TSX Lower with Energy Shares

Equities in Toronto edged lower on Tuesday, weighed down by the energy sector, while investors were also wary of big bets amid broader U.S. debt deal uncertainty.

The TSX fell 84.13 points to begin Tuesday at 19,883.82.

In company news, Pembina Pipeline signed an agreement with Japan's Marubeni Corp to co-develop a low-carbon ammonia supply chain from Western Canada to Asia. Pembina shares fell 70 cents, or 1.7%, to $41.58.

RBC turned bullish on lender Canadian Western Bank and Scotiabank resumed coverage on Fortuna Silver Miners with a "sector perform rating". Canadian Western shares gathered 73 cents, or 3%, to $24.99, while those for Fortuna decreased a nickel, or 1%, to $4.39.

Meanwhile, Alberta United Conservative Party leader Danielle Smith won a majority government in the provincial election in oil-producing province; Smith is opposed to plan by the New Democratic Party to cap oil and gas emissions, arguing it will lead to a production cut.

ON BAYSTREET

The TSX Venture Exchange dipped 4.1 points to 602.75.

The 12 TSX subgroups were evenly divided between gainers and losers. Energy blundered 2.1%, while materials fell 0.8%, and health-care shrank 0.6%.

The half-dozen gainers were led by industrials, improving 0.3%, while utilities and consumer discretionary stocks each acquired 0.2%.

ON WALLSTREET

The S&P 500 rose Tuesday after the Biden administration and Republican lawmakers reached a tentative deal on raising the U.S. debt ceiling.

The Dow Jones Industrials faded 91.77 points to begin a short week at 33,001.57.

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The S&P 500 gained 7.57 points to 4,213.02.

The NASDAQ moved upward 71.1 points to 13,046.79.

Markets were shuttered Monday for the Memorial Day holiday.

President Joe Biden and House Majority Leader Kevin McCarthy reached an agreement to raise the debt ceiling and avoid a default over the weekend, with Congress set to vote on the legislation as early as Wednesday. Lawmakers have not signaled that they intended to return to Capitol Hill early to work on the deal. Both Republican and Democratic support is needed for the bill agreement to pass.

The agreement comes just days before the so-called “X date” on June 5, which is the earliest date the Treasury Department has signaled the U.S. could default on debt obligations. The initial compromise was first announced on Saturday evening.

The S&P 500 and NASDAQ were also helped by a more than 4% gain by semiconductor maker Nvidia. The artificial intelligence-related stock reached a $1 trillion market cap — an elite marker surpassed by just a handful of stocks — on Tuesday, as shares continued to rally following its strong earnings report last week.

Prices for the 10-year Treasury hiked, lowering yields to 3.73% from Friday’s 3.81%. Treasury prices and yields move in opposite directions.

Oil prices sank $2.25 to $70.42 U.S. a barrel.

Gold prices added $10.90 to $1,974 U.S. an ounce.