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:

(ANDREW KELLY/REUTERS)
(ANDREW KELLY/REUTERS)

The close: Stocks rebound and gold stabilizes Add to ...

Stocks and gold rose on Tuesday, in a modest rebound following the dramatic selloff on Monday.

The S&P 500 closed at 1574.57, up 22.21 points or 1.4 per cent, after falling more than 36 points on Monday. The blue-chip Dow Jones industrial average closed at 14,756.78, up 157.58 points or 1.1 per cent. In Canada, the S&P/TSX composite index closed at 12,123.59, up 118.71 points or 1 per cent.

More Related to this Story

The moves follow a mix of economic news. U.S. housing starts rose 7 per cent in March, to more than 1 million units at an annual rate – the first time that starts have crossed the 1 million threshold since 2008. However, building permits fell 3.9 per cent.

The U.S. Labor Department reported that inflation declined 0.2 per in March, marking the first decline in four months and raising the spectre of deflation.

The International Monetary Fund cut its forecast for global growth. The IMF now sees the global economy expanding by just 3.3 per cent in 2013, down from a January forecast of 3.5 per cent growth. In the euro zone, the IMF sees the economy contracting 0.3 per cent this year.

Yet stocks were likely reacting to the sharp drop on Monday, which pushed Canadian and U.S. stocks to their biggest selloff of the year amid nothing more serious than a disappointing reading on China’s economic growth in the first quarter.

Gold also appeared to be responding to the lurch, after falling $140 (U.S.) an ounce on Monday for its worst decline since 1980. On Tuesday, it rose to $1,373.80 (U.S.) an ounce, up $22.70.

Canadian gold produce rs, which were hammered on Monday amid concerns that gold would soon be worth less than what it costs to produce, missed the rebound. Barrick Gold Corp. fell another 5.2 per cent while Goldcorp Inc. fell 0.2 per cent.

In the U.S., earnings news highlighted some of the action. Goldman Sachs Group Inc. fell 1.6 per cent, even as it reported earnings of $4.29 a share, topping estimates. However, Goldman’s chief executive warned of “macro-economic instability.”

Johnson & Johnson rose 2.1 per cent after reporting operating earnings of $1.44 a share, up 5 per cent over last year and ahead of expectations.

Coca Cola Co. jumped 5.7 per cent after reporting earnings of 46 cents a share, beating estimates of 44 cents.

Follow on Twitter: @dberman_ROB

For Globe Unlimited Subscribers

Business videos »

Most popular videos »

Highlights

Most Popular Stories