Canada's main stock index took a header at the open on Tuesday, reversing the previous session's gains, with Potash Corp shares expected to be a major decliner after a surprise strategic shift by a Russian rival.
The S&P/TSX Composite Index fell 97.48 points to commence business at 12,571.56
The Canadian dollar eased 0.03 cents to 97.38 cents U.S.
Russia's Uralkali has dismantled one of the world's largest potash partnerships by pulling out of a venture with its partner in Belarus, a move it expects will cause global prices to plunge by 25%.
As a result, shares in Potash Corp plummeted $8.83, or 22.7%, to $30.07, while shares in rival Agrium Inc fell $6.24, or 6.7%, to $87.60
Oil sands producer MEG Energy Corp forecast a strong second half as it expects production to begin at the next phase of its flagship project in the fourth quarter. MEG shares took on 45 cents to $33.08
WestJet Airlines Ltd reported a 5% rise in second-quarter profit and said it expected traffic and revenue growth to remain strong in the current quarter. WestJet shares dipped 21 cents to $19.92.
Thomson Reuters posted a 2% rise in second-quarter revenue on the strength of its legal and tax and accounting businesses, and reaffirmed its forecast for 2013. Thomson shares fell 55 cents to $35.82
TD Bank Group said it expects to report a third-quarter net loss in its insurance business due to floods in Alberta and hailstorms in the Greater Toronto area, joining a list of Canadian companies hurt by bad weather. TD shares slid 83 cents to $88.06
On the economic front, Statistics Canada reported this morning that its industrial product price index rose 0.3% in June, as a result of higher prices for motor vehicles and other transportation equipment as well as petroleum and coal products.
The agency also reports its raw materials price index advanced 0.3% during the same month, mostly because of higher prices for animals and animal products and crude oil.
ON BAYSTREET
The TSX Venture Exchange swooned 2.88 points to 921.81
The 14 Toronto subgroups were evenly split between gainers and losers, although materials plummeted 5.2%, while global base metals fell 1.8%, and metals and mining backtracked 1.6%.
The seven gainers were led by information technology, up 0.9%, health-care, ahead 0.4%, and industrials, better by 0.2%.
ON WALLSTREET
U.S. stocks staged a modest bounce back early Tuesday.
The Dow Jones Industrials picked up 47.77 points to begin Tuesday at 15,569.70
The S&P 500 index recovered 5.45 points to 1,690.78. The NASDAQ improved 19.30 points to 3,618.44
Dow component Pfizer reported a drop in earnings that nonetheless beat analysts' forecast by a penny a share. Insurer Aetna reported improved operating income that also beat forecasts as it raised its full-year earnings guidance.
Late Monday, controversial nutritional supplements company Herbalife reported better-than-expected earnings and raised its guidance, sending its shares higher.
Sprint reported a loss for the quarter as it shut down its Nextel network and moved millions of subscribers to its Sprint platform. The loss comes even as the company boosted sales.
Shares of BP fell after the company's quarterly results missed market expectations. BP reported a drop in earnings due, in part, to lower oil prices and higher taxes. BP is also expecting to pay more in U.S. settlements related to the massive Gulf of Mexico oil spill in 2010.
Barclays shares fell after the bank revealed it will be selling $8.9 billion U.S. in new shares at a discounted price to existing shareholders to meet capital requirements set out by regulators.
Shares of Mosiac Co., a major U.S. potash producer, plunged after a Russian potash producer pulled out of a cartel, a move expected to send prices of the fertilizer raw material sharply lower.
CBS and Time Warner Cable agreed to continue negotiations on the fee the cable operator pays to carry Showtime as well as CBS in the nation's largest markets. The new deadline that could see three million Time Warner Cable customers lose the networks was pushed back to Friday.
U.S. investors will receive a variety of economic and corporate news Tuesday as they await the latest reading on economic growth and statement from the Federal Reserve on Wednesday, as well as Friday's jobs report for July.
The S&P/Case-Shiller home price index jumped 12.2% in May. That marked the biggest year-over-year gain since 2006, near the peak of the housing bubble.
Later this morning, the U.S. Conference Board will release its monthly reading on consumer confidence.
Prices for the 10-year U.S. Treasury were unchanged, leaving yields at Monday’s 2.58%.
Oil prices faltered 79 cents to $103.76 U.S. a barrel.
Gold prices were $9.90 lower to $1,318.50 U.S. an ounce.
