Canada's benchmark index extended losses for a third straight session on Tuesday, as weakness in energy and metal prices due to rising COVID-19 cases in China weighed on commodity stocks
The S&P/TSX Composite Index remained in the red 111.7 points to reach noon Tuesday at 21,069.08
The Canadian dollar faded 0.10 cents to 78.10 cents U.S.
Among individual stocks, Canadian Pacific Railway fell 13 cents to $98.08, after thousands of workers threatened to strike from Wednesday, potentially disrupting the movement of grain, potash and coal at a time of soaring commodity prices.
Economically speaking, the Canadian Real Estate Association said home sales recorded over Canadian MLS Systems climbed 4.6% between January and February.
Statistics Canada said manufacturing sales rose 0.6% in January mostly due to higher sales of petroleum and coal product and wood products.
Canada Mortgage and Housing Corporation reported the trend in housing starts was 251,579 units in February, down from 253,864 units in January.
ON BAYSTREET
The TSX Venture Exchange backtracked 5.68 points to 811.89.
All but three of the 12 TSX subgroups were lower in the early afternoon, with energy falling 3.1%, consumer staples shedding 2.4%, and real-estate off 0.6%.
The three gainers proved to be information technology, up 1.3%, gold, shinier 0.8%, and consumer discretionaries, ahead 0.2%.
ON WALLSTREET
The S&P 500 rose on Tuesday for its first gain in four days, as oil prices continued to drop further below $100 and a reading of wholesale inflation came in lighter than expected.
The Dow Jones Industrials leaped 293.7 points by noon Tuesday to 33.238.94.
The much-broader index recovered 48.37 points, or 1.2%, to 4,221.48.
The NASDAQ Composite regained 209.27 points, or 1.7%, to 12,790.44.
Tech stocks led the bounce after recent losses. Microsoft, Netflix and Alphabet rose more than 2%, while Apple and Meta Platforms gained more than 1%. Oracle climbed 5%.
Disney, McDonald’s and Procter & Gamble, all up about 3%, helped pull the Dow higher.
Airline stocks got a boost after five major carriers raised their revenue outlooks. United and American each rose 9%, while Delta climbed 8%.
Meanwhile, a drop in oil prices put pressure on energy stocks. Halliburton, Occidental Petroleum and Schlumberger each lost more than 4%. The Energy Select Sector SPDR Fund was down 3.7%, on pace for its third straight negative day and its worst day since November.
The gains came as traders continued to eye the latest with ceasefire negotiations in Ukraine and China COVID lockdowns that could wreak havoc on tech supply chains. Investors were anticipating a big Federal Reserve monetary decision Wednesday, where the central bank is expected to hike rates for the first time since 2018.
A surge in energy prices in February led wholesale goods prices to their biggest one-month jump on record, the U.S. Labor Department reported Tuesday. The headline producer price index (PPI) rose 0.8% in February from the previous month. While that was slightly lower than the 0.9% estimated by Dow Jones, it still showed a 10% gain from the same time last year.
However, core PPI, which excludes food, energy and trade services, rose just 0.2%. That was below the expectation of 0.6%.
In Ukraine, the capital city of Kyiv announced a 35-hour curfew that begins at 8 p.m. local time following Russian missile strikes that hit several residential buildings in the city.
Russia and Ukraine were set to continue talks Tuesday, following a fourth round of negotiations Monday. Meanwhile, Russia is approaching a series of deadlines to make payments on its debt.
Treasury prices, gained ground, weighing yields to 2.12% from Monday’s 2.14%. Treasury prices and yields move in opposite directions.
Oil prices descended $8.04 to $94.97 U.S. a barrel.
Gold prices ditched $42.40 to $1,918.40 U.S. an ounce.
Stocks Vault as Oil Prices Fall
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