 1%, to $14.68, while Kinross Gold shuffled off three cents, or 1%, to $3.54.

Health-care stocks provided one of the few bright spots, with Canopy Growth climbing $1.63, or 2.7%, to $63.12, and Bausch Health off 77 cents, or 2.3%, to $33.28.

Among consumer staples, Restaurant Brands gained 13 cents to $76.41, while Metro progressed 80 cents, or 2%, to $40.61.

On the economic slate, Canada Mortgage and Housing Corporation reported housing starts fell to 188,683 in September from a revised 189.843 in August.

ON BAYSTREET

The TSX Venture Exchange lost 2.73 points to 702.96

All but two of the 12 subgroups were down on the session, with information technology capsizing 2.4%, while materials and gold each gave back 1.4%

The two gainers were health-care, haler by 1.4%, while consumer staples improved 0.3%.

ON WALLSTREET

Stocks fell Tuesday after a choppy session as investors grappled with rising U.S. interest rates.

The Dow Jones Industrial Average surrendered 56.21 points to end the day at 26,430.57, with DowDuPont and United Technologies underperforming.

The S&P 500 dipped 4.09 points to 2,880.34, as a decline in PPG Industries led the materials sector lower. The broad index also closed lower for the fourth straight day.

The NASDAQ eked out a gain of 2.07 points to 7,738.02, to snap a three-day losing streak, however, as gains in major tech shares kept losses in check.

Shares of Facebook improved 0.4%, and Amazon rose 0.3%. Netflix gained 1.9%. Apple’s stock also climbed 1.4%.

The recent rise in interest rates comes as investors brace for the upcoming earnings season, which starts later this week. J.P. Morgan Chase, Wells Fargo, Citigroup and Walgreens Boots Alliance are among the companies set to report.

Overall, analysts expect corporate earnings to have grown by about 19% in the third quarter. Earnings grew by 25% in the first two quarters of the year.

However, PPG Industries, an industrial coatings manufacturer, fell more than 10% after updating its third-quarter guidance. The company now expects adjusted earnings per share to range between $1.41 and $1.45, well below an estimate of $1.59.

The so-called core Personal Consumer Expenditure price index, which is the Federal Reserve’s preferred measure of inflation, remained at 2% in August. A figure of 2% is the Fed’s inflation target.

The benchmark 10-year Treasury note yield rose to its highest level since 2011, before slipping. The longer-term 30-year bond yield also reached its highest mark since 2014.

Prices for the benchmark for the 10-year U.S.Treasury gained a bit of ground, lowering yields to 3.20% from Friday’s 3.23%. Treasury prices and yields move in opposite directions.

Oil prices gathered 56 cents at $74.85U.S. a barrel.

Gold prices gained $4.80 to $1,193.40U.S. an ounce.

This article provided by NewsEdge.