Lower readings continued Tuesday for stocks in Toronto, as apprehension as to the timing and height of rate hike by the U.S. Federal Reserve continued to linger.
The S&P/TSX reversed 198.44 points, or 1%, to close out Tuesday 19,544.12.
The Canadian dollar lost 0.37 cents to 77.19 cents U.S.
In utilities, Transalta Renewables staggered 93 cents, or 5.4%, to $16.23, while Boralex lost $1.35, or 3.2%, to $41.34.
Gold stocks were hit hard, with Seabridge Gold down 64 cents, or 3.6%, to $17.02, while Kinross Gold stumbled 20 cents, or 3.7%, to $5.27.
Among communication concerns, BCE staggered $2.74, or 3.5%, to $63.67, while Corus Entertainment slipped eight cents, or 2%, to $4.01.
On the economic front, Statistics Canada reported Tuesday manufacturing sales increased 1.7% in April, mainly on higher sales of petroleum and coal products, motor vehicles, and primary metals.
Elsewhere, CBC News reports Ottawa will announce an end today to COVID-19 vaccine mandates for domestic travel on planes and trains and outgoing international travel.
ON BAYSTREET
The TSX Venture Exchange was clobbered 21.53 points, or 3.2%, to 650.37.
All 12 TSX subgroups crumbled Tuesday, led by utilities, down 2.4%, communications swooned 2.1%, and gold, falling 2%.
ON WALLSTREET
Stocks fell on Tuesday as the markets struggled to rebound from Monday’s steep selloff and rates surged ahead of a key monetary policy announcement from the Federal Reserve.
The Dow Jones Industrials tumbled 151.91 points to 30,364.83.
The S&P 500 dipped 14.15 points to 3,735.48, falling further into bear market territory and more than 21% off its high.
The NASDAQ Composite hung onto gains of 19.12 points to 10,828.35.
Shares of Oracle jumped more than 9% after the software company reported an earnings beat boosted by a “major increase in demand” in its infrastructure cloud business.
FedEx shares soared 14% after upping its quarterly dividend by more than 50% and announcing it would add three new directors to its board. The stock was on pace for its best day in more than 20 years.
Boeing picked up 2%, and McDonald’s rose about 1%, paring back some of the Dow’s losses. Utilities slipped 3% and consumer staples fell 2%, dragged down by a more than 3% loss for Procter & Gamble and Clorox.
Dow Transports jumped 2% buoyed by gains from FedEx and CH Robinson and was on pace for its best day since March.
Travel stocks slipped again with shares of Norwegian Cruise Line and Royal Caribbean down more than 1%. Delta also dipped 2%.
Tech saw a brief rally during the trading session, led by shares of Tesla and Nvidia. Growth areas like technology have suffered in recent weeks as investors rotate into safe-haven sectors like consumer staples, causing the NASDAQ to fall more than 30% off its highs.
Those losses came as expectations grow for the Fed to hike rates more than initially anticipated. Media reports circulated Monday that the Fed will “likely” consider a 75-basis-point increase, which is greater than the 50-basis-point hike many traders had come to expect. The Wall
Street Journal reported the story first.
Investors digested another important inflation reading of May’s producer price index on Tuesday. It showed wholesale prices rise 10.8% and hover near a record pace.
Treasury prices jumped, lowering yields to 3.47% from Monday’s 3.38%. Treasury prices and yields move in opposite directions.
Oil prices fell back $2.54 to $118.39 U.S. a barrel.
Gold prices faltered $22.00 to $1,809.80 U.S. an ounce.
