Stocks Bleed Tuesday
The TSX was pummeled 237.2 points, or 1.5%, to conclude trading Tuesday at 20,242.07.
The Canadian dollar stepped back 0.05 cents to 74.19 cents U.S.
Among company news, Iamgold let go of 37 cents, or 8.6%, to 3.96, while Equinox Gold fell 37 cents, or 5.1%, to $6.89.
In energy issues, Pason Systems docked 50 cents, or 4.3%, to $11.13, while Vermilion Energy slid 60 cents, or 3.8%, to $15.34.
In real-estate, Canadian Apartment REIT units dwindled $2.29 in price, or 4.5%, to $48.21, while units of Killam Apartment REIT ditched 67 cents, or 3.6%, to $17.51.
In the economic docket, Statistics Canada said manufacturing sales rose 0.7% in March, mainly on higher sales in the transportation equipment and primary metal industries, while April’s consumer price index rose 4.4% on a year-over-year basis in April, following a 4.3% increase in March. On a seasonally adjusted monthly basis, the CPI rose 0.6% in April.
ON BAYSTREET
The TSX Venture Exchange shrank 8.79 points, or 1.4%, to 607.02.
All 12 TSX subgroups plunged Tuesday morning, weighed most by gold, peppered 2.7%, materials, sliding 1.9%, and real-estate, off 1.6%.
ON WALLSTREET
Stocks dipped Tuesday as investors digested a lackluster forecast from Home Depot. Wall Street also turned its attention to a meeting between congressional leaders and President Joe Biden on the U.S. debt ceiling.
The Dow Jones Industrials went south 336.26 points or 1%, to 33,012.34.
The S&P 500 backed off 26.38 points to 4,109.90.
The NASDAQ Composite skidded 22.16 points to 12,343.05.
Dow member Home Depot pulled back by 2.15% after the home improvement retailer reported disappointing quarterly revenue and cut its full-year guidance.
Meanwhile, April retail sales rose 0.4% last month, lower than the 0.8% increase anticipated by economists polled by Dow Jones.
Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury Department has said the U.S. could default on its debt obligations. Treasury Secretary Janet Yellen said last week that a lack of a deal could spur an “economic catastrophe.”
Biden maintained a more optimistic view of the ongoing negotiations over the weekend, while House Speaker Kevin McCarthy said significant obstacles remain.
Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal to raise the debt ceiling be tied to spending cuts.
On Tuesday, the White House said Biden will cut his upcoming international trip short as he deals with debt ceiling negotiations.
Prices for the 10-year Treasury lost ground, raising yields to 3.53% from Friday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 52 cents to $70.59 U.S. a barrel.
Gold prices forfeited $28.50 to $1,994.20 U.S. an ounce.
Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.
