TSX tumbles Tuesday

By Baystreet Stock Market Update

Gold takes it on chin

Canada’s main stock index lost much ground on Tuesday, as gold shares declined sharply, and materials lost a good deal of momentum

The S&P/TSX Composite Index turned lower 133.94 points to close Tuesday at 16,286.30

The Canadian dollar dropped 0.31 cents at 76.59 centsU.S.

Among gold stocks, Barrick Gold dropped 34 cents, or 2.4%, to $14.08, while Kinross Gold handed back 11 cents, or 2.5%, to $4.34.

In other resource issues, Agnico Eagle Mines slumped $1.50, or 2.8%, to $52.49, while First Quantum Minerals fell 46 cents, or 2.5%, to $18.22.

Consumer staples took a whacking, too, as Saputo lost $1.91, or 4.4%, to $41.86, while Loblaw Companies slid 74 cents, or 1.1%, to $67.31.

Among consumer discretionary stocks, Gildan Activewear skidded 61 cents, or 1.5%, to $39.80, while Canadian Tire lost $2.52, or 1.4%, to $176.50.

On things macroeconomic, Western University’s IVEY School of Business reported its Purchasing Managers Index came in for July at 61.8, down from June’s reading of 63.1, and July 2017’s level of 60

ON BAYSTREET

The TSX Venture Exchange forfeited 1.19 points Tuesday to 700.86

All 12 subgroups were lower on the day, as gold dulled in price 2%, materials suffered 1.7%, and consumer staples lost 1.5%.

ON WALLSTREET

Stocks rose on Tuesday as the S&P 500 moved closer to a record high set earlier this year, boosted by strong corporate earnings that offset worries around global trade.

The Dow Jones Industrial Average grew 126.73 points to 25,628.91, as Caterpillar climbed more than 2%.

The S&P 500 picked up 8.05 points to 2,858.45, with energy and industrials outperforming.

The NASDAQ tacked on 23.99 points to 7,883.66, as Amazon and Tesla rose

Through Tuesday’s close, the S&P 500 was just 0.5% away from reaching an all-time high of 2,872.87, set on Jan. 26. The NASDAQ was also within 1% of a record high, while the Dow was more than 3.5% away from reaching an all-time high.

In all, 80% of the S&P 500 companies that have reported quarterly results through Friday have posted better-than-expected earnings, on pace to be the highest beat rate since the metric was first tracked in 2008.

Through Friday, S&P 500 earnings are up 24% in the second quarter on a year-over-year basis. Some of the companies that have reported better-than-expected earnings include Apple and Amazon. Dow-component Disney reported weaker than-expected earnings after the close, sending its shares down 2%.

Shares of Tesla closed more than 10% higher after CEO Elon Musk said he was considering taking the company private.

Last week, China said it was ready to retaliate with tariffs on around $60 billion worth of U.S. goods, ranging from 5% to 25%; just days after the U.S. administration revealed that President Donald Trump had spoken with U.S. Trade Representative Robert Lighthizer and asked him to consider increasing the proposed levies on $200 billion worth of Chinese goods up to 25% from 10%.

Chinese state media claimed in editorials over recent days that the Asian nation and its counter-response to America has been “restrained” and “rational,” in light of the levies that have been threatened. China’s state media also said late Monday that they “will not surrender” to “U.S. trade blackmail.”

Prices for the benchmark for the 10-year U.S.Treasury dropped, raising yields to 2.98% from Monday’s 2.95%. Treasury prices and yields move in opposite directions

Oil prices were static at $69.01U.S. a barrel.

Gold prices gained 60 cents to $1,218.30U.S. an ounce.

This article provided by NewsEdge.