Stocks in Canada’s biggest centre continued lower midday Tuesday with most of its sectors under pressure as market sentiment around the world took a hit from a 6% plunge in Chinese shares, which helped push commodity prices to multi-year lows.
The S&P/TSX composite index remained negative 44.55 points – off its lows of the morning -- to greet noon at 14,206.98
The Canadian dollar regained 0.06 cents at 76.48 cents U.S.
The most influential decliners on the index included pipeline operator Enbridge Inc, which fell 1.5% to $55.05, and Barrick Gold, which sank 3.4% to $9.95. First Quantum Minerals Ltd plunged 6.4% to $7.93.
In corporate news, Brookfield Asset Management said on Monday it is buying Australian port and rail freight firm Asciano for $6.6 billion to form a global logistics company. Brookfield shares were off 0.5% at $44.92
ON BAYSTREET
The TSX Venture fell 3.36 points to 567.95.
All but three of the 14 TSX subgroups were lower midday, as metals and mining got shelled 5%, global base metals suffered a 3% loss, and materials swooped 1.1% lower.
The three gainers were health-care, haler by 0.5%, telecoms, better by 0.3%, while consumer discretionary peeked up 0.1%.
ON WALLSTREET
U.S. equities traded in a narrow range on Tuesday as Wall Street digested the latest plunge in Chinese stocks, more housing data and a couple of Dow component earnings.
The Dow Jones industrial average faded 21.68 points to 17,523.50, led lower by Wal-Mart and with Home Depot leading advancers.
The S&P 500 slid 4.01 points to 2,098.43, with energy leading seven sectors lower and consumer discretionary leading advancers.
The NASDAQ index fell 16.23 points to 5,075.47, as biotechnology stocks fell about 0.2% and Apple traded flat.
Investors also took into account the earnings release of two Dow Jones industrial average components: Wal-Mart and Home Depot.
Wal-Mart reported quarterly earnings that missed analysts' expectations and also cut its full-year guidance, while Home Depot posted better than expected same-store sales. Shares of Wal-Mart were down about 3%, while Home Depot's stock rose over 2.5%
In other corporate news, sporting goods retailer Dick's Sporting Goods posted earnings per share that came slightly above expectations, while revenue came in line with Wall Street's estimates. Dick's also raised its full-year guidance.
Urban Outfitters posted quarterly earnings per share of 52 cents U.S., beating estimates by three cents. Still, revenue and same-store sales both missed expectations.
Wireless carrier Sprint is doing away with two-year contracts in favor of a business model in which customers lease their phones.
Petrobras may have to pay $1.6 billion U.S. or more to settle U.S. probes into a corruption scandal, according to Reuters.
Overnight, China's Shanghai Composite dropped 6.12 percent and closed at its lowest level since Aug. 7 amid renewed concerns that the Chinese government could further devalue the yuan.
The People's Bank of China set the Chinese currency's midpoint rate at 6.3966 against the dollar, but the yuan fell against the greenback during Asia trading to about 6.40.
Investors stateside are also awaiting the release of the minutes from the Federal Reserve's July meeting, which are scheduled to be released Wednesday at 2 p.m.
Tuesday also saw the release of U.S. housing starts data for July, which came in at 1.206 million, above what economists expected and near an eight-year high. June's starts were also revised higher to a 1.20-million-unit rate from the previously reported 1.17-million-unit pace.
Overnight, China's Shanghai Composite dropped 6.1% and closed at its lowest level since Aug. 7 amid renewed concerns that the Chinese government could further devalue the yuan.
The People's Bank of China set the Chinese currency's midpoint rate at 6.3966 against the dollar, but the yuan fell against the greenback during Asia trading to about 6.40.
Prices for 10-year U.S. Treasuries slumped a bit, raising yields to 2.18% from Monday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices picked up 37 cents a barrel to $42.24 U.S.
Gold prices deducted $2.20 to $1,116.20 U.S. an ounce.
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