Wednesday, 20 October 2021 12:02 GMT

Stocks Tumble at Open

(MENAFN- Stocks Tumble at Open
Crescent Point, Gold Stocks in Focus

Equities in Canada retreated on Tuesday, as a 1% drop in gold prices weighed on miners, while technology stocks tracked a slide in the U.S. tech-heavy NASDAQ.
The TSX Composite thundered lower 287.24 points, or 1.4%, to begin Tuesday at 20,176.18.
The Canadian dollar sank 0.31 cents to 78.87 cents U.S.
Agnico Eagle Mines said on Tuesday it would merge with Kirkland Lake Gold, creating a company with a market capitalization of about $24 billion.
Agnico shares drooped 16 cents to $63.65, while Kirkland Lake Gold fell $3.90, or 7%, to $51.80.
Aurora Cannabis on Monday missed Wall Street expectations for fourth-quarter revenue as pandemic-related restrictions weighed down consumer demand, leading Canadian provinces to cut orders. Aurora shares gained 52 cents, or 6.4%, to $8.60.
A U.S. judge on Monday dismissed a lawsuit accusing Tilray of fraudulently overstating the value of a marketing and revenue-sharing agreement with Authentic Brands Group Inc. Tilray shares capsized 39 cents, or 2.5%, to $15.00.
National Bank of Canada raised the target price on Crescent Point Energy to $12.5 from $11.00. Crescent shares gave back 27 cents, or 4.6%, to $5.61.
National then raised the target price on Pipestone Energy to $4.00 from $3.25. Pipestone shares backpedaled 22 cents, or 8.2%, to $2.46.
Finally, National cut the target price on Meg Energy to $14.00 from $14.50. Meg shares docked nine cents to $9.50.
On the economic front, Statistics Canada reported that payroll employment increased by 324,800 (+2.0%) in July, the largest monthly increase since September 2020.
The agency adds, compared with February 2020, payroll employment was down by 427,800 (-2.5%) in July 2021.
The TSX Venture Exchange slumbered 14.61 points, or 1.7%, to 865.80.
All 12 TSX sectors were lower, with information technology stumbling 3.5%, consumer discretionary stocks dumping 1.8%, and health-care off 1.5%.
U.S. stocks fell on Tuesday, with tech names dragging down the NASDAQ and the broader markets as Treasury yields traded near three-month highs.
The Dow Jones Industrials loosed 340.16 points, or 1%, to 34,529.21,
The S&P 500 sank 69.47 points, or 1.6%, to 4,373.64.
The NASDAQ Composite tumbled 347.28 points, or 2.3%, to 14,622.69.
Tech shares were dropping in morning trading as a rapid rise in rates makes their future cash flows less valuable, and in turn makes the popular stocks appear overvalued. Higher rates also hinder tech companies' ability to fund their growth and buy back stock.
Facebook and Alphabet shares lost roughly 3% in morning trading, while Amazon dropped more than 2%. Large chip stocks struggled, with Nvidia sliding more than 3%.
The drop in tech dragged down sentiment on the markets though there were pockets of strength. Energy stocks like Exxon rose in early trading as WTI crude topped $76 a barrel. Shares of Ford rose 1.4% after the company announced plans to build new production facilities in the U.S.
Also weighing on sentiment was a budget showdown in Washington. Senate Republicans blocked a House-passed bill Monday that would have funded the government into December and suspended the debt ceiling until December 2022.
Congress must approve government funding by Friday to avoid a shutdown, and Treasury Secretary Janet Yellen warned Congress in a letter on Tuesday that lawmakers need to raise the debt limit by Oct. 18 to avoid a government default.
Thursday marks the final day of trading of September and the third quarter. The Dow is down 1.4% for the month, and the S&P 500 is off by 1.8%. The NASDAQ has lost 1.9% in September.
Prices for 10-Year Treasurys sagged, raising yields to 1.54% from Monday's 1.49%. Treasury prices and yields move in opposite directions.
Oil prices dipped 16 cents to $75.29 U.S. a barrel.
Gold prices subtracted $14.80 to $1,737.20 U.S. an ounce.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.