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TSX slips as growth worries weigh

Baystreet.ca
Canada's main stock index fell broadly on Tuesday, taking cues from world markets, after the International ...

Canada's main stock index fell broadly on Tuesday, taking cues from world markets, after the International Monetary Fund cut its forecasts for global economic growth, blaming tariff war.

The S&P/TSX Composite Index remained negative 67.7 points to head into noon hour ET at 15,878.47

The Canadian dollar lost but 0.01 cents to 77.17 cents U.S.

Canadian markets are closed Monday for Thanksgiving Day.

The IMF cut its global economic growth forecasts for 2018 and 2019, saying the U.S-China trade war was taking a toll and emerging markets were struggling with tighter liquidity and capital outflows.

The biggest percentage gainers on the TSX were cannabis producer Canopy Growth, which jumped $2.26, or 3.7%, to $63.75, followed by New Gold, which rose three cents, or 2.5%, to $1.04

Ritchie Bros Auctioneers fell $2.24, or 4.7%, the most on the TSX, to $45.05, while the second-biggest decliner was packaging products and paper company Cascades, which slipped $1.17, or 9.5%, to $11.18.

On the economic slate, Canada Mortgage and Housing Corporation reported housing starts fell to 188,683 in September from a revised 189.843 in August.

ON BAYSTREET

The TSX Venture Exchange lost 2.9 points to 702.79

All but three of the 12 subgroups were down by midday, what with information technology sliding 1.6%, gold materials each 1% to the bad.

The three gainers were health-care, sprinting 1.9%, consumer staples ahead 0.8%, and real-estate better by 0.1%.

ON WALLSTREET

Stocks rose on Tuesday, erasing earlier losses, as U.S. interest rates retreated from fresh multi-year highs.

The Dow Jones Industrial Average regained 33.16 points to pause for lunch at 26,519.94

The S&P 500 gained 7.32 to 2,892, led by gains in consumer discretionary and tech.

The NASDAQ gained 49.03 points to 7,784.98, as Facebook and Amazon both traded higher.

Shares of Facebook and Amazon both gained more than 1%, while Netflix gained 2.7%. Apple's stock also gained 1.2%.

The recent rise in interest rates comes as investors brace for the upcoming earnings season, which starts later this week. J.P. Morgan Chase, Wells Fargo, Citigroup and Walgreens Boots Alliance are among the companies set to report.

Overall, analysts expect corporate earnings to have grown by about 19% in the third quarter. Earnings grew by 25% in the first two quarters of the year.

However, PPG Industries, an industrial coatings manufacturer, fell more than 7% after updating its third-quarter guidance. The company now expects adjusted earnings per share to range between $1.41 and $1.45, well below an estimate of $1.59.

The so-called core PCE price index, which is the Federal Reserve's preferred measure of inflation, remained at 2% in August. A figure of 2% is the Fed's inflation target.

The benchmark 10-year Treasury note yield rose to its highest level since 2011, before slipping. The longer-term 30-year bond yield also reached its highest mark since 2014.

Prices for the benchmark for the 10-year U.S. Treasury gained a bit of ground, lowering yields to 3.22% from Friday’s 3.23%. Treasury prices and yields move in opposite directions.

Oil prices gathered 62 cents at $74.91 U.S. a barrel.

Gold prices gained $4.70 to $1,193.30 U.S. an ounce.