TSX Lower as Energy Prices Weigh
Canada's main stock index fell at open on Tuesday, dragged down by energy stocks tracking a fall in oil prices as the rapid spread of COVID-19 infections in India raised concerns about demand.
The TSX lost 133.96 points to open Tuesday at 19,227.92
The Canadian dollar inched up 0.05 cents to 82.73 cents U.S.
Alimentation Couche-Tard said that it has priced a $1-billion debt offering, including inaugural green bonds. Couche-Tard stock lost 40 cents to $42.20.
French train maker Alstom earmarked a further 632 million euros ($768 million U.S.) of provisions for risks on its earlier purchase of Bombardier's rail unit, while adding its integration of the Bombardier business was on track. Bombardier shares were flat at 88 cents.
BMO raised the target price on Recipe Unlimited to $31.00 from $21.00. Recipe shares cooked 72 cents, or 3.5%, to $21.50.
Credit Suisse raises target price on Nuvei Corp. to $80.00 from $65.00, Nuvei shares docked 39 cents to $81.02.
Piper Sandler cut the target price on Tilray to $15.00 from $26.00. Shares in Tilray doffed 28 cents, or 1.5%, to $17.94.
The TSX Venture Exchange tumbled 22.03 points, or 2.3%, to 918.31.
All but one of the 12 subgroups were down in the first hour, with consumer discretionary stocks loosening 1.9%, utilities down 1.2%, and real-estate slipping 1%.
Only health-care held out against the tide, and only 0.03% at that.
U.S. stocks fell for a second day on Tuesday as the rotation out of relatively higher-priced technology shares intensified.
The Dow Jones Industrials continued their downward trend, unloading 410.91 points, or 1.2%, to 34,331.91,
The S&P 500 retreated 44.78 points, or 1.1%, to 4,143.65.
The NASDAQ Composite stumbled 145.86 points, or 1.1%, to 13,256.
Big Tech stocks were all in the red once again Tuesday. Apple dropped more than 2%, while Facebook, Alphabet and Amazon were all down more than 1%.
Tesla shares, the poster boy for growth stocks with lofty valuations and expectations, fell nearly 4%. A Reuters report that the electric carmaker halted plans to expand its Shanghai plant into an export hub, also aided the decline.
The market will face a key test on Wednesday with the release of inflation data. Investors fear a scenario where the Federal Reserve is forced to cut back its easy money policies to curb inflation, before the economy has fully recovered from the pandemic.
Prices for 10-Year Treasurys lost ground, raising yields to 1.62% from Monday’s 1.60%. Treasury prices and yields move in opposite directions.
Oil prices regained 26 cents to $65.18 U.S. a barrel.
Gold prices lost $7.40 to $1,830.20 U.S. an ounce.