(MENAFN - Baystreet.ca) Equities in Canada's largest centre fell at the open on Tuesday, following two straight sessions of gains, as energy shares mirrored a drop in oil prices on persisting concerns over demand.
The S&P/TSX Composite faltered 70.41 points to begin Tuesday at 16,233.64
The Canadian dollar fell 0.07 cents to 74.97 cents U.S.
CIBC raised the rating on AGF Management to outperform from neutral. AGF shares leaped 36 cents, or 6.7%, to $5.77.
Consumer staples lurched lower, as Metro tumbled 92 cents, or 1.7%, to $54.08.
Gold showed promise, as Barrick Gold improved 40 cents, or 1.7%, to $24.52
On the economic beat, Statistics Canada said manufacturing sales fell 1.2% to $58.0 billion in June, following a 1.6% increase in May.
The agency says the petroleum and coal product and food industries weighed down sales in June, while the primary metal industry posted the largest increase.
The TSX Venture Exchange recovered 3.81 points to 573.66
Seven of 12 Toronto subgroups lost ground in Tuesday's first hour, as consumer staples and communications each hesitated 1%, while energy dipped 0.8%.
The five gainers were led by gold, ahead 1.6%, health-care, haler 1%, and materials, stronger by 0.7%.
Stocks fell on Tuesday as investors digested a sharp rebound from a strong selloff last week.
The Dow Jones Industrials erased 63.55 points to 26,072.24. The 30-stock index was also on pace to snap a three-session winning streak.
The S&P 500 lost 10.64 points to 2,912.88
The NASDAQ handed back 18.43 points to 7,984.38
Tech-related stocks led the losses. Micron Technology lost 1.1%, and Advanced Micro Devices dipped 2.7%. Netflix shares pulled back 3%.
Bank shares such as Citigroup, Bank of America and J.P. Morgan Chase all dropped around 1% as Treasury yields pulled back.
Home Depot kept losses in check. The home improvement retailer reported better-than-expected earnings on Tuesday, sending its stock up 4.1%. However, Home Depot warned tariffs could hit consumer spending and cut its full-year revenue outlook.
Equities rose sharply on Monday as a rebound in bond yields continued, easing ongoing recession fears. The White House has also stepped in the ongoing debate over whether the U.S. economy will soon enter into recession mode, highlighting the strength in the U.S. economy.
Various media sources both reported the Trump administration was discussing a cut to payroll taxes as a way to mitigate slower economic growth. A White House official pushed back on the reports, saying cutting payroll taxes 'is not something under consideration at this time.'
Traders also looked ahead to the release of the Federal Reserve's minutes from its July meeting. The central bank cut rates by 25 basis points last month, citing 'global developments' and 'muted inflation.' The Fed minutes are scheduled for release Wednesday at 2 p.m. ET.
Prices for the benchmark 10-year U.S. Treasury regained lost ground, lowering yields to 1.56% from Monday's 1.61%. Treasury prices and yields move in opposite directions
Oil prices dipped 69 cents to $55.52 U.S. a barrel.
Gold prices brightened $2.90 to $1,514.50 U.S. an ounce.