Toronto stocks started August on a dismal note, weighed by losses in materials and energy shares on weak commodity prices, while traders assessed Canada's July manufacturing sector data.
The TSX tumbled 115.51 points nearing noon Tuesday at 20,511.13.
The Canadian dollar fell 0.55 cents to 75.24 cents U.S.
A bunch of Canada's energy and real estate companies are set to report quarterly earnings later in the day.
Shares of Silvercrest Metals plunged $1.39, or 18.4%, to $6.16, becoming the worst performer on the benchmark index, after two brokerages cut price target on the precious metals miner stock.
On the economic calendar, the Global S&P Manufacturing PMI rose to 49.6, from 48.8 in June, but the headline index pointed to the slowest deterioration in operating conditions in the current contractionary sequence.
A dock workers' union on Canada's West Coast and port employers have provisionally agreed to a new labour contract, averting an immediate strike, diminishing worries of supply-chain constraints and inflation.
ON BAYSTREET
The TSX Venture Exchange turned downward 2.52 points, to 625.
All but one of the 12 TSX subgroups declined, with health-care falling 2.9%, gold down 2%, and materials stumbling 1.5%.
The four gainers were led by industrials, up 0.5%, while consumer discretionary and communications each nosed ahead 0.2%.
ON WALLSTREET
The S&P 500 fell to start August as investors navigated a flood of corporate earnings reports and assessed a fresh batch of economic data.
The Dow Jones Industrials reversed 17.88 points to pause for lunch Tuesday at 35,541.65
The S&P 500 Index slumped 15.26 points to 4,573.70.
The NASDAQ index shed 52.78 points to 14,291.
Pharmaceutical giant Merck reported a smaller-than-expected loss and revenue that exceeded expectations thanks to strong Keytruda sales. Merck shares rose 1.6%. Caterpillar also reported better-than-expected earnings and revenue, boosting shares 7%.
Pfizer added 1.7% even after posting mixed results due to plummeting COVID product sales, while Uber lost nearly 5% on mixed earnings.
This week marks the busiest stretch of second-quarter earnings with more than 160 S&P 500 constituents slated to report results. More than half of the companies in the broad market index have already reported, with 82% topping earnings expectations, according to FactSet.
This has fueled some hopes that the economy will be able to avoid a recession as inflation shows signs of cooling.
Despite the performance so far, analysts are bracing for a 7.1% earnings decline from a year
Prices for the 10-year Treasury tumbled, raising yields to 4.04% from Monday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices sank 56 cents to $81.02 U.S. a barrel.
Gold prices darkened $24.80 to $1,984.40 U.S. an ounce.
