The Toronto stock market tumbled almost 250 points Tuesday as investors looked past the majority government victory for the Conservatives and focused on headwinds facing equity markets.
The S&P/TSX Composite Index shed 242.14 points, or 1.7%, to conclude the day at 13,692.37
The Canadian dollar faded 0.23 cents to 104.96 cents U.S. Traders were relieved to see the Conservatives win a majority in Monday’s election as it removes a degree of uncertainty from the political landscape.
Canadian Natural Resources dropped 84 cents to $43.23 while Cenovus Energy was down 88 cents to $35.30.
Suncor Energy Inc. reported first quarter net earnings of $1.028 billion, or 65 cents per share. That compares to net earnings of $779 million, or 50 cents per share in the corresponding quarter a year ago.
Canada’s largest energy company also reported a 10% increase in its quarterly dividend to 11 cents per common share. Its shares declined $2.41 to $41.60.
The gold sector was off as Goldcorp Inc. faded $1.37 to $48.75 and Barrick Gold Corp. lost 99 cents to $46.25.
Silver prices also continued to retreat with the July contract down $4.09 to $42 U.S. an ounce.
The metal has been sliding for the past week after CME Group Inc., which owns Comex, increased margin requirements to trade silver metal three times.
Silver Wheaton lost 76 cents to $35.17.
The base metals component declined as the July copper contract in New York gained five cents at $4.23 U.S. a pound. First Quantum slid $4.16 to $129.92 while Teck Resources shed $1.42 to $50.47.
The financials sector also helped push the TSX lower, with Manulife Financial down 70 cents to $16.80 and Royal Bank fell 89 cents to $58.93.
There was also major acquisition activity for investors to chew over as conglomerate Onex Corp. announced it was selling injection moulding machine maker Husky International to Berkshire Partners and OMERS Private Equity for $2.1 billion U.S. Onex shares were 17 cents higher to $36.00.
ON BAYSTREET
The TSX Venture Exchange hurtled earthward 48.50 points to 2,158.90 while the Nasdaq Canada index shed 5.99 points to 700.14
In Toronto, all 14 subgroups were lower on the day. Gold stocks slid 3%, energy 2.8%, materials 2.7%.
ON WALLSTREET
In New York, stocks fought their way into positive territory by the end of trading Tuesday, as corporate earnings and a steep drop in the price of oil weighed on the broader market.
The Dow Jones industrial average gained but 0.15 points to 12,807.50
The S&P 500 was down 4.60 points to 1,356.62. The Nasdaq Composite Index retreated 22.46 points to 2,841.62
The biggest drag on blue chips was Pfizer, which reported earnings per share that beat by just a penny. The drug maker reaffirmed its outlook, but investors were hoping for more. Shares fell 4%.
The energy sector weighed on the broader market as oil prices retreated sharply. Chevron shares were down 3%, ConocoPhilips shares dropped more than 4% and Exxon Mobil was down less than 2%.
Meanwhile, the tech-heavy Nasdaq was weighed down by shares of Sears Holdings. The company's stock fell 9%, after it said its same-store sales fell nearly 4% in the latest quarter. Sears is holding its shareholder meeting Tuesday.
Semiconductor makers Nvidia and Micron Technologies contributed to the Nasaq's decline, with shares of both down more than 4%.
Economically speaking, the U.S. Commerce Department reported factory orders rose 3% in March, which was better than the 2.5% rise economists had forecast.
The government's main jobs report for April is due out Friday, and investors will be paying close attention. Jobs remain one of the biggest -- if not the biggest -- drivers of the economic recovery.
According to a new survey, economists expect 185,000 jobs to have been added in April.
General Motors shares rose 2%, after the company reported a 26% rise in April monthly car sales. Competitor Ford reported a 16.4% rise in April sales, but its shares were little changed by the news.
Credit card processor MasterCard reported earnings per share of $4.29 U.S., up 24% from the same time a year ago. The company cited an 11.1% increase in transactions as the reason for the first-quarter bump. Shares rose 3%.
Media company CBS issued its quarterly report after the closing bell.
The price on the benchmark 10-year U.S. Treasury moved higher, pushing yields down to 3.26% from Monday’s 3.29%. Treasury prices and yields move in opposite directions.
Oil for June delivery subsided $2.43 to $111.06 U.S. a barrel.
Gold futures for June delivery sank $24.50, to $1,532.40 U.S. an ounce.
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