TSX Runs Out of Steam in Final Hour

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Equities in Canada’s largest market went for a slide in the final hours of trading on Tuesday, as weakness by gold and other resources spilled over into other sectors.

The S&P/TSX Composite Index descended 108.49 points to end the session Tuesday at 16,497.01

The Canadian dollar bounced 0.25 cents higher to 75.13 cents U.S.

Gold stocks took the worst pounding, as Yamana Gold doffed 85 cents, or 9.9%, to $7.73, while Alacer Gold got bruised 85 cents, or 6.3%, to $12.66.

Among materials, First Majestic Silver faltered $2.07, or 12%, to $15.25, while Pan American Silver lost $5.77, or 11.9%, to $42.62.

Health-care got roughed up as well, with Canopy Growth surrendering $1.39, or 5.9%, to $22.54.

Financials did what they could to balance things out, with ECN Capital climbing 22 cents, or 4.7%, to $4.93, while Great West Lifeco added 82 cents, or 3.1%, to $27.43.

In the consumer discretionary sector, Martinrea International collected 43 cents, or 4.1%, to $10.96, while Magna International gained $2.14, or 3.2%, to $69.76.

In the communications field, Quebecor moved up 60 cents, or 1.8%, to $33.46, while Corus Entertainment hiked nine cents, or 3.6%, to $2.57.

A report in the Globe and Mail says Federal Finance Minister Bill Morneau could lose his job amid disagreements with Prime Minister Justin Trudeau over how to steer the economy through the coronavirus outbreak.

Vancouver based NetCents announced a collaboration with Visa introducing the NetCents Visa credit card. The co-branded card enables crypto currency wallet holders and traders real-time seamless purchasing power using crypto currencies for in-store and online transactions with the more than 40 million merchants that accept Visa worldwide.

NetCents shares doffed 18 cents, or 12.5%, to close the session at $1.26.

ON BAYSTREET

The TSX Venture Exchange docked 30.22 points, or 4%, to finish Tuesday at 717.45.

The 12 TSX subgroups were evenly split by the close, with gold tumbling 7.8%, materials falling 6.1%, and health-care weakening 2.1%.

The half-dozen gainers were led by financials, ahead 1.4%, consumer discretionary stocks, up 1.2%, and communications, better by 0.7%.

ON WALLSTREET

The S&P 500 fell on Tuesday, snapping a seven-day winning streak, as declines in some of the major tech names mounted thwarted the broader market index’s run to an all-time high.

The Dow Jones Industrials lost 104.53 points, to greet the closing bell at 27,686.91.

The S&P 500 suffered its first negative day in eight, docking 26.78 points to 3,333.69, for its worst day since July 23.

The once high-flying NASDAQ plummeted 185.77 points, or 1.7%, to conclude the session at 10,782.82.

Facebook and Amazon each fell more than 2% along with Microsoft. Apple and Netflix were down 3.4% and 3%, respectively. Alphabet dipped 1.1%. Those losses offset gains from shares that benefit from the economy reopening.

Gap shares were up more than 2% and Norwegian Cruise Line advanced 3.4%. Wynn Resorts and Simon Property also closed higher.

Both the S&P 500 and Dow traded higher earlier in the day after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first COVID-19 vaccine.

While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn’t pricing in how quickly a valid one could be ready.

A Johnson & Johnson executive also told Reuters the company could produce 1 billion doses of its vaccine candidate if it proves to be successful.

Goldman Sachs over the weekend raised its economic growth outlook, predicting at least one vaccine approved by the end of this year and widespread distribution of the drug by the second quarter of next year.

Prices for the 10-Year Treasury stumbled, raising yields to 0.65% from Monday’s 0.58%. Treasury prices and yields move in opposite directions

Oil prices dropped 39 cents to $41.55 U.S. a barrel.

Gold prices lost $115.10 to $1,924.60 U.S. an ounce.