CORRECTS EARLIER NUMERICAL ERROR
Equity markets in Canada’s biggest centre sank to an eight-month low on Tuesday, bringing its drop from last month's record high to more than 10%, after a dim outlook for oil demand weighed on the commodity's price and on the shares of energy producers.
The S&P/TSX composite index lost 190.68 points, or 1.3%, to close Tuesday at 14,145.97.
The Canadian dollar dropped 0.84 cents at 88.46 cents U.S.
Markets in Canada were closed Monday for Thanksgiving.
With today's decline, one expert declared the market "officially in correction territory."
The Toronto stock market's heavyweight energy sector tumbled and is down about 26% since mid June. The market's benchmark TSX index has also been diving, shedding 10.5% since hitting a record high last month.
Shares of energy producers dropped as Canadian Natural Resources gave back 5% to $36.56, and Suncor Energy lost 1.5% to $36.10.
Financials declined as Royal Bank of Canada was down 1.1% at $78.79, and Bank of Nova Scotia fell 1.1% to $67.22.
Gold stocks provided one of the few spots of optimism, as AuRico Gold hiked 11.7% to $4.21, and Guyana Goldfields surged 5.2% to $2.82.
ON BAYSTREET
The TSX Venture Exchange dropped 23.96 points to 803.17.
Among the 14 Toronto subgroups, nine were down on the day, as energy stocks plummeted 3.7%, while consumer discretionaries descended 1.4%, and financials lost 1.1%.
The five gainers were led by gold, strengthening 3.7%, while materials and global base metals each climbed 2%.
ON WALLSTREET
Stocks failed to hold gains after a strong rally, as oil's late-day plunge overshadowed the bounce in tech, transports and industrials.
The Dow Jones Industrials finished in the red 5.88 points at 16,315.19.
The S&P 500 inched up 2.96 points to 1,877.70. The NASDAQ index gained 13.51 points to 4,227.17.
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.
Oil sank, with Brent and West Texas Intermediate both down more than 4% after the International Energy Agency cut its forecast for oil demand and said prices may drop further. More than a dozen energy names in the S&P 500 hit new 52-week lows.
Meanwhile, the Dow transports jumped more than 2%, as airlines recovered some of the losses made on fears of a wider Ebola outbreak hampering travel. FedEx and UPS, companies that also benefit from lower energy prices, rose, as Delta, UAL, Southwest and JetBlue moved higher.
Tech was helped by Skyworks Solutions, up more than 7% after the Apple supplier raised its guidance for earnings and revenue for the quarter ended in September. Intel, reporting after the close, also was trading higher.
The good news for semis comes after Microchip Technology lowered its forecast for its fiscal second quarter after chip sales fell short. Beaten-down chip names like Cree, RF Micro Devices and NXP Semiconductor also jumped, while Microchip was lower.
The earnings season has just gotten underway, and big bank earnings were mixed Tuesday but comments from CEOs were fairly upbeat. Citigroup was higher on an earnings beat, and JPMorgan was slightly lower after reporting an earnings miss but better revenue.
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 2.21% from Monday’s 2.29%. Treasury prices and yields move in opposite directions.
Oil prices fell $3.86 to $81.88 U.S. a barrel.
Gold prices recovered $3.50 to $1,233.50 U.S. an ounce.
