Stocks Continue Negative by Noon
Magna, Canada Goose in Forefront
Stocks in Toronto fell on Tuesday, as energy and consumer discretionary stocks dragged the main index lower ahead of the Bank of Canada's interest rate decision on Wednesday, while data showed U.S. business activity contracted.
The TSX came off its lows of the morning, but still had some catching up to do, remaining in the red 24.96 points to move into Tuesday's noon hour at 20,606.62.
The Canadian dollar inched higher 0.06 cents at 74.84 cents U.S.
Magna International slumped $6.43, or 7.3%, to $81.14, after the automotive supplier cut its full-year adjusted EBIT margin. Elsewhere among consumer discretionary stocks, Canada Goose Holdings dropped 66 cents, or 2.3%, to $28.51.
Tech stocks also proved negative, with Softchoice sliding $1.01, or 5.3%, to $17.95, while Converge Technology Solutions handed back 19 cents, or 3.4%, to $5.44.
Consumer staples led things upward, as Primo Water hiked 48 cents, or 2.4%, to $20.35, while Metro gained $1.69, or 2.3%, to $76.07.
Communications jumped, Rogers ahead 94 cents, or 1.5%, to $65.53, while Shaw grabbed 48 cents, or 1.3%, to $38.91.
Meanwhile, another interest rate hike by the Bank of Canada is looming large, with traders leaning towards a 25-basis-point hike on Wednesday.
The TSX Venture Exchange leaned lower 0.62 points to 621.35.
Seven of the 12 subgroups reversed their field and moved positive midday, with consumer staples up 1.3%, communications improving 0.9%, and health-care haler by 0.5%.
The five laggards were weighed most by consumer discretionary, down 1.1%, information technology, lower by 0.8%, and energy, off 0.7%.
Stocks fell Tuesday as investors struggled to build on a strong start to the week during a busy stretch of corporate earnings.
The Dow Jones Industrials sank 29.75 points to 33,599.81.
The S&P 500 dipped 12.66 points to 4,007.81.
The NASDAQ Composite fell 33.16 points to 11,331.26.
Earnings season continued Tuesday with results from 3M and Verizon. Both stocks fell on disappointing guidance. Software giant Microsoft reports after the bell.
Shares of many companies listed on the New York Stock Exchange were halted briefly after the market open due to a technical issue. Affected stocks included Nike, McDonald's and Morgan Stanley. The NYSE said the problem has been resolved.
Prices for the 10-year Treasury gained some ground, lowering yields to 3.48% from Monday's 3.53%. Treasury prices and yields move in opposite directions.
Oil prices deleted $1.22 to $80.40 U.S. a barrel.
Gold prices gained $3.20 to $1,931.80 U.S. an ounce.
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