Equities in Canada’s largest market handed back a substantial portion of its hard-earned gains Tuesday, as consumer and resource stocks suffered the biggest blows.
The TSX/S&P Composite tumbled 119.83 points to conclude Tuesday at 20,363.59
The Canadian dollar dissolved 0.33 cents to 79.21 cents U.S.
Metals and mining stocks took the worst bruising, as Hudbay Minerals succumbed 41 cents, or 5.1%, to $7.56, while Lithium Americas lost $2.07, or 9.6%, to $19.42.
In consumer discretionary issues, Magna International lost $3.29, or 3.1%, to $104.16, while BRP Inc. swooned $3.87, or 3.5%, to $105.33.
Energy also had a lousy time of it, with Vermilion Energy slipping 46 cents, or 5.5%, to $7.85, while Crescent Point Energy handed over nine cents, or 2.1%, to $4.11.
Consumer staples, however, tried to steady things out, as Empire Company tacked on 44 cents, or 1.1%, to $41.58, while Maple Leaf Foods added 23 cents to $26.99.
In communications, Rogers tacked on 51 cents to $63.88, BCE jumped 24 cents to $64.68.
In utilities, Northland Power gained a dollar, or 2.5%, to $41.00, while Capital Power prospered 40 cents to $42.74.
On the economic slate, Statistics Canada reported Canadian investors acquired a record $28.1 billion in foreign securities in June, largely purchases of US shares. Meanwhile, non-residents added $19.6 billion in Canadian securities to their holdings, mainly in the form of money market instruments.
What’s more, Canada Mortgage and Housing Corporation reported the trend in housing starts was 286,620 units in July, down from 293,085 units in June.
Moreover, the opposition Conservative Party set out its election platform on Monday, with leader Erin O’Toole pledging to bring back jobs lost to the COVID-19 pandemic and to balance the federal budget within 10 years.
ON BAYSTREET
The TSX Venture Exchange dropped 31.57 points, or 3.5%, to 874.10
Nine of the 12 TSX subgroups were lower on the day, weighed most by materials, plummeting 1.6%, consumer discretionary, off 1.5%, and energy, 1.3% less energetic.
The three gainers were consumer staples, stronger by 0.4%, communications up 0.2%, and utilities, up 0.1%,.
ON WALLSTREET
U.S. stock indexes fell Tuesday as July retail sales declined and concerns about slowing global economic growth intensified.
The Dow Jones Industrials stumbled 282.12 points from Monday’s all-time record to 35,343.28.
The S&P 500 dumped 31.63 points to 4,448.08.
The Dow and the S&P 500 each snapped five-day win streaks. Still, Tuesday’s losses came after the two indexes closed at record highs in the prior session.
The NASDAQ slipped 137.58 points to 14,656.18.
Home Depot fell more than 4% after reporting second-quarter results, weighing on the Dow. While quarterly earnings topped estimates, same-store sales rose 4.5% in the period, below the 5% consensus estimate of analysts polled by StreetAccount. U.S. same store sales increased by just 3.4%.
Walmart shares inched higher, then traded near the flatline after second-quarter earnings topped estimates. The retailer gained ground in groceries and reported a strong start to the back-to-school season.
Disappointing economic data from China on Monday intensified concerns about a slowdown in global growth. Chip stocks tumbled for a second day on Tuesday with the iShares Semiconductor ETF down roughly 2% and Nvidia about 2% lower. Shares of Tesla and Boeing, both also heavily reliant on China as a growth market, declined.
Meanwhile, technology names trended lower. Big Tech shares, including Google-parent Alphabet, Amazon, Apple and Facebook, traded in the red.
Elsewhere, health care shares saw strength with the S&P 500 Health Care Sector hitting a record high. United Health, Merck and Johnson & Johnson all traded in the green.
Retail sales declined 1.1% in July, a steeper drop than the 0.3% dip expected by economists surveyed by Dow Jones. The Census Bureau revised June’s reading to a 0.7% jump.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.26% from Monday’s 1.27%. Treasury prices and yields move in opposite directions.
Oil prices lost 53 cents to $66.76 U.S. a barrel.
Gold prices unloaded $2.80 to $1,787.00 U.S. an ounce.
