Stocks in Toronto fell short by the closing bell on Tuesday, though energy shares hit their highest in more than five years on soaring oil prices, which also fueled inflationary concerns that capped further gains. Industrials proved negative by the finish
The S&P/TSX Composite Index was down 72.37 points to end Tuesday at 21,332.03.
The Canadian dollar faltered 0.51 cents to 77.61 cents U.S.
Intertape Polymer Group soared $16.97, or 76.2%, to $39.25, and was the largest percentage gainer on the index, after the packaging products maker said it would be taken private by investment firm Clearlake Capital Group in an all-cash deal valued at $2.6 billion.
Bombardier gained 17 cents, or 14.6%, to $1.33.
Agnico Eagle Mines shot higher $3.93, or 5.3%, to $78.63.
Energy stocks prospered, with Canadian Natural Resources gaining 60 cents to $76.91. Suncor faded, however, 60 cents, or 1.4%, to $41.50.
In the financial field, TD Bank dipped 48 cents to $96.71, while CIBC picked up 37 cents to $156.68.
Industrial stocks were roughed up a bit, with Canadian National Railway in reverse $3.1, or 2%, to $158.64.
On the economic front, Statistics Canada reported Canada’s merchandise imports fell 7.4%, with decreases observed in nearly all product sections.
Meanwhile, exports were down 0.2%. As a result, Canada’s merchandise trade balance went from a $1.6 billion deficit in December 2021 to a $2.6-billion surplus in January 2022.
Alberta will drop its provincial fuel tax to give consumers some relief from soaring energy prices, Premier Jason Kenney said on Monday, as he also urged the United States to revive the canceled Keystone XL oil pipeline.
ON BAYSTREET
The TSX Venture Exchange jumped, however, 8.64 points, or 1%, to 848.85.
Seven of the 12 TSX subgroups moved upward by the close, with health-care stronger 2.1%, gold gaining 1.2%, and materials advancing 0.7%.
The five laggards were weighed most by information technology, lower by 1.4%, while communications and industrials each lost 1.1%.
ON WALLSTREET
Stocks declined on Tuesday following the S&P 500’s worst day since October 2020, as investors continue to assess geopolitical tensions between Russia and Ukraine and high commodity prices.
The Dow Jones Industrial dumped 184.74 points to 32,632.64, falling deeper into correction territory.
Tuesday’s losses put the Dow 2.9% in the red for the week.
The S&P 500 settled 30.39 points to 4,170.70.
The NASDAQ Composite shed 35.41 points to 12,795.55.
Investors continue to grappled with surging commodity prices and slowing economic growth stemming from Russia’s invasion of Ukraine. Rising prices for oil, gasoline, natural gas, and precious metals like nickel and palladium are fueling concerns about a slowdown in global growth amid surging inflation.
The energy sector was a bright spot on Tuesday amid surging oil prices. Shares of Chevron rose 5.2%. Plus, solar and other clean energy stocks moved higher as the continued rise in oil prices shifted focus toward alternative energy sources. Enphase Energy leaped 10.8% and SunPower added 18.7%.
Shell apologized for buying cheap Russian oil and said it was divesting itself of all hydrocarbon holdings in the country. Russia itself warned that crude prices could hit $300 a barrel should Western countries enact a ban on exports. Shell shares popped 3% on Tuesday.
Tuesday’s losses put the Dow 2.9% in the red for the week so far.
Airlines and cruise lines also advanced. Delta Air Lines rose 3.7% and American Airlines popped 5.2%. Southwest added 5.3%, and United Airlines climbed 3.3%. Norwegian Cruise Line also rose 3.8%. Futures for palladium, a key metal in the manufacture of electronics, jumped another 5% to $3.04 an ounce, while platinum futures rose nearly 3% to $1,149.70 U.S. an ounce.
Prices for the 10-year Treasury plummeted, raising yields to 1.85% from Monday’s 1.78%. Treasury prices and yields move in opposite directions.
Oil prices popped $5.44 to $124.84 U.S. a barrel. Gold prices brightened $61.90 to $2,057.80 U.S. an ounce.