Stocks in Canada’s largest market moved into the red by the end of Tuesday’s session, weighed mostly by losses in energy and health-care stocks, after cannabis concerns were enjoying days of spectacular growth.
The S&P/TSX Composite Index fell 72.93 points by the end of Tuesday’s session to 16,298.88
The Canadian dollar was unchanged from Monday at 80.46 cents U.S.
Energy stocks took some bruising, particularly, TransCanada Corporation, bowing 36 cents to $59.66, and Suncor, sliding 26 cents to $47.02
Among resource stocks, Teck Resources was down $1.54, or 3.9% at $37.09, and First Quantum Minerals shed 17 cents to $19.43.
Marijuana stocks took a step back from Monday's gains, with Aphria Inc losing 12 cents to $21.58, while rival Canopy Growth settled 11 cents to $36.39.
Tech stocks, though, kept rolling, particularly Constellation Software, climbing $49.00, or 6.7%, to $786.00
Consumer staples made some headway, notably Tim Hortons parent Restaurant Brands, up 69 cents to $77.06, while Metro took on only four cents to $40.47.
ON BAYSTREET
The TSX Venture Exchange faltered 7.92 points to 888.27
Eight of the 12 TSX subgroups had passed over to the negative side by the closing bell, as energy slid 1.8%, health-care decreased 1.3%, and materials demurred 1.1%
The three gainers proved to be information technology, up 0.7%, consumer staples, ahead 0.4%, and real-estate, taking on 0.3%. Financial stocks were unchanged on the day.
ON WALLSTREET
U.S. stocks closed lower on Tuesday, pulling back from record highs set earlier in the session, as investors weighed the possibility of a government shutdown.
The Dow Jones Industrials surrendered gains of nearly 300 points on the day, to drop 10.33 points to 25,792.86. The Dow also posted its biggest one-day reversal since Feb. 10, 2016.
This morning, the blue-chip crossed the 26,000-point threshold, thus taking just 12 calendar days to move from 25,000 to 26,000, making it the fastest 1,000-point move on record for the index. It first traded above 25,000 on Jan. 4.
The S&P 500 slipped 9.82 points to 2,776.42, having traded above 2,800 for the first time.
The NASDAQ composite index reversed 37.38 points to 7,223.69
Lawmakers in the States need to pass a spending bill by the end of Friday to avoid a government shutdown. A point of contention between Republicans and Democrats is an immigration bill which Democrats want to pass. Those talks have complicated efforts to keep the government open.
UnitedHealth posted better-than-expected earnings and sales, sending the stock up 1.9%. Citigroup reported adjusted earnings that surpassed estimates, while revenue came in line with expectations. Citigroup shares rose 0.4%.
Elsewhere, Merck shares jumped 5.8% after announcing positive Phase 3 results for its Keytruda drug, which is aimed at treating cancer.
Even with Tuesday’s losses, equities are off to a strong start for the year, with the Dow, S&P 500 and NASDAQ jumping at least 3.8% in 2018. A stronger U.S. economy, tax reform, and optimism maid the corporate earnings season have been key catalysts for the market.
Earnings season is off to a strong start thus far. Of the S&P 500 companies that had reported as of Friday, 69% have surpassed earnings-per-share estimates while 85% have beaten expectations on the top line
Prices for the benchmark 10-year Treasury note regained ground it had lost, lowering yields to 2.54% from Friday’s 2.55%. Treasury prices and yields move in opposite directions. Markets were closed Monday for Martin Luther King Day.
Oil prices dropped 49 cents a barrel to $63.81 U.S.
Gold prices $4.10 to $1,339.00 U.S. an ounce.
