American Market News


Slump Continues for TSX


Suncor, Canopy in Vogue

Oct 23 2018 04:32 pm EST


Equities in Canada''s largest market suffered from the same malaise as markets the world over, as fear of declining oil prices weighed heavily on the indexes.

The S&P/TSX Composite Index slumped 127.53 points to close Tuesday''s session at 15,285.17, off its lows of the morning

The Canadian dollar gained 0.13 cents to 76.47 cents U.S.

Weed stocks extended their slide from Monday and led decliners with Aurora Cannabis down $1.33, or 11.7%, to $10.09, and Canopy Growth down $1.06, or 2%, to $53.40.

Energy stocks also crawled, with Suncor Energy sliding $1.31, or 2.8%, to $45.14, and Imperial Oil slipping $1.02, or 2.3%, to $42.81.

Among industrials, Bombardier surrendered 26 cents, or 6.6%, to $3.48, while Stella-Jones lost 38 cents to $42.39.

Consumer staples also made hay, as Restaurant Brands International acquired 11 cents to $74.33, while Saputo picked up 44 cents, or 1.1%, to $39.71.

ON BAYSTREET

The TSX Venture Exchange fell 9.63 points, or 1.5%, to 650.53

Eight of the 12 subgroups were lower, as health-care plummeted 3%, energy let go of 2.2%, and industrials shed 1.8%.

Gold led the four gainers, brightening 1%, while consumer staples forged ahead 0.3%, and financials inched up 0.02%.

ON WALLSTREET

Stocks fell on Tuesday as corporate results from Caterpillar and 3M disappointed investors, but the market managed to recover most of its losses later in the session as investors rotated into McDonald''s and defensive stocks like Procter & Gamble.

The Dow Jones Industrials came off its lows of a very scary morning, but remained negative 125.98 points to 25,191.43

The S&P 500 docked 15.19 points to 2,740.69,

The NASDAQ also staged a recovery, before falling 31.09 points short of breakeven to 7,437.54, having been briefly positive earlier in the day.

The S&P 500 posted its fifth straight decline and briefly dipped below the lows hit earlier in October during this ongoing selloff. The major indexes are all down at least 4.8% for October.

The comeback was led by McDonald''s, which rose more than 6% on strong earnings, and a 0.7% gain in Procter & Gamble. Coca-Cola also rose 0.9% while the S&P 500 consumer staples sector climbed 0.4%.

Tuesday''s initial selloff picked up steam after Caterpillar and 3M released their latest quarterly results, disappointing Wall Street.

Caterpillar dropped more than 10% following the release of its results before closing 7.6% lower. The company said its manufacturing costs rose due to higher material and freight costs. Material costs were driven by higher steel prices and tariffs. This drop adds to Caterpillar''s steep monthly losses. Through Tuesday''s close, the stock is down 22% for the month.

Shares of 3M fell as much as 8.4% before trading about 4.4% lower. Its quarterly earnings and revenue missed expectations. The company also trimmed its earnings outlook for 2018.

The latest bout of selling comes during the busiest week of the earnings season, with more than 150 members of the S&P 500 set to report. Of the companies that have reported thus far, 79.6% have topped analyst estimates for earnings.

The U.S. and China have implemented tariffs on billions of dollars worth of their goods this year, increasing costs for companies and raising fears that tighter global trade conditions could slow down the global economy. Negotiations between the two countries have stalled recently, increasing fears that this spat will be prolonged.

Prices for the benchmark for the 10-year U.S. Treasury sprang to life, lowering yields to 3.17% from Monday''s 3.2%. Treasury prices and yields move in opposite directions.

Oil prices backpedaled $3.05 at $66.31 U.S. a barrel.

Gold prices gained $8.70 an ounce to $1,233.30