Stocks Slightly Lower to Begin Tuesday

Micron in Spotlight

Equity markets fell on Tuesday as fresh lockdown measures imposed by the government on pubs and restaurants dampened recovery hopes while energy stocks fell on lower oil prices.

The TSX dropped 31.78 points to 16,211.03

The Canadian dollar dipped 0.1 cents to 74.76 cents U.S.

Prosecutors in this country are set to present their argument after Huawei Chief Financial Officer Meng Wanzhou's lawyers sought to add a new charge in their effort to stop her extradition to the United States.

Quebec on Monday ordered new restrictions on bars and restaurants in coronavirus hot spots, while Ontario Premier Doug Ford warned of a "more complex" second wave, as the two provinces saw big increases in COVID-19 cases.

On the economic slate, Statistics Canada says its industrial product price index increased 0.3% in August, led by higher prices for primary non-ferrous metal products.

The agency’s raw materials price index rose 3.2%, principally due to higher prices for metal ores, concentrates and scrap.


The TSX Venture Exchange added 3.33 points to 712.16.

Eight of the 12 TSX subgroups were sinking in the first hour, most notably, energy, down 1.7%, real-estate, off 0.6%, and consumer discretionary, sliding 0.5%.

The four gainers were led by gold, ahead 0.7%, materials, better by 0.4%, and information technology, advancing 0.3%.


Stocks were little changed on Tuesday as the market took a breather following a sharp rally in the previous session while investors assessed whether this rebound can continue.

The Dow Jones Industrial Average fell 34.63 points to open Tuesday at 27,549.43.

The S&P 500 dipped 0.45 points to 3,351.15.

The NASDAQ inched up 7.86 points to 11,125.39.

Political news is poised to potentially be a driver of market news this week, with the first debate between President Donald Trump and Democratic nominee Joe Biden set for Tuesday night.

Some Wall Street analysts believe the first debate of this cycle could be more consequential for the markets than most debates, with a clear victory by one candidate possibly creating significant market moves.

Before the debate kicks off, investors will get a close look at the state of the semiconductor industry when Micron reports its fiscal fourth-quarter results after the bell on Tuesday. The stock gained 1.2% on Monday despite receiving a “negative catalyst watch” from Citi.

The climb for stocks on Monday came after mixed news about the coronavirus response over the weekend. On the bullish side for the market, Florida lifted capacity restrictions on restaurants over the weekend and Pelosi said she believed another relief bill was still on the table.

However, cases in the U.S. continued to rise once again, with Dr. Anthony Fauci saying on Monday that the U.S. is “not in a good place” as colder weather approaches.

House Speaker Nancy Pelosi said on Monday night that the Democrats were unveiling a new $2.2-trillion stimulus package, smaller than the more than $3 trillion proposed earlier in the crisis but still well above what Republican leaders have offered.

The new bill would include enhanced unemployment benefits and aid to airlines and state and local governments.

Prices for the 10-Year Treasury were slightly higher, lowering yields to 0.65% from Monday’s 0.66%. Treasury prices and yields move in opposite directions.

Oil prices dropped 84 cents to $39.76 U.S. a barrel.

Gold prices acquired $9.60 to $1,891.90 U.S. an ounce.