TSX Starts out Short Week Upward

Snap Leads Laggards on Wall St.

Equities in Canada rose on Tuesday as energy and cyclical shares gained after investors returned from a long weekend, although losses in U.S. equities kept sentiment in check.

The S&P/TSX gained 51.49 points to begin a short week at 20,249.10

The Canadian dollar moved backward 0.07 cents to 78.13 cents U.S.

Markets in Canada were shuttered for Victoria Day.

The energy sector climbed with oil producers Whitecap Resources, up 30 cents, or 3%, to $10.34, and MEG Energy, up 82 cents, or 4%, to $21.35.

The financials sector gained ahead of
earnings from Bank of Nova Scotia, up 63 cents to $80.87, and Bank of Montreal, up $2.34, or 1.8%, to $133.26. Both are reporting results on Wednesday.

Canadian Pacific Railway said one of its freight trains carrying potash derailed east of Fort Macleod in southern Alberta on Sunday morning.

CP shares began Tuesday down 41 cents to $87.93.

BMO raised the target price on Filo Mining to $30.00 from $28.00. Filo shares galloped $2.66, or 11.3%, to $26.16.

ON BAYSTREET

The TSX Venture Exchange inched up 0.43 points to 702.52.

Seven of the 12 TSX subgroups were up in the first hour, with energy ahead 2.4%, consumer staples better by 1.7%, and communications advancing 0.8%.

The five laggards were weighed most by health-care, collapsing 5.4%, information technology, down 3.5% and consumer discretionary, off 1%.

ON WALLSTREET

Stocks fell Tuesday as the markets struggled to sustain a comeback rally following weeks of losses.

The Dow Jones Industrials faltered 294.43 points to commence Tuesday at 31,585.81

The S&P 500 cratered 76.56 points, or 1.9%, to 3,897.19.
T
he NASDAQ Composite was in freefall, dropping 398.09 points, or 3.5%, to 11,137.18,

Snap shares plummeted more than 36% after the company said it’s bracing to miss earnings and revenue targets in the current quarter and warned of a hiring slowdown. Shares of Meta Platforms followed Snap lower, falling 6%, while Pinterest lost 17%.

Shares of other major tech companies followed Snap lower. Alphabet and Netflix each slid about 6%. Amazon fell 3% and Apple was down more than 1%.

On Tuesday shares of apparel maker Abercrombie & Fitch dropped 27% after reporting that freight and product costs weighed on sales for the fiscal first quarter.

Best Buy shares initially popped after the company reported a mixed quarter, but were last less than 1% lower. Retailers were among the top gainers in the S&P 500 during Monday’s relief rally.

Nordstrom and Urban Outfitters will report earnings after the bell.

Treasury prices gained ground, lowering yields to 2.85% from Monday’s 2.86%. Treasury prices and yields move in opposite directions.

Oil prices gained 50 cents to $110.79 U.S. a barrel.

Gold prices gained $19.60 to $1,867.40 U.S. an ounce.