Equities in Canada’s largest market moved diffidently away from the breakeven point Tuesday, as energy stocks sputtered and tech stocks also weighed things down.
The S&P/TSX Composite Index dropped 8.4 points to end Tuesday at 16,502.42
The Canadian dollar handed back 0.17 cents to 76.48 cents U.S.
Among industrials, which ruled the roost Tuesday, Canadian Pacific Railways cruised along, gaining $12.55, or 4.1%, to $322.21, while Richelieu Hardware climbed $1.33, or 5.5%, to $25.68.
Among consumer discretionary stocks, The Stars Group popped 69 cents, or 3.2%, to $22.13, while Martinrea International acquired 21 cents, or 2%, to $10.73.
In the health-care field, Aurora Cannabis leaped 23 cents, or 2.5%, to $9.36, while Extendicare gained 13 cents, or 1.5%, to $8.56
Energy weighed heaviest on those subgroups losing ground, as MEG Energy dropped 18 cents, or 3.2%, to $5.38, while Enerplus lost 31 cents, or 3.3%, to $9.17.
In techs, Absolute Software sifted off 18 cents, or 2.3%, to $7.82, while Evertz Technologies slipped 34 cents, or 1.8%, to $18.76.
Communications also got bruised, as Quebecor slipped 35 cents, or 1.1%, to $31.03, while TELUS fell 49 cents, or 1%, to $48.32.
On the economic front, Statistics Canada reported that foreigners acquired $10.2 billion of Canadian securities in May, following two months of divestment.
At the same time, Canadian investment in foreign securities resumed to reach $4.1 billion, led by purchases of U.S. corporate bonds.
ON BAYSTREET
The TSX Venture Exchange regained 1.13 points to close Tuesday at 580.17
Seven of the 12 Toronto subgroups remained in the red till the close, as energy slumped 1.7%, information technology slouched 1%, and communications dipped 0.7%.
The five gainers were led by industrials, up 1.4%, as consumer discretionary and health-care each improved 0.6%.
ON WALLSTREET
Stocks fell from record highs on Tuesday after President Donald Trump cast doubt on the trade progress between China and the U.S.
The Dow Jones Industrial Average erased 23.53 points from Monday’s all-time high to 27,335.63, ending a four-day winning streak.
The S&P 500 docked 10.26 points to 3,004.04, and snapped a five-day winning streak.
The NASDAQ Composite slid 35.39 points to 8,222.80
Goldman Sachs’s strong results were driven by the company’s investment banking and trading divisions. Goldman shares rose 1.9%.
J.P. Morgan Chase’s results also topped estimates and its stock rose 1.1%. Johnson & Johnson, however, fell 1.6% despite reporting a 42% profit surge in the previous quarter
So far, just over 5% of S&P 500 companies have reported calendar second-quarter earnings. Of those companies, more than 85% have posted better-than-expected earnings.
Investors will welcome the strong start to the earnings season, but the outlook for corporate profits remains bleak. Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter.
United Airlines and CSX are among the companies due to report after the bell Tuesday. Morgan Stanley, BlackRock, and American Express are scheduled to report earnings later this week.
Trump said the two countries have a "long way to go" on trade, adding the U.S. can slap tariffs on an additional $325 billion worth of Chinese goods "if we want."
Trump’s comments come after China and the U.S. agreed not to ratchet up trade tensions in an effort to restart negotiations. China and the U.S. have slapped tariffs on billions of dollars worth of each other’s imports since last year. The ongoing trade war has sparked fear of slower economic growth around the world. They also come as the U.S. corporate earnings season kicks into full gear.
Prices for the benchmark 10-year U.S. Treasury ducked, raising yields to 2.11% from Monday’s 2.09%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.53 at $58.05 U.S. a barrel.
Gold prices slid eight dollars to $1,405.50 U.S. an ounce.
