Equities in Canada’s largest centre fought their way back to the breakeven on Tuesday as lower commodity prices weighed on resource shares, while the heavyweight financials group also lost ground.
The S&P/TSX Composite Index remained negative 20.31 points – off its lows of the morning -- to approach noon Tuesday at 15,084.97
The Canadian dollar faded 0.25 cents to 77.32 cents U.S.
Barrick Gold fell 0.8% to $20.20 and Agnico Eagle Mines was down 0.7% at $56.95.
The resource sector was down, with Potash Corp. of Saskatchewan down 1% at $21.91.
Toronto Dominion Bank was among the biggest drags on the index, down 0.4% at $65.06, while Bank of Nova Scotia fell 0.7% to $56.95.
In the oil patch, Suncor Energy rose 0.2% to $36.59, while Canadian Natural Resources advanced 0.7% to $37.22.
Shares of timber producers were mixed as wildfires in the western province of British Columbia disrupted timber and mining operations and forced thousands from their homes.
West Fraser Timber fell 0.3% to $60.47 after it said it had temporarily suspended operations at three sites.
On the upside, shares of Alimentation Couche Tard rose 2.1% to $60.57 after TD Securities raised its target to $78.00 from $75.00
Canada Mortgage and Housing Corporation says the annual pace of housing starts in Canada picked up in June. The seasonally-adjusted annual rate of housing starts in June came in at 212,695 units, up from 194,955 units in May. Economists had expected the annual rate to come in at 200,000.
ON BAYSTREET
The TSX Venture Exchange dropped 2.98 points to 749.56.
Eight of the 12 TSX subgroups were lower, as gold sank 0.7%, telecoms were down 0.6%, and utilities were off 0.5%.
The four laggards were led by information technology and consumer discretionaries, each up 0.3%, while energy made its way up 0.2%.
ON WALLSTREET
U.S. equities posted muted gains on Tuesday as investors weighed the possibility of higher sovereign bond yields.
The Dow Jones Industrials plummeted 85.9 points to 21,322.62, with Boeing contributing the most gains.
The S&P 500 slouched 7.15 points to 2,420.28, with financials weighing decliners.
The NASDAQ sank 2.51 points to 6,173.89
Overall, S&P 500 second-quarter earnings are expected to rise 6.2% year over year, according to S&P Capital IQ. But experts say the key for investors will be the companies' guidance.
In corporate news, Amazon.com held its annual Prime day, which features big deals for Amazon's Prime customers.
Wall Street also geared up for the start of earnings season. JPMorgan Chase, Wells Fargo and Citigroup are among the companies set to report later this week.
Treasury yields have risen sharply over the past month amid hawkish central-bank rhetoric. In that time period, the benchmark 10-year note yield has climbed to around 2.38% from approximately 2.2%.
Four Federal Reserve officials are slated to speak Tuesday, including Gov. Lael Brainard and Minneapolis Fed President Neel Kashkari. The speeches will lead up to Fed Chair Janet Yellen's testimony Wednesday.
The Fed has raised rates twice this year and is expected to hike once more before 2017 ends. The central bank has also signaled its desire to start unwinding its massive $4.5-trillion balance sheet.
In economic news, the National Federation of Independent Business small business optimism index slipped to 103.6 in June from 104.5 in May.
Moreover, wholesale inventories rose 0.4% in May, marking their biggest gain in five months. Meanwhile, job openings decreased to 5.7 million in May, according to the U.S. Labor Department.
Prices for the benchmark 10-year Treasury note were higher Tuesday, lowering yields to 2.37% from Monday’s 2.38%. Treasury prices and yields move in opposite directions
Oil prices gained 30 cents to $44.70 U.S. a barrel
Gold prices recovered 70 cents to $1,213.90 U.S. an ounce.
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