Sharp Drop for Markets on Second Last Day of ’19

It was a rough day on the markets Monday, as investors likely took advantage of the chance to take some profits from issues assuming record highs.

The TSX Composite Index stumbled 69.65 points to finish Monday at 17,089.56

The Canadian dollar gained 0.09 cents to 76.57 cents U.S.

Markets will be open Tuesday as a normal day on the markets, but will close on Wednesday for New Year’s Day.

Health-care stocks were again bruised and battered, particularly HEXO, falling 10 cents, or 4.8%, to $2.00, while Cronos Group surrendered 34 cents, or 3.8%, to $8.63

Information technology stocks also sank, as Shopify skidded $15.44, or 2.9%, to $519.32, while Photon Control handed back three cents, or 2.1%, to $1.39.

Among consumer staples, Alimentation Couche-Tard tottered 63 cents, or 1.5%, to $41.49, while Empire Company went downward 33 cents, or 1.1%, to $30.67.

Gold tried to put a positive spin on the trading day, as Novagold added 45 cents, or 4%, to $11.82, while Torex Gold took on 96 cents, or 4.9%, to $20.55.

In other resource stocks, Ivanhoe Mines gained 20 cents, or 4.9%, to $4.26, while First Majestic Silver leaped 59 cents, or 3.8%, to $16.17.

Energy stocks also enjoyed success, as Crescent Point Energy moved upward 17 cents, or 3%, to $5.87, while Gran Tierra Energy gained four cents, or 2.6%, to $1.61.

ON BAYSTREET

The TSX Venture Exchange added 5.35 points to 568.93

All but three of the 12 TSX subgroups listed lower by the closing bell Monday, as health-care dropped 1.7%, while information technology subsided 1.1%, and consumer staples fell 0.8%.

The three gainers were gold, up 1.5%, while materials improved 0.9% and energy picked up 0.3%.

ON WALLSTREET

Stocks fell from their all-time highs on Monday as investors took off some risk on the second-to-last trading day of a record-breaking year for equities.

Read: The Hottest Tech Niche You Haven’t Heard About

The Dow Jones Industrials tumbled 181.14 points from Friday’s record close to finish Monday at 28,461.12

The S&P 500 fell 18.73 points to 3,221.29. The two indices suffered their worst day in four weeks.

The NASDAQ plunged 60.62 points to 8,945.99, after topping 9,000 for the first time ever last week.

Some of the biggest winners of the year, including Microsoft, Visa, NIKE, and Procter & Gamble, were all in the red on Monday as investors took profits. Microsoft rallied 55% and Visa gained 42%, to be among the top five gainers in the Dow this year.

U.S. equities have enjoyed a strong rally in December, with the main indexes hitting record highs last week amid year-end optimism. The S&P 500 has notched five straight weeks of gains, rising 29% in 2019.

The benchmark is within reach of a historic year, sitting about a percentage point away from having its best year since 1997.

The advance report on the U.S. trade in goods on Friday showed the trade deficit shrank to its narrowest since 2016 in November.

Market sentiment has been boosted by the easing tensions over U.S.-China trade relations. The world’s two largest economies agreed earlier this month to a so-called “phase-one” trade deal.

The South China Morning Post reported Monday that Chinese Vice Premier Liu He, the nation’s top trade negotiator, will visit Washington this week to sign the agreement. The newspaper, citing a source briefed on the matter, said the Chinese delegation will stay in the U.S. for a few days until the middle of next week.

Prices for the 10-Year U.S. Treasury nudged lower, raising yields to 1.89% from Friday’s 1.88%. Treasury prices and yields move in opposite directions.

Oil prices gave back a dime to $61.62 U.S. a barrel.

Gold prices regained 20 cents at $1,517.90 U.S. an ounce.