Equity Markets Roughed up Tuesday

CN Takes Lumps

Canada's main stock index slipped on Tuesday, pressured by industrial shares as Canadian National tumbled after it offered to buy railroad operator Kansas City Southern for $30 billion.

The TSX hurtled lower 104.92 points to begin Tuesday’s trading session at 19,099.50.

The Canadian dollar poked ahead 0.03 cents to 79.88 cents U.S.

A report in the Wall Street Journal Tuesday said Canadian National Railway plans to make a $30-billion bid for railroad operator Kansas City Southern. CN shares backtracked $9.86, or 6.7%, to $138.30, easily the worst performer on the index.

The largest percentage gainers on the TSX were Spin Master, which jumped 61 cents, or 1.5%, to $40.90 and Altus Group, up $1.98, or 3.2%, to $64.00.

Cormark Securities initiates coverage on Boat Rocker Media with a buy rating, and a price target of $13.00. Boat Rocker shares were unchanged at $8.80.

CIBC raised the target price on Emera to $58.00 from $57.00. Emera gained 33 cents to $57.11.

RBC cuts the rating on PrairieSky Royalty to sector perform from outperform. PrairieSky slid 70 cents, or 5%, to $13.19.


The TSX Venture Exchange dished off 6.46 points to 922.71.

The 12 TSX subgroups were evenly split with energy docking 2.2%, industrials skidding 1.9%, and health-care ailing 1.8%.

The half-dozen laggards were lifted most by gold, brighter 0.8%, materials, ahead 0.4%, and consumer staples, 0.2% to the good.


U.S. stocks fell for a second day on Tuesday as strong corporate earnings failed to boost a market already near record highs.

The Dow Jones Industrial resumed their downward momentum, tossing off 168.79 points to open Tuesday at 33,908.84,

The S&P 500 subtracted 13.74 points to 4,148.52.

The NASDAQ Composite faded 42.49 points to 13,872.28.

Procter & Gamble shares were flat even after the consumer giant reported quarterly earnings that beat expectations with pandemic home-care trends lingering and beauty sales picking up.

Johnson & Johnson shares gained 1% following better-than-expected earnings and revenue. The company also reported $100 million in first-quarter sales of its COVID-19 vaccine that’s on hold in the U.S. while health regulators investigate a rare blood-clotting issue.

Another Dow component, Travelers Companies, rose slightly after quarterly results that topped Wall Street’s estimates. The company also raised its quarterly cash dividend and approved an additional $5 billion of share buybacks.

The first-quarter earnings season got off to a strong start last week as the major U.S. banks reported blowout numbers. Financials earnings have topped expectations by 38%, while others in the S&P 500 have surprised to the upside by 12%, according to data from Credit Suisse.

Tesla rebounded 1.7% after dropping more than 3% in the previous session as bitcoin — which makes up some of Tesla’s balance sheet— tanked over the weekend after hitting an all-time high of $64,841 Wednesday morning, according to data from Coin Metrics.

Streaming giant Netflix is slated to release numbers after the bell. Wall Street analysts expected Netflix to remain a winner in the streaming space even as the pandemic recovery improves.

Prices for 10-Year Treasurys gained, lowering yields to 1.58% from Monday’s 1.61%. Treasury prices and yields move in opposite directions.

Oil prices slumped four cents to $63.34 U.S. a barrel.

Gold prices recovered five dollars to $1,775.60 U.S. an ounce.