Stocks in Canada’s biggest market fell for a second straight day, as commodities prices retreated and Valeant Pharmaceuticals International Inc. tumbled after giving new sales and earnings forecasts for 2016.
The S&P/TSX Composite Index came off its lows of the day, finishing down 77.23 points to close Tuesday at 13,400.31
The Canadian dollar slid 0.53 cents to 74.85 cents U.S.
Valeant sank 50.7%, or $46.44, to $45.14, its biggest decline since 1993. The company issued a statement saying sales for the year will be $11 billion to $11.2 billion, and adjusted earnings per share will be $9.50 to $10.50.
Valeant said in December that the fallout from losing mail-order pharmacy Philidor Rx Services LLC would slash millions of dollars from the company’s earnings in 2016. The company predicted sales of $12.5 billion to $12.7 billion at the time, with adjusted earnings per share of $13.25 to $13.75.
Among base-metals stocks, First Quantum Minerals gave back 35 cents, or 4.4%, to $7.65.
On a more positive note, gold gathered more strength Tuesday, as Barrick Gold strengthened 88 cents, or 4.6%, to $18.98, while Centerra Gold gained 26 cents, or 4.3%, to $6.33.
Internationally, the Bank of Japan said it would maintain its massive asset buying program at existing levels and suggested it may roll out more stimulus as it struggles to reach an elusive inflation target.
ON BAYSTREET
The TSX Venture Exchange lost 3.38 points to 567.41
Seven of the 13 TSX subgroups were lower on the day, with health-care off 11.7%, metals and mining skidding 4.1%, and information technology dropping 0.9%%
The half-dozen gainers were led by gold, zooming 2.5%, materials, adding 1%, and consumer staples, up 0.8%.
ON WALLSTREET
Stocks on Wall Street closed mostly lower Tuesday as a decline in health-care stocks weighed and investors awaited the Wednesday afternoon conclusion of the Federal Reserve meeting.
The Dow Jones Industrial average overcame a 100-point-plus plunge to gain 22.4 points and end the day at 17,251.53, with Apple leading advancers and Pfizer the greatest decliner.
The S&P 500 remained negative 4.85 points to 2,014.79, with health-care leading six sectors lower and information technology the top advancer.
The NASDAQ index fell 21.61 points to 4,728.67.
Apple traded more than 2% higher, after Morgan Stanley said it sees above-consensus iPhone demand of about 56.5 million units, with the strongest growth from China. Morgan Stanley is overweight on the stock with a $135.00 U.S. price target.
The iPhone maker is also expected on Tuesday to submit its latest response to the U.S. Justice Department in its high profile encryption case.
Shares of Valeant Pharmaceuticals plunged more than 40% after the firm gave earnings and revenue guidance far below expectations.
Economically speaking, retail sales fell a less-than-expected 0.1% in February, but January's figure was revised down to show a 0.4% decline versus the previously reported 0.2% increase.
U.S. producer prices fell 0.2% in February, but were unchanged over the last 12 months. That marked the first time since January 2015 that the year-on-year PPI did not decline.
The NAHB Housing Market Index held steady at 58 in March.
Business inventories rose 0.1% in January.
The Federal Open Market Committee kicked off its two-day meeting Tuesday, due to release its statement and economic projections Wednesday afternoon. Fed Chair Janet Yellen is also due to hold a press conference.
Prices for the 10-year Treasury faltered slightly, raising yields back to Monday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices sank 72 cents a barrel to $36.46 U.S.
Gold prices docked $2.18 to $1,233.09 U.S. an ounce.
