The Toronto stock market tumbled more than 1% Tuesday afternoon, joining other global markets in pulling back, amid worries about the possible ramifications of western countries intervening in Syria's civil war.
The S&P/TSX composite index plummeted 169.09 points, or 1.3%, to end Tuesday at 12,591.21, as two of the big Canadian banks turned in strong earnings reports.
The Canadian dollar forged ahead 0.22 cents to 95.45 cents U.S.
Bank of Montreal posted net income of $1.137 billion or $1.68 cents per share, up from $970 million or $1.42 per share in the same year-earlier period.
Revenue rose to $4.05 billion from $3.88 billion. Adjusted net income was $1.136 billion, also $1.68 cents per share. Analysts expected $1.52 in adjusted earnings per share and revenue of $3.96 billion and BMO shares gained seven cents to $65.85.
Scotiabank has increased its quarterly dividend by two cents to 62 cents per share and posted quarterly net income of $1.768 billion or $1.37 per diluted share, compared with net income of $2.051 billion or $1.69 per diluted share in the same year-earlier period.
Revenue rose to $5.52 billion from $5.51 billion. Last year's results benefited from an after-tax gain of $614 million on the sale of Scotia Plaza in Toronto. Ex-items, profit rose 17% to $1.32 a share, beating estimates by two cents but its shares slipped $1.13 to $57.56.
The TSX gold sector ran down as geopolitical worries boosted bullion prices Goldcorp dipped $1.38, or 4.2%, to $31.49.
The base metals component declined, even as signs of improving economies in the U.S. and China pushed copper prices higher with the September contract in New York up one cent at $3.33 U.S. a pound.
First Quantum Minerals declined 97 cents, or 5.2%, to $17.86 while Teck Resources fell 73 cents to $26.85.
The financials sector was a major weight, with TD Bank down $1.22 to $87.74, ahead of the release of the bank's earnings on Thursday
The energy sector rose while the price of oil moved well above $108 U.S. a barrel Tuesday amid the latest round of worry centred on the Middle East. Canadian Natural Resources gained 33 cents to $31.76 while Husky Energy declined 57 cents to $29.55.
ON BAYSTREET
The TSX Venture Exchange dumped 17.84 points to 936.74.
All 14 Toronto subgroups were lower on the day. Gold turned south and lost 3.9%, while metals and mining declined 3.8% and materials slid 3.7%.
ON WALLSTREET
Fears over a possible U.S. military strike against Syria spooked investors Tuesday.
The Dow Jones Industrials fell 170.33 points, or 1.1%, to end a turbulent Tuesday at 14,776.10
The S&P 500 index dropped 25.53 points to 1,631.25. The NASDAQ swooned 79.05 points to 3,578.52
Investors moved into assets deemed "safe," pushing up the prices of gold and U.S. and German government bonds. Oil prices also surged on fears in the Middle East.
Still, Tuesday's selloff was relatively mild. What's more, major U.S. indexes are still up between 13% and 19% in 2013.
Shares of jewelry retailer Tiffany & Co. initially rose on better-than-expected quarterly results, but then dipped as investors worried about slowing U.S. sales.
Shares of electronics retailer Best Buy fell after its founder Richard Schulze announced that he would begin selling his stake in the retailer in October. Schulze attempted to take Best Buy private last year but was rebuffed by the board.
Shares in struggling department store operator J.C. Penney were up more than 3% at one point Tuesday following the news that activist shareholder Bill Ackman sold his entire stake of more than 39 million shares. But as the day progressed, shares of the retailer dipped with the rest of the market.
Economically speaking, U.S. investors got more good news about the housing market. Prices for homes in the nation's 20 largest cities in June rose 12.1% over the last year. That was down slightly from the previous month, but still shows that housing continues to rebound.
Prices for the 10-year U.S. Treasury gained, lowering to 2.72% from Monday’s 2.80%. Treasury prices and yields move in opposite directions.
Oil prices hiked $3.08 to $109 U.S. a barrel.
Gold prices leaped $22.20 to $1,415.30 U.S. an ounce.
