Meg, Trillium Bruised
Stocks took a pounding in Toronto Tuesday amid profit-taking, perhaps influenced by the words of U.S. Federal Reserve Jerome Powell and newly-minted Treasury Secretary Janet Yellen.
The TSX tumbled by Tuesday’s end 145.33 points to 18,669.80.
The Canadian dollar retreated 0.37 cents at 79.50 cents U.S.
Energy stocks, well, ran out of gas by the closing bell, with Meg Energy waning 57 cents, or 8.4%, and $6.18, while Vermilion Energy lost 79 cents, or 8%, to $9.12.
Among health-care issues, Trillium Pharmaceuticals shrank 70 cents, or 5.1%, to $13.15, while Bausch Health Companies swooned $1.24, or 3%, to $40.04.
In resource stocks, Hudbay Minerals dropped 73 cents, or 8.4%, to $8.00, while Teck Resources gave back $1.65, or 6.5%, to $23.66.
Consumer staples provided some lift by the close, with George Weston surging $5.61, or 5.5%, to $108.08, while Loblaw Companies increased in price $2.44, or 3.6%, to $69.39.
Among utilities, Brookfield Renewable Partners added 78 cents, or 1.5%, to $51.40, while Boralex strengthened 42 cents, or 1.1%, to $37.72.
In communications, Cogeco Communications grew $1.82, or 1.5%, to $122.41, while Shaw picked up 32 cents to $33.84.
Alberta is expected to see the fastest growth in renewable energy capacity between 2018 and 2023, the Canada Energy Regulator forecast, as new wind and solar projects help replace coal-fired electricity.
ON BAYSTREET
The TSX Venture Exchange stumbled 28.01 points, or 2.8%, to 968.82.
All but three of the 12 TSX subgroups were lower on the session, with energy faltering 4.2%, health-care, withering 2.9%, and materials off 2.7%.
The three gainers were led by consumer staples, ahead 1.2%, while utilities eked up 0.3% and industrials improved 0.4%.
ON WALLSTREET
U.S. stocks fell on Tuesday in an afternoon slide led by shares of companies with the most to lose if there are any hiccups in the global economic reopening from the COVID-19 pandemic.
The Dow Jones Industrials went for a tumble of 308.05 points to finish Tuesday at 32,423.15, as Caterpillar slipped 3.4%.
The S&P 500 slouched 30.07 points 3,910.52
The NASDAQ Composite took a header, losing 149.84 points, or 1.1%, to greet the closing bell at 13,227.70.
Travel and retail stocks sold off in lockstep amid fresh COVID restrictions globally. Shares of Carnival and Norwegian cruise lines slumped more than 7% each. American Airlines and United Airlines also dropped more than 6% apiece. Brick-and-mortar retailer Gap slid nearly 8%.
The World Health Organization said most regions of the globe are seeing an increase in new COVID cases as highly contagious variants continue to spread. Germany is extending its lockdown until April 18, while nearly a third of France entered a month-long shutdown on Saturday. Oil prices fell more than 6% amid the threat of a third wave of global infections.
The U.S. is administering about 2.5 million COVID vaccine shots every day. However, the number of new cases is increasing in 21 states as governors relax restrictions on businesses.
Also, a U.S. health agency expressed concern Tuesday that AstraZeneca may have included outdated information in trial results of its COVID-19 vaccine.
Since the low on March 23, 2020, both the S&P 500 and Dow have advanced more than 75%, marking the best start to a new bull market ever. The NASDAQ is up more than 90%.
On the pandemic front, a U.S. health agency expressed concern Tuesday that AstraZeneca may have included outdated information in trial results of its COVID-19 vaccine.
The U.S. is administering about 2.5 million COVID vaccine shots every day.
However, the number of new cases is increasing in 21 states as highly infectious variants spread and governors relax restrictions on businesses.
On Tuesday, Powell and Yellen made their first joint appearance Tuesday before the U.S. House Committee on Financial Services. The duo acknowledged the richly valued asset prices in the markets, but said that they are not worried about financial stability.
Prices for 10-Year Treasurys charged ahead, lowering yields to 1.62% from Monday’s 1.69%. Treasury prices and yields move in opposite directions.
Oil prices floundered $4.02 to $57.54 U.S. a barrel.
Gold prices stumbled $11.80 to $1,726.30.
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