Equity markets in Canada moved into the red by midday Tuesday as gold stocks slipped on hopes surrounding a potential COVID-19 vaccine and positive U.S.-China trade front.
The TSX slumped 78.45 points to greet noon EDT at 16,548.19.
The Canadian dollar gained 0.08 cents to 75.74 cents U.S.
The largest percentage gainer on the TSX was Bank of Montreal, which jumped $2.58, or 3.4%, to $79.43, after the lender posted upbeat third-quarter numbers. BMO shares
Its gains were followed by oil producer Crescent Point Energy, which rose 3.5 cents, or 1.4%, to $2.50.
Ballard Power Systems fell 70 cents, or 3.2%, to $21.13, while Aurinia Pharmaceuticals was down 29 cents, or 1.6%, to $18.19.
ON BAYSTREET
The TSX Venture Exchange slipped 8.41 points to 715.31.
All but two of the 12 TSX subgroups lost ground by lunch hour, with materials lurching lower 2.1%, gold trailing 2%, and real-estate plunging 0.9%.
The two gainers were information technology, picked up 0.7%, and financials, eking up 0.02%.
ON WALLSTREET
Stocks fell on Tuesday as Apple shares declined for the first time in six sessions and traders assessed the market’s recent run to all-time highs.
The Dow Jones Industrials plunged 186.73 points to 28,121.73.
The S&P 500 bowed 2.94 points from Monday’s all-time record at 3,428.34.
The NASDAQ Composite added 13.88 points to Monday’s all-time peak, at 11,393.60.
Apple dropped 1.6%, giving back some of its blistering rally into a record valuation. Boeing, Raytheon Technologies and Exxon Mobil also contributed to the Dow’s decline, as each stock fell at least 2.9%.
After the bell, S&P Dow Jones Indices said Salesforce.com will replace Exxon Mobil, Amgen will replace Pfizer and Honeywell International will replace Raytheon Technologies in the Dow average. The changes are driven by Apple’s coming stock split, which will reduce the technology weighting in the price-weighted average.
Salesforce, Amgen and Honeywell gained in pre-market trading while Exxon Mobil, Pfizer and Raytheon declined. Exxon has been a part of the average for nearly 100 years.
Traders also looked ahead to key data releases, including the latest figures on consumer confidence and new home sales, which were both set for release on Tuesday.
Stocks started out strong on hopeful news on the U.S.-China trade front.
In a statement, the Office of the U.S. Trade Representative said that both sided “progress and are committed to taking the steps necessary to ensure the success of the” phase one trade deal.
The two countries also “addressed steps that China has taken to effectuate structural changes called for by the Agreement that will ensure greater protection for intellectual property rights,” the statement said.
Prices for the 10-Year Treasury sagged, raising yields to 0.70% from Monday’s 0.65%. Treasury prices and yields move in opposite directions.
Oil prices acquired 50 cents to $43.12 U.S. a barrel.
Gold prices tumbled $16.50 to $1,922.70 U.S. an ounce.
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