The downward woes continued for Canada's main stock index on Tuesday as deepening worries about the health of the global economy unnerved investors.
The S&P/TSX composite index resumed its downward course --- dropping 170.95 points, or 1.2%, to begin a short week at 14,056.41.
The Canadian dollar dropped 0.25 cents at 89.05 cents U.S.
Markets in Canada were closed Monday for Thanksgiving.
Canadian Pacific Railway Ltd has approached CSX Corp. about merging the two North American railroad operators to create a transcontinental carrier worth more than $60 billion, according to the Wall Street Journal. CP shares began the day down $2.42, or 1.1%, to $209.78.
Canaccord Genuity raised the target on Canadian Tire Corp. to $138 from $123, with buy rating. Canadian Tire shares gained 27 cents to $121.19.
National Bank Financial resumed coverage on Lumenpulse with an outperform rating. Lumenpulse stock plunged 86 cents, or 5.4%, to $15.01.
ON BAYSTREET
The TSX Venture Exchange faded 11.74 points to 815.39.
Among the 14 Toronto subgroups, three showed gains, led by gold, up 4.1%, materials, jumping 1.6%, and global base metals, advancing 1%.
The remainder took their lumps, most notably energy, stumbling 2.8%, industrials, sliding 2%, and consumer discretionaries, subsiding 1.4%.
ON WALLSTREET
U.S. stocks rose on Tuesday amid positive earnings results, rebounding after three days of brutal losses that sent the main benchmarks to their lowest levels in months.
The Dow Jones Industrials regained 55.39 points to 16,376.46.
The S&P 500 picked up 6.24 points to 1,880.98. The NASDAQ index restored 16.96 points to 4,230.62.
The S&P 500 on Monday closed at its lowest level since May 20 and fell below its 200-day moving average for the first time in nearly two years. The S&P 500’s breach of its moving average is significant because some market observers see it as a bearish signal that the market may be in store for further declines.
Meanwhile, investors welcomed better-than-expected earnings results from Citigroup Inc. and Johnson & Johnson, which outweighed downbeat German sentiment data that hit equities across Europe.
Citi shares popped up 2.9% after third-quarter profit and revenue rose from the year-earlier period. Citi also plans to pare back from retail banking in smaller countries.
Meanwhile, Wells Fargo & Co. shares slipped 2.2% even as the bank’s quarterly profit met expectations but revenue beat estimates.
J.P. Morgan Chase & Co. swung to a third-quarter profit as the bank rebounded from a year-earlier period in which it was hit by big legal charges. The bank’s profit per share and revenue narrowly missed expectations. J.P. Morgan shares fell 1.7%.
Johnson & Johnson shares picked up 1.6% after quarterly earnings climbed nearly 30% on higher pharmaceutical sales.
Domino’s Pizza Inc. was up 4.3% after the chain delivered better-than-expected results.
Among other stocks in focus, Versar Inc. surged 37%. Its PPS unit makes hazmat suits and mobile decontamination shelters. Other stocks linked to concerns over the Ebola virus continued a pattern of pushing higher.
Lakeland Industries Inc. and Alpha Pro Tech Ltd. fell more than 20%, after soaring during the previous few sessions on Ebola fears. Ebola stock trading volumes should raise red flags
In economic data, National Federation of Independent Business said its small-business optimism index fell 0.8 points to 95.3, which is five points below the pre-recession average.
Prices for 10-year U.S. Treasuries spiked, lowering yields to 2.22% from Monday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.38 to $84.36 U.S. a barrel.
Gold prices recovered $4.30 to $1,234.30 U.S. an ounce.
