TSX Clings to Positive Territory

Denison, Methanex in Focus

Canada's main stock index rose to a record high on Tuesday, led by healthcare and industrial stocks, as investors bet on central banks sticking to a loose monetary policy against the backdrop of a slowdown in the post-pandemic economic rebound.

The TSX Composite gained 14.31 points to reach noon at 20,835.74, another intraday record.

The Canadian dollar subtracted 0.57 cents to 79.21 cents U.S.

Denison Mines gained 14 cents, or 8%, to $1.89, while Methanex took on $2.21, or 4.7%, to $49.69, the biggest gainers on the TSX.

ON BAYSTREET

The TSX Venture Exchange slumped 9.24 points, or 1%, to move into noon hour at 913.98.

Seven of the 12 TSX subgroups were lower in the first hour, with real-estate plunging 1%, gold off 0.9%, and consumer staples sliding 0.6%.

The five gainers were led by financials, up 0.6%, while health-care and consumer discretionary stocks each accumulated 0.4%.

ON WALLSTREET

The Dow Jones Industrial Average fell on Tuesday amid lingering concerns about the delta variant’s impact on the economic reopening.

The 30-stock index plummeted 230.06 points to 35,139.03, dragged down by a 2% loss in Boeing’s stock.

The S&P 500 lost 12.03 points to 4,523.40, after hitting all-time highs last week.

The NASDAQ Composite moved up 26.21 points, to 15,389.72.

Goldman Sachs downgraded its economic outlook over the weekend, citing the delta variant and fading fiscal stimulus. Goldman now sees 5.7% annual growth in 2021, below the 6.2% consensus. The firm cut its fourth-quarter gross domestic product outlook to 5.5%, down from 6.5%.

Boeing shares were lower after the Wall Street Journal reported deliveries for the 787 Dreamliner would likely be further delayed. PPG Industries, a paint maker, warned that sales may fall short this quarter because of logistics issues and higher commodity costs. Shares of PPG Industries ticked 2% lower in early trading.

Drug stocks including Johnson & Johnson, Merck and Amgen were slightly lower after Morgan Stanley downgraded the three stocks.

Year-to-date, the Dow is up 15%, the S&P is up 20.4% and the NASDAQ is up 19.3%, although investors and analysts are still on the lookout for a major correction in September.

Prices for 10-Year Treasurys sagged, raising yields to 1.37% from Friday’s 1.32%. Treasury prices and yields move in opposite directions.

Oil prices reversed $1.16 to $68.13 U.S. a barrel.

Gold prices plunged $36.90 to $1,796.80 U.S. an ounce.