TSX Gives Back Monday Gains

Newmont, CI in Focus

Canada's main stock index fell on Tuesday led by losses in heavyweight energy and financial stocks, as investors waited for the latest on trade talks between the United States and China.

The TSX Composite Index lost 36.68 points to open Tuesday at 16,996.18

The Canadian dollar dropped 0.01 cents to 75.16 cents U.S.

Bank of Nova Scotia posted a 1.6% rise in quarterly profit on Tuesday, aided by modest growth in domestic and international banking units against the backdrop of slowing economic growth.

Canaccord Genuity raised the price target on Scotiabank to $77.00 from $74.00. Scotiabank shares gained 20 cents to $76.00.

Alimentation Couche-Tard sweetened an approach for Caltex Australia
with a A$8.61-billion ($5.8-billion U.S.) offer, a day after Caltex said it could carve out some of its convenience shop sites.

Meanwhile, BMO raised the rating on Couche-Tard to outperform from marketperform. Couche-Tard shares advanced 40 cents to $43.36.

Australia's Evolution Mining on Tuesday agreed to buy Canadian gold mining complex Red Lake from Newmont Goldcorp for $375 million in cash. Newmont dipped 13 cents to $50.14.

Canaccord Genuity raised the price target on CI Financial to $25 from $23.50. CI shares picked up nine cents to $20.90.


The TSX Venture Exchange ducked back 1.3 points to 528.92

All but three of the 12 Toronto subgroups were lower in the early going, with health-care and financials each down 0.5%, with gold off 0.4%.

The three gainers were information technology, picking up 0.7%, consumer staples, up 0.3%, and industrials, ahead 0.2%.


Stocks were little changed on Tuesday, but managed to post fresh records as retail shares outperformed.

The Dow Jones Industrials gained 32.92 points on top of Monday’s all-time record 28,099.39.

The S&P 500 inched up 2.86 points to 3,136.50 from Monday’s record.

The NASDAQ grew 9.15 points to 8,641.64, improving on Monday’s all-time peak.

Retailers rose broadly after Best Buy posted quarterly earnings that beat analyst expectations, sending its stock up more than 6%. The electronics retailer also raised its fiscal 2020 earnings forecast. Dick’s Sporting Goods also rallied more than 15% on better-than-expected earnings.

Tuesday’s moves come after the major averages all set record closing highs amid optimism around the U.S.-China trade talks. China’s ministry of commerce said Monday that the leaders of China and the U.S. spoke over the phone.

On the data front, the S&P Case-Shiller index showed home price gains accelerated in September, gaining 3.2% annually. Consumer confidence data was scheduled for release at 10 a.m.

Prices for the 10-Year U.S. Treasury moved slightly upward, lowering yields to 1.74% from Monday’s 1.76%. Treasury prices and yields move in opposite directions.

Oil prices added 46 cents to $58.47 U.S. a barrel.

Gold prices dipped $3.20 to $1,453.70 U.S. an ounce.