Equities Flounder by Noon

Cronos, IMO in Focus

Equities in Canada’s largest market slid on Tuesday as technology shares fell sharply mirroring Wall Street peers, with investors on edge ahead of key inflation data that could set the tone for U.S. monetary policy tightening plans.

The TSX shed 78.99 points to break for lunch trading Tuesday at 19,590.18.

The Canadian dollar dipped 0.14 to 77.65 cents U.S.

Energy led the parade, with names such as Vermilion shooting up $1.03 or 3.5%, to $30.72, while Imperial Oil took on 53 cents, or 1%, to $54.77.

Among cannabis concerns, Cronos Group tumbled 59 cents, or 12.8%, to $4.01, as its quarterly revenue fell short of estimates and it flagged
higher costs.

ON BAYSTREET

The TSX Venture Exchange docked 5.87 points to 662.41.

Seven of the 12 TSX subgroups were lower midday, with health-care tailing off 6.9%, information technology sliding 3.3%, and real-estate worse off 0.8%.

The five gainers were led by energy, up 0.6%, utilities, improving 0.5%, and communications, better by 0.2%

ON WALLSTREET

Stocks fell on Tuesday as investors navigated a batch of disappointing company reports ahead of a key inflation reading.

The Dow Jones Industrials came off its lows of the morning, but still trailed breakeven 30.7 points to 32,801.84

The S&P 500 slipped 18.72 points to 4,120.34.

The NASDAQ Composite stumbled 181.27 points, or 1.4%, to 12,463.19.

The declines came after memory chipmaker Micron warned that revenue may fall short of its prior guidance because of “macroeconomic factors and supply chain constraints.” The stock fell more than 5%.

It’s been a rough week for chipmakers. On Monday, weaker-than-expected revenue guidance from Nvidia weighed on the group. Nvidia was lower again on Tuesday, shedding another 4% after a 6% decline on Monday.

Outside of chips, a pair of Nasdaq-listed stocks were also taking early hits. Novavax slumped 27% after slashing full-year revenue guidance because of poor demand for its COVID vaccines. Upstart declined nearly 10% after the consumer lending company reported second quarter results that missed both profit and revenue expectations.

Treasury prices staggered, raising yields to 2.79% from Monday’s 2.75%. Treasury prices and yields move in opposite directions.

Oil prices lost 51 cents to $90.25 U.S. a barrel.

Gold prices leaped $9.20 to $1,814.40 U.S. an ounce.