Equities in Canada’s largest market opened lower on Tuesday as Wall Street's losses triggered a surge of global selling.
The S&P/TSX Composite Index tumbled 190.15 points, or 1.3%, to kick off Tuesday’s session at 14,880.86
The Canadian dollar dipped 0.35 cents at 75.56 U.S.
Underwater surveys began on Monday after an oil spill off Canada's Atlantic coast as Husky Energy and government agencies assessed a leak that temporarily shut down all crude production in the waters of Newfoundland and Labrador.
Meanwhile, Canaccord Genuity cut Husky’s target price to $19 from $24. Husky shares dropped 51 cents, or 3%, to $16.36.
Morgan Stanley cut the price target on Canadian Natural Resources to $50 from $60. Natural Resources shares lost 90 cents, or 2.5%, to $34.96.
CIBC cut the price target on Trinidad Drilling to $1.75 from $2.10. Trinidad shares shaved off a penny to $1.66.
ON BAYSTREET
The TSX Venture Exchange slumped 10.17 points, or 1.7%, to 605.06
All but two of the 12 subgroups were lower, with health-care suffering 2.3%, energy waning 2.2%, and consumer discretionary stocks off 1.4%
The two gainers were gold 0.4%, and utilities up 0.2%.
ON WALLSTREET
The major U.S. stock indexes fell sharply on Tuesday and turned negative for the year as a decline in Target shares pressured retailers, while the most popular technology stocks dropped again.
The Dow Jones Industrial Average lost 494.93 points, or 2%, to 24,552.51
The S&P 500 retreated 44.41 points, or 1.7%, to 2,646.33
The NASDAQ withered 140.23 points, or 2%, to 6,888.25
Target fell 10.8% after reporting weaker-than-expected earnings for the previous quarter. The company also posted lighter-than-forecast same-store sales, which is a key metric for retailers.
The decline sent retailers down. Kohl's slumped 10.8%, L Brands slouched 15.1%, and Macy's swooned 4%.
Stocks also fell as members of the popular "FAANG" trade — which is made up of Facebook, Amazon, Apple, Netflix and Alphabet — fell further into bear market. Facebook fell 0.9%, while Amazon, Apple and Netflix all dropped at least 3%. Alphabet's stock dipped 1.4%.
Collectively, these stocks have lost more than $1 trillion in market value since hitting their 52-week highs.
On Monday, the FAANG members all closed down at least 20% from their one-year highs, pressuring the major indexes.
Apple has been leading the charge lower for FAANG stocks as investors worry sales for the company's flagship product, the iPhone, will slow down. Most recently, Goldman Sachs slashed its price target on Apple on Tuesday, noting that "in addition to weakness in demand for Apple's products in China ... it also looks like the balance of price and features in the iPhone XR may not have been well-received."
Meanwhile, Facebook is down sharply amid backlash for how the company has dealt its handling of the platform's use by foreign entities to disrupt the 2016 U.S. election.
Boeing shares fell more than 3% Tuesday after the company canceled a conference call with airlines to discuss the systems on the 737 MAX model. Last month, a 737 MAX crashed and killed all 189 people on board.
Prices for the benchmark for the 10-year U.S. Treasury were higher, lowering yields to 3.04%, from Monday’s 3.06%. Treasury prices and yields move in opposite directions
Oil prices slid $2.93 to $54.27 U.S. a barrel.
Gold prices handed back $2.10 at $1,223.20 U.S. an ounce.
