Health-care hit hardest
Equity markets in
The S&P/TSX composite index was off its lows of the day, but still negative by 35.75 points to close Tuesday at 15,137.18
The Canadian dollar inched up
Telecoms shares remained in selloff mode, a day after the Harper government announced a new spectrum auction that favours smaller industry players, and were one of the biggest drags on the market.
Financials were lower on the day, but Royal Bank of Canada gained 0.3% to
Shares of energy producers slipped, with oil prices trading lower. Suncor Energy shed 0.2% to
Shares of telecoms providers tumbled, with Telus weakening 2.1% to
In corporate news, Intertape Polymer Group said late on Monday it raised its dividend by 50%. Intertape's stock shot up 11.4%, to
Health-care shares took it on the chin, with Valeant Pharmaceuticals fading 3.5% to
All but four of the 14 Toronto subgroups were lower on the day, with health-care falling 1.6%, information technology off 1%, and telecoms sliding 0.8%.
The four gainers were led by gold, up 1.4%, while materials advanced 0.6%, and the metals and mining group up 0.4%.
All three major U.S. indexes retreated with the NASDAQ down 1.4%. This is the 30th trading day so far this year that the tech-heavy index has lost 1% or more.
The Dow Jones Industrials slumped 117.59 points to 16,906.62
The S&P 500 fell 13.94 points to 1,963.71, and the NASDAQ composite collapsed 60.67 points to 4,391.46.
With the S&P 500 index already up 7% this year, investors will be looking closely to see whether corporate profits can support stocks and to what extent markets have been relying on cheap money from the Federal Reserve to push indexes to new records.
Second-quarter earnings are expected to grow 4.9% compared to the same period last year, though that estimate is down from the 6.8% prediction at the start of the quarter, according to data from FactSet.
Tuesday's selloff was most pronounced in the tech world, where some of big so-called momentum stocks were pulling back, mostly Twitter. Shares of the microblogging service tanked over 7% Tuesday.
Linkedin, Facebook, Netflix, and Amazon were also losing big.
Aluminum producer Alcoa is scheduled to unveil its earnings after the closing bell, marking the start of the quarterly results season. Restaurant chain
Shares of American Apparel plunged after the struggling company warned it received a notice of default from a lender related to last month's ouster of founder and CEO
However, American Apparel disputed that default claim and is exploring ways to tap its revolving credit facility to repay the lender.
Also on the fashion front, Guess rallied after the retailer was upgraded by analysts at Piper Jaffray, who pointed to strength in the company's European business.
Prices for 10-year U.S. Treasuries surged, lowering yields to 2.56% from Monday's 2.62%. Treasury prices and yields move in opposite directions.
Oil prices gained
Gold prices recovered
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