Canada's main stock index opened lower on Tuesday, taking a cue from global markets and a fall in energy stocks following a $2 drop in Brent crude price.
The S&P/TSX Composite Index jettisoned 214.98 points, or 1.4%, to begin early Tuesday at 15,197.72
The Canadian dollar was unchanged at 76.34 cents U.S.
Canada's FSD Pharma signed a letter of intent to acquire Israel's Therapix Biosciences Ltd for $48 million in stock, combining two complementary businesses focused on the research and development of cannabinoid treatments.
FSD shares dipped 5.5 cents, or 11.5%, to 43 cents
Canaccord Genuity cut the rating on Ascendant Resources to hold from buy. Ascendant shares were static at 75 cents.
CIBC cut the price target on Genworth MI Canada to $45.00 from $48.50. MIC shares faded 56 cents, or 1.4%, to $40.22.
National Bank of Canada raised the target price on TFI International to $50.00 from $49.00. TFI shares slipped 82 cents, or 1.9%, to $43.29.
ON BAYSTREET
The TSX Venture Exchange fell 12.73 points, or 1.9%, to 647.43
All but one of the 12 subgroups were lower, as health-care plummeted 4.8%, energy let go of 2.7%, and industrials weakened 2.2%.
The lone holdout was in gold, brightening 2.5%.
ON WALLSTREET
Stocks fell sharply on Tuesday as corporate results from Caterpillar and 3M disappointed investors.
The Dow Jones Industrials fell without a parachute, losing 126.93 points to 25,317.41, with Caterpillar and 3M as the biggest decliners.
The S&P 500 docked 11.9 points to 2,755.88, as the industrials and tech sectors underperformed.
The NASDAQ regrouped 33.09 points to 7,482.11, entering correction territory.
The S&P 500 was on pace for its fifth straight weekly decline and traded below the lows hit earlier this month during this ongoing selloff. The major indexes are all down at least 5.8% for October.
Caterpillar dropped more than 9% following the release of its results. 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 Monday's close, the stock is down 15.6% for the month.
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.
Shares of 3M fell more than 7.9% after its quarterly earnings and revenue missed expectations. The company also trimmed its earnings outlook for 2018.
Continued selling in tech and financials shares also pushed futures lower.
Netflix dropped 3.3%, bringing its monthly losses to more than 14%. Amazon, Nvidia, Alphabet and Twitter shares also traded lower as investors worried about valuations for high-flying technology names with interest rates on the rise.
Bank of America declined 2.8% and is now down more than 10% for October as investors fretted that rising mortgage rates would crimp loan growth. Higher short-term rates may increase competition for bank deposits as well. Banks led the market lower on Monday.
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
Prices for the benchmark for the 10-year U.S. Treasury sprang to life, lowering yields to 3.12% from Monday’s 3.2%. Treasury prices and yields move in opposite directions.
Oil prices backpedaled $1.84 at $67.52 U.S. a barrel.
Gold prices surged $14.20 an ounce to $1,238.80
