Toronto stocks fell at open on Tuesday, led by declines in materials stocks as metal prices slipped after weak China data, while investors assessed domestic trade deficit readings that widened to its highest in nearly three years.
The TSX fell 99.28 points, to 20,136.76.
The Canadian dollar swooned 0.64 cents to 74.14 cents U.S.
Canadian markets were closed Monday for Civic Holiday.
Barrick Gold beat analysts' expectations for second-quarter profit, while Burger King parent Restaurant Brands International topped market estimates for quarterly sales.
Barrick stock began the day and the short week down 17 cents to $21.87, while shares in Restaurant Brands vaulted $3.03, or 3.1%, to $101.37.
In the economic docket, Statistics Canada reported that, in June, Canada's merchandise exports decreased 2.2%, while imports were down 0.5%. As a result, Canada's merchandise trade deficit with the world widened from $2.7 billion in May to $3.7 billion in June.
ON BAYSTREET
The TSX Venture Exchange docked 5.59 points to 610.13.
All but one of the 12 TSX subgroups lost ground in the first hour, with materials and gold each down 1%, while information technology skidded 0.9%.
Only health-care made headway, plowing ahead 2.8%.
ON WALLSTREET
Stocks retreated Tuesday as a decline in bank shares dampened investor sentiment.
The Dow Jones Industrials dropped 422.18 points, or 1.2%, to begin Tuesday at 35,050.95. Monday, the 30-stock index had had its best day since June 15.
The S&P 500 index lost 45.34 points, or 1%, to 4,473.10.
The NASDAQ index deleted 171.7 points, or 1.2%, to 13,822.70.
Banks fell broadly after Moody’s downgraded the credit rating on several banks, including M&T Bank and Pinnacle Financial. The credit agency also placed Bank of N.Y. Mellon and State Street on review for a downgrade.
Goldman Sachs decreased 3% and JPMorgan Chase traded more than 2% lower.
Traders also parsed through the latest batch of earnings. UPS shares dropped more than 2% after the delivery giant reported weaker-than-expected revenue for the second quarter. The company also lowered its full-year revenue outlook. Educational technology company Chegg popped more than 6% after reporting second-quarter revenue of $183 million, beating analysts’ estimate of $177 million.
The corporate earnings season has so far been better-than-anticipated. With 89% of S&P 500 stocks done reporting quarterly results, about four-fifths of them have beaten Wall Street’s expectations.
Prices for the 10-year Treasury gained sharply, lowering yields to 4% from Monday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices sank 88 cents to $81.06 U.S. a barrel.
Gold prices slid eight dollars to $1,962.00 U.S. an ounce.
Selloff Intensifies, Dow Plummets 400+
