The Toronto stock market was firmly in the red Tuesday amid concerns over what central banks can do to stimulate a lacklustre global economic recovery
These include the failure of Japan's central bank to unveil more measures to boost that country's economy, whether the U.S. Federal Reserve will start to taper off some of its bond purchases and a court challenge on the legality of the European Central Bank's approach to the euro crisis.
The S&P/TSX Composite Index dropped 159.10 points, or 1.3%, to close Tuesday at 12,223.57
The Canadian dollar inched forward 0.04 cents to 98.15 cents U.S.
On the corporate front, Lululemon Athletica Inc. plunged $14.81, or 17.6% to $69.22 on the TSX after CEO Christine Day said after the close Monday that she was stepping down. Day will remain in the job until a successor is named. The yoga wear retailer also handed in earnings of 32 cents a share, beating expectations of 29 cents, and announced plans to de-list from the TSX.
Commodity prices backed off sharply Tuesday morning and the base metals component was lower while July copper retreated for a fourth day, down five cents to $3.19 U.S. a pound. First Quantum Minerals fell 65 cents to $17.37 while Turquoise Hill Resources dropped 29 cents, or 4.4%, to $6.31.
The gold sector fell as Barrick Gold faded 82 cents to $19.99.
Shares of Kinross Gold Corp. fell 41 cents to $6.03 after the company announced it was halting development of its Fruta del Norte project in Ecuador. The gold miner said after the close of markets Monday it would stop work on the project after it was unable to reach an agreement with the government of Ecuador on "key economic and legal terms."
The energy sector fell as Cenovus Energy shed 48 cents to $30.03 and Suncor Energy was 73 cents lower to $31.07.
Outside of the resource sector, financials also weighed on the TSX as Sun Life Financial was 47 cents lower to $29.84.
Tech stocks were also negative as Constellation Software dropped five dollars to $144.00.
Elsewhere, Telus Corp. shares fell 45 cents to $34.26 as the telecom called off its plan to buy small wireless provider Mobilicity after Ottawa signalled last week that it would not allow the deal.
Mobilicity will now go ahead with a recapitalization plan. The deal was contingent upon the federal government allowing the transfer of wireless spectrum owned by Mobilicity to Telus.
ON BAYSTREET
The TSX Venture Exchange slipped 9.45 points to end Tuesday at 937.27
All but one of the 14 Toronto subgroups were lower on the day, anchored mostly by gold stocks, down 3.6%, materials, off 2.9%, and the metals and mining, sliding 2.6%.
Health-care provide the lone holdout against the negative tide, climbing 1.2%.
ON WALLSTREET
June has been marked by market volatility and Tuesday was no exception.
The Dow Jones Industrials moved downward 116.57 points to conclude Tuesday at 15,122.
The S&P 500 index slid 16.68 points to 1,626.13. The tech-rich NASDAQ Composite dropped 36.82 to 3,436.95
After the strong run this year -- stocks have gained roughly 15% -- some say pullbacks should be considered healthy.
The biggest culprit behind the recent choppiness has been the growing concern about when the U.S. Federal Reserve will begin to slow the pace of its bond buying.
On the corporate front, Lululemon shares tanked after the yogawear maker announced that CEO Christine Day is stepping down.
Shares of Sprint Nextel rose after SoftBank, Japan's third-largest wireless carrier, increased its takeover offer.
Shares of Dole Foods surged after the company said its chairman and CEO, David Murdock, made a cash offer to buy the 60.5% of the company he doesn't already own. Murdock offered to pay a 17.6% premium to Monday's close.
Shares of aircraft maker Boeing slipped after the company trimmed its 20-year forecast for widebody jet demand, even as it raised its forecast for single-aisle jets.
Google announced that it would acquire mapping company Waze, but did not disclose a price tag.
Shares of Diamond Foods spiked after the company saw losses narrow and appointed a new CFO.
Prices for the 10-year U.S. Treasury jumped, lowering yields to 2.20% from Monday’s 2.22%. Treasury prices and yields move in opposite directions.
Oil prices were down 43 cents to $95.34 U.S. a barrel.
Gold prices off eight dollars to $1,378.00 U.S. an ounce
