Hot Toronto Market Cools off Tuesday

Rogers off, IAMGOLD soars

It was bound to happen, as Toronto stocks took a breather from the torrid pace they were setting in the last couple of days, and took some losses.

The S&P/TSX Composite faltered 90.74 points to conclude Tuesday at 16,213.31

The Canadian dollar rallied 0.03 cents to 75.07 cents U.S.

Communications displayed the biggest, shiniest bruises of all the subgroups, as Rogers stumbled $1.47, or 2.2%, to $66.98, while TELUS gave back 75 cents, or 1.6%, to $47.71.

Energy lost some of its pep, as Precision Drilling shed a dime, or 5.9%, to $1.61, while Kelt Exploration slid nine cents, or 3%, to $2.91.

Financials were poorer, as TMX Group dwindled $1.94, or 1.7%, to $114.41, while Genworth MIC doffed 82 cents, or 1.6%, to $49.16

Gold proved the brightest of the gaining groups, as IAMGOLD shot higher 30 cents, or 6.9%, to $4.65, while Torex Gold tore its way up 99 cents, or 5.2%, to $19.93.

Among materials, First Majestic Silver climbed 66 cents, or 5%, to $13.98, while MAG Silver jumped 58 cents, or 3.8%, to $15.88.

Among tech issues, Shopify sprang up $17.53, or 3.6%, to $499.15, while Quarterhill took on four cents, or 2.2%, to $1.88.

On the economic beat, Statistics Canada said manufacturing sales fell 1.2% to $58.0 billion in June, following a 1.6% increase in May.

The agency says the petroleum and coal product and food industries weighed down sales in June, while the primary metal industry posted the largest increase.

ON BAYSTREET

The TSX Venture Exchange gained 6.83 points, or 1.2%, to 576.68

Seven of 12 Toronto subgroups lost ground Tuesday, as communications hesitated 1.3%, energy dipped 1.2%, and financials fell 0.9%.

The five gainers were led by gold, ahead 2.8%, while materials advanced 1.2%, and information technology was stronger by 0.8%.

ON WALLSTREET

The Dow Jones Industrial Average fell for the first time in four sessions on Tuesday, paring some of the strong gains from the previous session as recession fears lingered.

The 30-stock index staggered 173.35 points to 25,962.44

The S&P 500 lost 23.14 points to 2,900.51

The NASDAQ plunged 54.25 points to 7,948.56

Still, the Dow has recovered a large chunk of its 800-point drop from Wednesday while the S&P 500 and NASDAQ have also regained some of their losses from that day.

Home Depot helped keep losses in check. Shares of the home improvement retailer rose 4.4% on better-than-expected earnings. However, Home Depot warned tariffs could hit consumer spending and cut its full-year revenue outlook.

Chip stocks contributed to Tuesday’s decline. Micron Technology ditched 1.7%, and Advanced Micro Devices slid 2.4%. Netflix shares pulled back 3.4%.

Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all traded lower as Treasury yields pulled back.

Equities rose sharply on Monday as a rebound in bond yields continued, easing ongoing recession fears. The White House has also stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.

Various media sources both reported the Trump administration was discussing a cut to payroll taxes as a way to mitigate slower economic growth. A White House official pushed back on the reports, saying cutting payroll taxes "is not something under consideration at this time."

Traders also looked ahead to the release of the Federal Reserve’s minutes from its July meeting. The central bank cut rates by 25 basis points last month, citing "global developments" and "muted inflation." The Fed minutes are scheduled for release Wednesday at 2 p.m. ET.

Prices for the benchmark 10-year U.S. Treasury regained lost ground, lowering yields to 1.55% from Monday’s 1.61%. Treasury prices and yields move in opposite directions

Oil prices gave up three cents to $56.18 U.S. a barrel.

Gold prices brightened $5.90 to $1,517.50 U.S. an ounce.