Equities in Toronto swung to a loss by the end of Tuesday, hit by notable declines in the telecom and financial sectors. Buying momentum in energy and mining shares also slowed down.
The S&P/TSX composite index fell into negative territory 49.31 points to close Tuesday at 14,376.24
The Canadian dollar gained 0.26 cents at 77.21 cents U.S.
Telecoms were the main culprit among the losing subgroups, as TELUS lost 82 cents, or 1.8%, to $44.05, while BCE turfed a dollar, or 1.8%, to $53.52.
Another big drag, particularly on the industrial sector, was Canadian Pacific Railway, which tumbled $11.09, or 5.4%, to $195.26, having reported softer-than-expected quarterly results and reduced 2015 revenue guidance. Bombardier was pummeled 10 cents, or 5.3%, to
$1.78.
Utilities also suffered, as Fortis dipped 92 cents, or 2.4%, to $36.77, and TransAlta faltered 19 cents, or 2.1%, to $9.05.
Gold stocks, however, provided some buffer, as Torex Gold hiked 17 cents, or 20%, to $1.02. B2Gold was the most actively traded stock, gained two cents, or 1.3%, to $1.52, on 5.9 million shares.
ON BAYSTREET
The TSX Venture Exchange faded 2.29 points to 614.68.
Eight of the 14 TSX subgroups were lower, as telecoms skidded 1.7%, industrials went south 1.3%, and utilities slid 1.1%.
The half-dozen gainers were led by gold, up 2.5%, materials, hiking 1%, and global base metals, up 0.6%.
ON WALLSTREET
U.S. stocks closed sharply lower on Tuesday, with lackluster earnings from a few blue chips pressuring the Dow Jones industrial average 1%.
The Dow Jones industrial average collapsed 181.12 points, or 1% -- off its lows of the day -- to 17,919.29, as IBM and United Technologies plunged about 5.9% and 7%, respectively.
The S&P 500 doffed 9.08 points to 2,119.20. The NASDAQ index moved lower 10.74 points from Monday’s all-time high to 5,208.12.
IBM reported earnings after the close Monday that missed on revenue, which fell for the 13th consecutive quarter. Both earnings per share and revenue were 13% lower than the year-ago period.
United Technologies earned $1.73 U.S. per share for the second quarter, two cents above estimates, with revenue shy of forecasts. The industrial conglomerate also cut its full-year forecast, in part to reflect the just-announced sale of its Sikorsky Aircraft unit to Lockheed Martin.
Another blue chip, Verizon, closed 2.3% lower as revenue came in below estimates. The telecom firm did post earnings three cents above estimates with second-quarter profit of $1.04 per share. Wireless revenue was up 5.3% compared to a year earlier, while FiOS revenue increased by 10%.
Verizon also weighed on the telecommunications sector, closing 1.7% lower as the worst performer in the S&P 500.
Tech giants Apple and Microsoft post quarterly results after the close. The iPhone maker closed 1% lower and Microsoft ended 0.8% higher.
Companies reporting earnings before the bell Tuesday included Travelers, Baker Hughes and Bank of NY Mellon.
Prices for 10-year U.S. Treasuries were gained slightly, lowering yields to 2.34% from Monday’s 2.38%. Treasury prices and yields move in opposite directions.
Oil prices took on 21 cents a barrel to $50.36 U.S.
Gold prices fell $9.20 to $1,097.60 U.S. an ounce.
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