Stocks Falter Yet Again

MEG, Rogers in Focus

Canada's main stock index opened lower on Tuesday as weaker metal prices weighed on mining stocks, while investors eyed upcoming central bank meetings that will likely herald an end to easy monetary policy.

The S&P/TSX Composite resumed its downward trek at Tuesday’s open, dropping 304.2 points, or 1.5%, to 20,267.10.

The Canadian dollar slumped 0.15 cents at 79.06 cents U.S.

Shopify said proposed changes to its fulfillment network would help merchants on its ecommerce platform compete better with big retailers and would not reduce capacity, fueling a recovery in its shares on Monday. Shopify shares moved earthward $103.07, or 8.7%, to $1,085.39.

Scotiabank resumed coverage on Dentalcorp Holdings with an outperform rating. Dentalcorp shares lost 22 cents, or 1.4%, to $15.50.

RBC raised the target price on MEG Energy to $18.00 from $15.00. MEG shares hesitated 23 cents, or 1.7%, to $13.46.

CIBC raises the rating on Rogers Communications to outperform from neutral. Rogers shares let go of 58 cents, or 1%, to $60.15.

ON BAYSTREET

The TSX Venture Exchange moved lower 6.29 points to 832.12.

All but one of the 12 TSX subgroups began the day lower, with information technology sliding 3.1%, health-care down 2.3%, and consumer discretionary off 2.2%.

Only gold held out against the negative tide, squeezing higher 0.1%.

ON WALLSTREET

U.S. stocks fell Tuesday, a day after one of the biggest comebacks on record for the major averages.

The Dow Jones Industrials collapsed 804 points, or 2.3%, to 33,449.

The S&P 500 gave back 123.75 points, or 2.8%, to 4,280.

The NASDAQ stumbled 364.46 points, or 2.7%, to 13,490.67.

The Dow on Monday rallied from a more than 1,100-point loss to close up higher and snap a six-day losing streak. The NASDAQ reversed a 4.9% decline from earlier in the day to finish positive — its biggest rebound since 2008. The S&P 500 also rallied from major losses to close up.

The selling on Tuesday was broad with less than 10 stocks in the S&P 500 trading in positive territory.

General Electric was the biggest drag on the benchmark index with an 8.5% loss after the company topped quarterly earnings expectations, but missed revenue estimates. Home Depot fell 4.2%, Travelers dipped 3.8% and Nike eased 2.1%, weighing on the blue-chip Dow.

American Express was among the handful of gainers on the S&P 500 after an earnings beat, rising 3.7%.

The Federal Reserve’s two-day policy meeting begins Tuesday as investors look for updates on when the central bank will raise interest rates and by how much. Market participants expect the Fed to signal a rate hike as soon as March and more policy tightening on the table to address high inflation.

Investors also monitored geopolitical tension at the Russia-Ukraine border. President Joe Biden spoke with European leaders Monday amid fears of a possible Russian invasion of Ukraine.

Prices for 10-year Treasurys regained strength, lowering yields to 1.74% from Monday’s 1.77%. Treasury prices and yields move in opposite directions.

Oil prices gained 41 cents to $83.72 U.S. a barrel.

Gold prices brightened $5.70 to $1,847.40 U.S. an ounce.