Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Globe Investor

Inside the Market

Up-to-the-minute insights
on developing market news

Entry archive:

The close: Stocks falter Add to ...

North American stocks surrendered early gains on Tuesday to end the session in the red, following the U.S. Federal Reserve statement which extinguished any hope of further stimulus for now.

The Fed said the U.S. economy is showing some strength even as the global economy falters, but it warned again that international markets “continue to pose significant downside risks to the economic outlook.”

In Toronto, the S&P/TSX lost 147.95 points, or 1.3 per cent, to close at 11759.94. All sectors suffered, with materials down 4 per cent.

Ivanhoe Mines’ valuation tumbled 21 per cent following comment from Rio Tinto that it has no plans to launch a full takeover bid for the Vancouver-based company, after an arbitrator ruled in its favour in a shareholder dispute.

Shares of Sun Life Financial fell 4 per cent after S&P placed the ratings of the insurer on "watch with negative implications," reflecting what S&P says is a potential loss of earnings quality and diversification.

Shares of Canadian National Railway fell nearly 2 per cent after RBC downgraded the stock to “sector perform,” citing limited upside at the current valuation.

Shares of Calgary-based PetroBakken Energy provided a rare bright spot, rising 6 per cent after the company forecast a rise of more than 15 per cent in production and said it would expand its hedging program for next year to cash in on high oil prices.

In New York, the Dow Jones industrial average lost 66.45 points, or 0.6 per cent, to close at 11954.94. The broader S&P 500 dipped 10.74 points, or 0.9 per cent, to 1225.73. The consumer discretionary sector led the decline, with shares of Best Buy plunging 15 per cent after the world’s largest consumer electronics retailer posted disappointing results. Shares of Amazon.com fell 5 per cent after Goldman Sachs warned that estimates for the company were unrealistic.

Oil prices burst through $100 (U.S.) a barrel, the biggest rise in four weeks, partly on concerns that supplies could be disrupted by Iranian military drills in the Strait of Hormuz, which runs between Iran and Oman. It ended the session up $2.23 at $100 a barrel.

The loonie fell 0.63 cents to 96.77 cents after the Fed statement, which gave strength to the U.S. dollar. Gold prices fell $32.30 to $1635.90.

Follow us on Twitter: @GlobeInvestor


For Globe Unlimited Subscribers

Business videos »

Most popular videos »


Most Popular Stories