Equities in Toronto slid on Tuesday, tracking weakness in global markets as investors braced for key earnings reports and a big U.S. interest rate hike this week, while e-commerce giant Shopify dropped on cutting 10% of its workforce.
The TSX docked 8.59 points to open the Tuesday session at 19,095.89.
The Canadian dollar fell 0.08 cents to 77.73 cents U.S.
Investors are looking for results from commodity-linked companies including miner First Quantum Minerals later in the day and energy companies such as Enbridge and Imperial Oil this week.
First Quantum opened Tuesday up 29 cents, or 1.5%, to $19.85.
Enbridge shares took on 36 cents to $56.85.
Imperial Oil shares added 97 cents, or 1.7%, to $58.14.
Canada will examine the resiliency of telecom networks across the country before approving Rogers Communications’ proposed $20-billion purchase of Shaw Communications.
Rogers started Tuesday off 22 cents to $60.05, while those for Shaw dipped 27 cents to $34.43.
ON BAYSTREET
The TSX Venture Exchange hesitated 0.35 points to 607.91.
Seven of the 12 TSX subgroups were negative, with information technology stumbling 4.3%, health-care off 1.8%, and consumer discretionary sliding 1.4%.
The five gainers were led upwards by energy, soaring 2%, gold, brighter 1.9%, and materials, mightier by 1.1%.
ON WALLSTREET
U.S. stocks fell Tuesday after Walmart cut its earnings forecast, sending other retail shares lower and adding to concern that consumer spending might not be strong enough to keep the U.S. out of a recession.
The Dow Jones Industrials scaled back 77.35 points to kick off Tuesday at 31,912.69.
The S&P 500 gave back 24.33 points to 3,942.51.
The NASDAQ tumbled 128.76 points, or 1.1%, to 11,653.90.
Walmart said Monday that it cut its quarterly and full-year profit estimates because of rising food inflation. This alarmed investors who deliberated the implications for other retail stocks. The big-box retailer said higher prices are spurring consumers to pull back on general merchandise spending, particularly in apparel.
Walmart plunged 8% Tuesday and dragged other retailers with it. Target and Kohl’s each dropped about 5%, while Amazon and Dollar General each fell 4%. Costco shed 3%.
Elsewhere, General Motors fell 3.3% after the company missed earnings estimates, citing supply chain disruptions stemming from Russia’s war on Ukraine and global COVID lockdowns. Rival Ford is scheduled to report results after the bell.
UPS shares fell 3%, despite the company posting earnings and revenue beats for the second quarter, after the shipping giant reported declines in its international and supply chain businesses.
On the flip side, Coca-Cola shares rose 2.2% after the beverage giant topped earnings and revenue expectations, citing a sales volume recovery from the pandemic and higher pricing.
Shares of McDonald’s added nearly 1.7% following mixed second-quarter results, in which net sales were hurt in part by the closure of locations in Russia and Ukraine, but international growth elsewhere fueled a rise same-store sales.
Industrial stocks gave a positive showing too. Shares of 3M rose 5% after beating earnings and revenue estimates and announcing plans to spin its health care business into a separate publicly traded company.
General Electric posted better-than-expected results citing recovery in the aviation industry that boosted its jet engine business. Its shares gained almost 6%.
Treasury prices regained lost ground, lowering yields to 2.73%, from Monday’s 2.81%. Treasury prices and yields move in opposite directions.
Oil prices picked up 75 cents to $97.45 U.S. a barrel.
Gold prices dropped $2.40 to $1,716.70 U.S. an ounce.
