Toronto market feels pressure

Equities fell Tuesday in Toronto, pressured by tech and gold stocks, as investors discounted positive data on Canadian housing starts for June.

The S&P/TSX Composite Index tumbled 122.45 points, or 1.1%, to end Tuesday's session at 11,512.22

The Canadian dollar let go of 0.31 cents at 97.79 cents U.S.

Helping drag down tech stocks, Sandvine Corp. shed seven cents, or 5.1%, to $1.31 as Open Text Corp. fell 40 cents, or 0.8% to $48.66.

And after kicking off its annual shareholders meeting Tuesday, shares of BlackBerry maker Research In Motion Ltd. lost 35 cents, or 4.5%, to $7.45.

Gold miners were also in the red, with Osisko Mining Corp. dropping 23 cents, or 2.9%, to $7.70, and Kinross Gold Corp. sliding 38 cents, or 4.5%, to $8.07.

In corporate news, Bombardier Inc. confirmed a $764-million order from Latvian flag carrier Air Baltic Corp. for as many as 20 CSeries jets. The announcement boosted Class B shares of the Montreal-based company by a penny to $4.04.

Economically speaking, housing starts mushroomed in June, according to figures released this morning by Canada Mortgage and Housing Corporation.

The federal agency estimates 20,327 actual starts in June across the country, up from 18,494 in June 2011, with much of the jump coming from multiple starts – namely, condos and apartments.

ON BAYSTREET

The TSX Venture Exchange stumbled backward 12.62 points to 1,199.36. The Nasdaq Canada index dipped 8.73 points to 341.69.

All but three of the 14 Toronto subgroups were negative on the day. Materials took the biggest hit, off 2.7%, while gold fell 2.6% and global base metals dove 2.5%.

The three gainers were utilities, up 0.7%, while consumer staples and telecoms inched ahead 0.4% each.

ON WALLSTREET

U.S. stocks faltered Tuesday as worries about corporate earnings falling short of expectations unnerved investors, with the Dow sliding more than 100 points in afternoon trading.

The Dow Jones Industrials lost 83.17 points to 12,653.10

The S&P 500 docked 10.30 points to 1,342.16. The Nasdaq Composite Index fell 29.44 points to 2,902.33.

Energy, utilities and tech stocks added pressure to already-down markets after Applied Materials and Advanced Micro Devices both warned their revenue would fall short of forecasts.

Disappointing expectations from Cummins also dragged on markets, as the engine maker's stock fell 9% after it slashed its sales forecast for the year.

Alcoa was the first Dow component to report this week. The aluminum producer reported results after the close Monday that were roughly in line with analysts' expectations, but the stock still slid as investors had hoped for more.

Results are due later in the week from big banks JPMorgan Chase and Wells Fargo

Shares of Barclays were higher Tuesday, after the British bank reached a deal with outgoing CEO Bob Diamond, who quit as the bank faces criticism for its role in the Libor scandal.

Although Diamond continues to receive salary and some benefits for a year or so, he declined his deferred bonus worth up to £20 million ($31 million U.S).

Shares of Advanced Micro Devices plummeted after the company warned late Monday that it expects second-quarter revenue will drop 11% from the previous quarter because of weaker sales in China and Europe.

Applied Materials cut its outlook early Tuesday, revising third-quarter and full-year earnings and sales forecasts, citing a slowdown in demand for semiconductor manufacturing equipment.

Troubled BlackBerry-maker Research In Motion held its annual shareholder meeting Tuesday. Late last month, the company announced 5,000 layoffs, a giant quarterly loss and another delay to its next BlackBerry operating system. Shares were down Tuesday.

Intel has agreed to acquire a 15% stake in Dutch semiconductor equipment maker ASML Holdings for up to $4.1 billion U.S. Intel said the companies will work together to develop technologies that will cut costs and improve productivity.

Late Monday, euro-zone finance ministers agreed that Spain would be offered an initial €30 billion by the end of the month to help bail out its troubled banks. The move is aimed at helping the euro-zone's fourth-largest economy from needing a full bailout itself.

Yields for the 10-year Spanish bond slid to 6.83% following the euro-zone announcement. Yields have been recently bouncing above the 7% mark, which heightens bailout worries.

As ministers met in Brussels, the highest court in Germany -- the nation leading the push for austerity -- began hearings to examine the impact of the new bailout fund on Germany's ability to manage how taxpayer funds are doled out.

More signs of a global economic deceleration came from China, which reported worsening year-over-year import growth early Tuesday. June came in at 6.3%, half of May's 12.7%, pointing to weak demand.

Economically speaking, last year, 18.6% of youth across 34 countries were neither employed nor in school or training programs, according to the Organization for Economic Cooperation and Development's Employment Outlook 2012 report released on Tuesday. In the United States, that percentage was 14.8%.

A lack of jobs for workers ages 15 to 24 could create a "scarring effect" on their long-term career paths and future earnings prospects, the OECD said.

The OECD also predicts the unemployment rate across the United States, Europe, Japan and Mexico will stay above 7.7% by the end of 2013 -- barely better than its current 7.9%.

The price on the benchmark 10-year U.S. Treasury gained back lost ground, pushing the yield down to 1.50% from 1.51% late Monday. Treasury prices and yields move in opposite directions.

Oil for August delivery slid 52 cents to $83.93 U.S. a barrel.

Gold futures for August delivery lost $9.30 to $1,579.80 U.S. an ounce.