Stocks Wounded to Begin Short Week

Investors in Toronto were gripped with the same malaise Tuesday as their American cousins were, as the main index took a big hit, especially from energy and other resource stocks.

The TSX ended Tuesday down 187.59 points, to 19,505.33.

The Canadian dollar collapsed 0.18 cents to 77.68 cents U.S.

Markets were shuttered for Civic Holiday Monday.

The losing groups were weighed most by materials, with Capstone Mining collapsing 20 cents, or 6.9%, to $2.69, while First Quantum Minerals skidded $1.84, or 7.9%, to $21.56.

Energy stocks were also in the red, with Baytex falling 34 cents, or 4.9%, to $6.54, while Paramount Resources dipped $1.29, or 4.1%, to $30.52.

In real-estate, units of Interrent REIT faltered 44 cents, or 3.3%, to $12.96, while Altus Group misfired $1.37, or 2.6%, to $51.20.

Health-care stocks tried to level things out, with cannabis leader Aurora Cannabis progressing 19 cents, or 10.5%, to $2.00, while Canopy Growth added 30 cents, or 8.9%, to $3.69.

In techs, Sierra Wireless jumped $4.40, or 13.8%, to $36.30, while Shopify barreled ahead $4.198, or 9.4%, to $48.80.

In consumer discretionary stocks, Restaurant Brands International leaped $1.79, or 2.6%, to $70.43, while Sleep Country was anything but dozy, picking up 45 cents, or 1.6%, to $29.09.

The seasonally adjusted S&P Global Canada Manufacturing Purchasing Managers’ Index registered at 52.5 in July, down from 54.6 in June. The latest reading signaled 25 continuous months of growth.

ON BAYSTREET

The TSX Venture Exchange kept its upward momentum, gaining 8.72 points, or 1.4%, to 654.76.

Eight of the 12 TSX subgroups were still negative by the close Tuesday, with energy and materials each subsiding 2%, and real-estate off 1.5%.

The three gainers were health-care, vaulting 3.1%, information technology, clicking 1.7%, and consumer discretionary, eking up 0.1%.

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Utilities were unchanged by the end of the session.

ON WALLSTREET

Stocks slumped on Tuesday as investors weighed increased tensions between the U.S. and China with House Speaker Nancy Pelosi’s Taiwan visit and reacted to comments from Federal Reserve Presidents about the central bank’s path forward.

The Dow Jones Industrials swooned 402.23 points or 1.2%, to end Tuesday at 32,396.17, weighed down by Caterpillar, which shed more than 3% after reporting disappointing quarterly earnings.

The S&P 500 surrendered 27.44 points from earlier gains to 4,091.19. The benchmark had earlier climbed off of lows as Pelosi’s plane landed safely in Taiwan Tuesday morning.

The NASDAQ Composite lost 20.22 points to 12,348.76.

Stocks wavered early in the afternoon, reacting to multiple comments from regional Fed Presidents who all threw cold water on the idea that the Fed will be done raising rates, or move them lower anytime soon.

Pelosi is expected to spend the night in Taiwan, Reuters reported. Leading up to the trip, Chinese officials threatened to act if Pelosi moved forward with the visit. Pelosi is the most senior U.S. official to meet with Taiwan leaders on the island since former House Speaker Newt Gingrich visited in 1997.

Traders are also looking ahead to another raft of earnings from companies such as Starbucks, PayPal and Advanced Micro Devices on Tuesday after the bell.

On the economic data front, investors this week are awaiting the July non-farm payrolls report slated for release Friday for further clues into the state of the economy and the job market.

Treasury prices fell Tuesday, raising yields to 2.75%, from Monday’s 2.60%. Treasury prices and yields move in opposite directions.

Oil prices gathered 21 cents to $94.10 U.S. a barrel.

Gold prices jettisoned $10.40 to $1,777.30 U.S. an ounce.