The Toronto stock market stumbled toward the finish Tuesday as many sectors gave up early gains, even after some encouraging economic data.
The S&P/TSX composite index plummeted 56.36 points to end Tuesday at 12,257.18, after beginning the session in the green.
The Canadian dollar fell 0.23 cents Tuesday to 101.98 cents U.S.
Forbes & Manhattan Coal Corp. says it’s buying majority stakes in an operating coal mine and an undeveloped anthracite deposit in South Africa from Rio Tinto PLC for about $52.3 million plus royalties. Its shares were ahead two cents, or 3.1%, to 67 cents.
The TSX energy sector tumbled, as Imperial Oil dropped 18 cents to $45.97, while Suncor declined 59 cents to $32.18, and Canadian Natural Resources ducked back 56 cents to $30.92.
The gold sector rose as Barrick Gold fell 15 cents to $40.30, and Iamgold capsized 27 cents to $14.84.
December copper was ahead 3.8 cents to $3.77 U.S. a pound. Teck Resources surrendered 61 cents, or 2.1%, to $28.87 , while Thompson Creek Metals faded 16 cents, or 5.1%, to $2.99, and First Quantum Minerals dropped 39 cents to $20.81.
On the economic beat, Statistics Canada reported this morning that retail sales rose 0.7% in July, more than offsetting a decline in June. Gains were reported in eight of StatsCan’s 11 sub-sectors.
ON BAYSTREET
The TSX Venture Exchange plunged 20.25 points to 1,313.21
Of the 14 Toronto subgroups, eight lost ground by the close. Global base metals tossed aside 1.8%, while energy weakened 1.6%, and the metals and mining group slid 1.5%.
The half-dozen gainers were led by health-care stocks, up 0.9%, telecoms, up 0.3%, and information technology, nosing ahead 0.1%.
ON WALLSTREET
U.S. stocks drifted lower Tuesday afternoon as worries about global economic growth overshadowed positive reports on the U.S. housing market and consumer confidence.
The Dow Jones Industrial average was sharply lower, by 101.37 points, to finish at 13,457.50
The S&P 500 index subtracted 15.30 points, to 1,441.59, and the Nasdaq Composite Index got bruised 43.06 points to 3,117.73
Markets rose at the beginning of trading, on good vibes regarding housing and consumer confidence, but a gloomy outlook from Caterpillar weighed on sentiment. Shares of the construction and mining equipment maker slid, making it the worst performer on the Dow, after it cut its forecast for 2015.
Speaking at an industry conference in Las Vegas on Monday, Caterpillar CEO Doug Oberhelman said that the economic slowdown has been sharper than the company was anticipating, and modest growth over the next few years will affect the company's profitability.
The move downward also came after Federal Reserve Bank of Philadelphia president Charles Plosser said the central bank's latest round of stimulus measures is unlikely to help growth.
Investors continue to keep tabs on Europe's ongoing debt crisis as European Central Bank President Mario Draghi meets with German Chancellor Angela Merkel.
International Monetary Fund head Christine Lagarde warned Monday that the continent's policymakers need to implement a centralized banking authority and carry through with the European Stability Mechanism, a planned €500-billion fund to provide loans for troubled members of the 17-nation currency union.
Shares of Tesla sank Tuesday, after the electric car maker said production of its new Model S sedan will be slower than anticipated. The company said it has completed 255 Model S cars as of this past Sunday.
Payroll company Paychex's shares slipped after it posted strong first-quarter earnings.
Shares of tech company Red Hat fell following an earnings report that ended up short of expectations.
Google shares rose to fresh all-time high of $764.89 U.S. Tuesday. Google's stock has rallied 16% this year as the company continues to dominate in online searches and makes strides with its Android mobile platform.
Facebook edged lower, extending its losses from Monday's 9% plunge in the wake of a $15 U.S. price call for Facebook by Barron's.
Economically speaking, the S&P/Case-Shiller index showed home prices in 20 major U.S. cities rose for a sixth consecutive month, as the long-battered real estate market continues to recover.
Moreover, consumer confidence in the U.S. rose to a seven-month high in September. The Conference Board’s index increased to 70.3 this month from 61.3 in August, figures from the New York-based private research group showed today.
The September figure exceeded the most optimistic projection of economists, whose median estimate in a Bloomberg survey called for 63.1.
The price on the benchmark 10-year U.S. Treasury gained ground on the day, lowering yields to 1.68% from Monday’s 1.72%. Treasury prices and yields move in opposite directions.
Oil for November delivery sank 76 cents to $91.17 U.S. a barrel.
Gold futures for December delivery added $1.60 to $1,766.20 an ounce.
