Canada’s main stock index faltered at open on Tuesday, dragged down by financial and technology stocks and as global growth fears and concerns around aggressive U.S. Fed tightening weighed on sentiment
The TSX Composite Index stumbled out of the gate 85.17 points to open Tuesday at 20,926.72.
The Canadian dollar lost 0.38 cents to 78.14 cents U.S.
Bombardier said on Monday it would defend itself against a request for arbitration by Alstom SA related to the 2021 sale of the Canadian company’s rail division. Bombardier’s stock dwindled five cents, or 3.7%, to $1.31.
Air Canada on Tuesday reported a smaller quarterly loss, as more passengers flew due to an easing of COVID-19 travel restrictions. Shares in the Maple Leaf airline lost altitude 76 cents, or 3.1%, to $23.46.
CIBC raised the target price on Fairfax Financial Holdings to $950.00 from $825.00. Fairfax shares downed $4.70 to $676.32.
National Bank of Canada raised the target price on Kinaxis to $250.00 from $225.00. Kinaxis fell $5.54, or 3.8%, to $140.00.
Eight Capital initiated coverage on Southern Energy with a buy rating and $3.00 target price. Southern shares gained two cents, or 2.9%, to 72 cents.
ON BAYSTREET
The TSX Venture Exchange crept forward 0.04 points to 824.78.
Eight of the 12 TSX subgroups were lower, as information technology swooned 1.9%, and consumer discretionary shares falling 1.3%, and health-care lower by 0.5%.
The four gainers were led by energy, ahead 0.7%, gold, shinier 0.3%, and utilities, eking up 0.1%.
ON WALLSTREET
U.S. stocks fell Tuesday as technology shares struggled, continuing the April selloff.
The Dow Jones Industrials dropped 234.66 points to 33,814.80.
The S&P 500 floundered 48.63 points, or 1.1%, to 4,247.49.
The NASDAQ Composite tumbled 296.93 points, or 2.3%, to 12,707.92.
The tech-heavy NASDAQ is lurching toward bear market territory, sitting about 20.4% from its intraday high. For April, the S&P 500 is off by more than 5%, the NASDAQ is down more than 9% and the Dow is down roughly 2%.
Tech shares that led Monday’s comeback struggled on Tuesday, with mega-cap names down ahead of quarterly earnings reports this week.
Microsoft and Google parent Alphabet both shed about 1% ahead of quarterly reports after the bell Tuesday. Facebook parent Meta, Amazon and Apple were also more than 1% lower Tuesday, with earnings results slated for later this week.
Elsewhere on the corporate earnings front, Dow component 3M fell about 2% despite better-than-expected earnings as the company noted macroeconomic and geopolitical challenges ahead. The stock was the biggest decline on the Dow.
UPS shares also fell 3% despite the shipper’s quarterly earnings and revenue topping expectations.
Other industrial names like General Electric and Boeing were lower in early morning trading Tuesday. GE fell more than 7%, while Boeing eased 1%.
Treasury prices picked up new ground, lowering yields up to 2.76% from Monday’s 2.82%. Treasury prices and yields move in opposite directions.
Oil prices added $1.66 at $100.20 U.S. a barrel.
Gold prices jumped $10.60 to $1,906.60 U.S. an ounce.