TSX Clobbered - InvestingChannel

TSX Clobbered

Canada’s main stock index lost ground rapidly Tuesday, as suspense over remarks by the Federal Reserve across the border made its way into markets here. Health-care and mineral stocks were the one hardest hit.

The S&P/TSX Composite Index lost 182.42 points to close Tuesday at 21,887.34.

The Canadian dollar regrouped 0.04 cents to 72.70 cents U.S.

Shopify rose 1% after J.P. Morgan started coverage with an “overweight” rating. Shopify shares gathered $1.02, or 1.2%, to close in Toronto at $87.84.

Enghouse Systems climbed 3.4% after the software firm posted second-quarter results. Shares in Enghouse leaped $1.36, or 4.7%, to $30.54.

Elsewhere, health-care stocks dropped, as Bausch Health Companies let go of 27 cents, or 3.1%, to $8.42, while Tilray sifted off seven cents, or 2.9%, to $2.39.

In materials, Stelco Holdings surrendered $1.54, or 3.9%, to $37.92, while Nutrien handed back $2.68, or 3.5%, to $73.17.

In gold plays, Osisko Gold Royalties docked 56 cents, or 2.4%, to $22.94, while New Gold dipped 16 cents, or 3.1%, to $4.95.

On the economic front, Statistics Canada reported building permits significantly increased 20.5% to $12.8 billion in April.

ON BAYSTREET

The TSX Venture Exchange wilted 9.78 points, or 1.7%, to 577.16.

All 12 subgroups were negative on the day, weighed most by health-care and materials, each sliding 1.8%, and gold declining 1.6%.

ON WALLSTREET

The S&P 500 and the NASDAQ Composite rose to fresh closing records on Tuesday, led upward by Apple as the iPhone maker surged to an all-time high.

The Dow Jones Industrials lost 120.66 points by day’s end to 38,747.42.

The S&P 500 index regained 14.53 points to 5,375.32.

The NASDAQ surged 151.02 points to 17,343.55.

On Tuesday, investors appeared to be taking profits in artificial intelligence star Nvidia and rotating into emerging AI play Apple, which just unveiled new features that could spark a wave of iPhone upgrades, analysts said. The iPhone maker hit a record during the session — its first since last December — jumping nearly 7.3%. Nvidia lost about 0.7%.

Shares of Paramount fell sharply in late afternoon trading after the proposed acquisition by Skydance appeared to fall apart.

National Amusements, the company run by Shari Redstone that is effectively the controlling shareholder of Paramount, failed to reach a deal with Skydance for the entertainment company and has stopped discussions on the matter.

The Fed meeting will conclude on Wednesday with an interest rate policy decision and a subsequent press conference featuring Federal Reserve Chair Jerome Powell.

Before the Fed decision on Wednesday, investors will closely follow the consumer price index reading for May.

Shares of Affirm rose more than 5% following the announcement that its buy now, pay later loans will be incorporated into Apple Pay on iPhones and iPads for U.S. users. Affirm said in a filing that the buy now, pay later option is expected to hit those devices later this year.

Prices for the 10-year Treasury strengthened, lowering yields to 4.40% from Monday’s 4.47%. Treasury prices and yields move in opposite directions.

Oil prices regained 19 cents to $77.93 U.S. a barrel.

Gold prices progressed $5.30 to $2,332.30

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