The TSX lost 185.35 points to open Tuesday at 20,105.19.
The Canadian dollar eked up 0.02 cents to 74.31 cents U.S.
Suncor Energy on Monday joined its global peers in reporting a sharp drop in quarterly profit, as oil and gas prices retreated from last year's peak. Suncor shares grabbed 35 cents to $42.75.
Macroeconomic notes Tuesday, the Canadian Real Estate Association said national home sales edged down 0.7% month-over-month in July. Actual (not seasonally adjusted) monthly activity came in 8.7% above July 2022. Elsewhere, the Consumer Price Index (CPI) rose 3.3% on a year-over-year basis in July, following a 2.8% increase in June. On a seasonally adjusted monthly basis, the CPI rose 0.5% in July.
Motor vehicle sales totaled 165,400 in June, compared to 165,600 in the prior-year month.
Lastly, manufacturing sales for June declined 1.7%, mainly on lower sales of petroleum and coal products, chemicals, and machinery.
Traders are betting on a 77.32% probability for the BoC to hold interest rates steady in its September meeting.
ON BAYSTREET
The TSX Venture Exchange dipped 1.55 points to 595.52.
All 12 TSX subgroups fell out of the gate, with materials skidding 2%, gold down 1.6%, and financials off 1.4%.
ON WALLSTREET
Stocks fell Tuesday as concern over the state of the global economy and a decline in banks pressured Wall Street.
The Dow Jones Industrials shed 295.05 points to begin Tuesday at 35,012.58.
The S&P 500 index withered 37.47 points to 4,452.25.
The NASDAQ index slumped 111.34 points to 13,676.99.
Shares of JPMorgan Chase, Citigroup, Wells Fargo and Bank of America were lower by nearly 2%. Those moves come after Fitch warned it may have to downgrade dozens of banks, including JPMorgan Chase. Last week, Moody’s lowered its rating on 10 U.S. while putting some big institutions on downgrade watch.
A packed earnings week for the largest retailers kicked into gear Tuesday. Home Depot reported earnings per share and revenue that beat analyst expectations, pushing its stock 1.7% higher. Later in the week, traders will parse releases from Target and Walmart.
On the data front, July’s U.S. retail sales data came in higher than expected, indicating a stronger-than-expected consumer. Retail sales increased 0.7% month-over-month. Meanwhile, economists had estimated a 0.4% increase, according to Dow Jones.
Sentiment across the globe was downbeat after disappointing data out of China and a surprise rate cut from the country’s central bank.
Industrial production in China increased by 3.7% in July from the year-earlier period, missing expectations. Retail sales also grew less than expected from the year-earlier period. Meanwhile, the People’s Bank of China lowered rates by 15 basis points to 2.5%. However, the rate cut failed to soothe investor concerns and instead raised more worry about an emerging property crisis in China.
Prices for the 10-year Treasury were unchanged, keeping yields at Monday’s 4.19%.
Oil prices slipped $1.90 to $80.61 U.S. a barrel.
Gold prices doffed $8.40 to $1,935.60 U.S. an ounce.
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