Canadian stocks slumped soon after the opening on Tuesday, as earnings continued to pour in.
The S&P/TSX composite index slid 57.13 to start Tuesday’s session at 14,639.90
The Canadian dollar was stronger by 0.46 cents at 91.73 cents U.S.
BCE Inc, Canada's largest telecommunications company, reported a better-than-expected adjusted profit, helped by its acquisition of TV and radio content producer Astral Media and strong growth in its wireless business. BCE shares retreated 38 cents to $48.58 in the early trading day.
WestJet Airlines Ltd, Canada's second-largest carrier, reported a better-than-expected quarterly profit due to a rise in traffic and ticket prices as well as expansion into new destinations. WestJet dropped 24 cents a share to $24.73.
CIBC raised the rating on Canfor Corp to outperform from sector perform. Canfor shares advanced eight cents to $26.22.
RBC raised the target price on Parkland Fuel to $22 from $21, maintaining a sector perform rating. Parkland shares gained 17 cents to $20.25.
On the economic beat, Statistics Canada reported this morning that our exports declined 1.4% in March, while imports edged up 0.4%.
As a result, Canada's trade surplus with the world narrowed from $847 million in February to $79 million in March.
Elsewhere, Western University’s Ivey Purchasing Managers Index (PMI) by the end of April 2014 stood at 54.1, compared to 55.2 in March, and 52.2 in April 2013.
The PMI asks company purchasing managers whether they spent more, less, or the same the month before. A figure above 50 shows an increase while below 50 shows a decrease.
ON BAYSTREET
The TSX Venture Exchange inched upward 0.78 points to 1,010.23
All but one of the 14 Toronto subgroups were lower, as information technology dipped 1.4%, health-care ailed 0.9%, and global base metals were 0.8% weaker.
The lone gainer was in telecoms, up 0.3%.
ON WALLSTREET
Tuesday has been a lucky day for stock market bulls, but this particular Tuesday is off to a lackluster start.
The Dow Jones Industrial Average fell 61.29 points to begin the session at 16,469.26
The S&P 500 subtracted 5.24 points to 1,879.42, and the NASDAQ composite index moved backward 8.81 points to 4,129.25.
The S&P 500 has gained every Tuesday for the past eight weeks. So far this year, the index has advanced every Tuesday except for two.
Twitter shares led the plunge this morning, hitting a new low in early trading as the "lock-up" period for company insiders to sell the stock expired. Under federal securities law, company founders and executives must wait six months before selling any shares following an initial public offering.
The stock is now trading under $35 U.S. a share -- that's still above its IPO price of $26 U.S. -- but it's the lowest trading price for the social media giant.
It was a far better morning for Apple. Shares are firmly above $600 U.S, a level not seen October 2012. Apple recently announced a stock split that will take place in early June.
Drugmaker Merck announced that it will sell its consumer care business to Bayer AG for $14.2 billion U.S. It was the latest in a recent spate of larger mergers in the pharmaceutical industry. Merck fell slightly in early trading.
DirecTV shares gained after the satellite TV company reported stronger-than-expected earnings, despite a quarterly slide in net profit year over year.
Office Depot shares also surged after announcing solid earnings and plans to close 400 stores.
Well-known brands Groupon, Disney and Whole Foods will report after the close.
Prices for 10-year U.S. Treasuries eked higher, lowering yields to 2.60% from Monday’s 2.61%. Treasury prices and yields move in opposite directions.
Oil prices picked up 23 cents to $99.71 U.S. a barrel.
Gold prices dipped $1.80 to $1,307.50 U.S. an ounce.
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