The Toronto stock market was pulled down Tuesday, pressured by the falling price of gold and oil amid news that Syria has agreed to put its chemical weapons under international control to be dismantled, reducing political tensions.
The S&P/TSX composite index greeted noon down 34.30 points to 12,820.34, off its lows of the morning.
The Canadian dollar moved higher 0.17 cents to 96.56 cents U.S.
The gold sector on the TSX sustained the biggest losses, with shares in Barrick Gold down 3.1%, or 62 cents, at $19.30.
Meanwhile, shares in smartphone maker BlackBerry Ltd. lost most of the gains it earned on Monday after a report came out that the sale of the company was not as close as some may believe. The company's stock dropped 5.3%, or 63 cents, to $11.33.
Stronger-than-expected industrial output reinforced other signs that China's economy was stabilizing after slowing for more than two years, just as major emerging markets brace for potential fallout from an expected trimming of U.S. stimulus.
On the domestic economic front, Canada Mortgage and Housing Corporation reported this morning that August housing starts fell more than expected to 180,291. The market call had been for a reading of 190,000.
The July figures were revised slightly higher to 193,021 from the 192,853 originally reported.
ON BAYSTREET
The TSX Venture Exchange fell 6.11 points to 945.83
Eight of the 14 Toronto subgroups were positive by noon, led by metals and mining, up 1.6%, while global base metals rallied 1% and real-estate advanced 0.7%.
The half-dozen laggards were weighed by a 3.8% drop in gold stocks, while materials slid 1.4% and information technology dipped 0.9%.
ON WALLSTREET
Investors had a lot to be optimistic about Tuesday: Upbeat data from China, easing Syria concerns and a much-anticipated Apple event later in the day.
The Dow Jones Industrials screamed higher by 96.72 points to break for lunch at 15,159.80. The S&P 500 index gained 9.24 points to 1,680.95. The NASDAQ gained 14.26 points to 3,720.44
The NASDAQ is now at its highest level since September 2000. The Dow is just 3% below its all-time high from early August, while the S&P 500 is less than 2% shy from its all-time peak.
On the corporate front, shares of Apple were slightly lower as investors await the company's release of the next generation of iPhones, rumoured to be colorful and cheaper to produce. The event is being held at 1 p.m. ET. But the stock has run up sharply since Apple's last earnings report.
Shares of Urban Outfitters tumbled after it warned that its third-quarter same-store sales, a key measure for retailers, would only grow at a mid-single digit pace, below analysts forecasts.
Netflix shares rose to a new all-time high above $307 U.S. per share, surpassing their previous record of $304.79 U.S. reached in July 2011.
Nike, Goldman Sachs and Visa were also in focus, as the three will be the newest members of the Dow, replacing Alcoa, Hewlett-Packard and Bank of America. Shares of Goldman, Nike and Visa all rose on the news. Alcoa and HP fell slightly while BofA was up more than 1%.
The broader market was likely moving higher again as concerns about a U.S.-led military strike on Syria have been pushed to the back burner. A military strike had seemed imminent last month and caused some extreme market volatility recently.
But politicians in Washington continue to debate the pros and cons of a strike. In addition, Secretary of State John Kerry raised the possibility Monday of avoiding an attack if Syria were to give up its chemical weapons.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.94% from Monday’s 2.90%. Treasury prices and yields move in opposite directions.
Oil prices docked $2.48 to $107.04 U.S. a barrel.
Gold prices sank $21.20 at $1,365.50 U.S. an ounce.
