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TSX Suffers Double-Digit Dive

Published 2024-05-28, 12:23 p/m
© Reuters.  TSX Suffers Double-Digit Dive
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Baystreet.ca - Equities in Canada’s largest market took a header Tuesday, weakness in resource stocks the main culprit. The S&P/TSX Composite Index retreated 108.33 points to conclude Tuesday at 22,265.05.The Canadian dollar dipped 0.08 cents at 73.29 cents U.S. Industrials put the heaviest weight on the market, with Brookfield Business (TSX:BBUC) Partner units capsizing $1.43, or 5.4%, to $25.00, while Cargojet (TSX:CJT) fell $3.80, or 3.3%, to $112.91.

In consumer discretionary stocks, Aritzia (TSX:ATZ) slid 72 cents, or 2.2%, to $32.63, while Canadian Tire (TSX:CTCa) handed over $2.59, or 1.9%, to $134.51. Among real-estate stocks, Boardwalk REIT (TSX:BEI_u) backtracked $1.95, or 2.8%, to $69.01, while Killam REIT units lost 40 cents, or 2.3%, to $17.07. Energy stocks proved the one gaining subgroups with results available at press time. Baytex Energy (TSX:BTE) took on 25 cents, or 5.2%, to $5.04, while Freehold Royalties (TSX:FRU) picked up 45 cents, or 3.3%, to $14.09.

On the economic slate, Statistics Canada said its Industrial Product Price Index rose 1.5% month over month in April and increased 1.4% year over year. The Raw Materials Price Index increased 5.5% monthly in April 2024 and was 3.1% higher compared with April 2023.

ON BAYSTREET The TSX Venture Exchange gained 4.62 points to end Tuesday’s session at 611.03. Eight of the 12 subgroups were negative, with industrials descending 1.9%, while consumer discretionary and real-estate stocks each shed 1.4%. The four gainers were led by energy, up 1.4%, gold soaring 1%, and materials up 0.8%.

ON WALLSTREET The Dow Jones Industrial Average retreated on Tuesday as concern over rising yields dented investor sentiment to start the week.The 30-stock index dumped 216.73 points to close Tuesday at 38,852.86. The index was weighed down by a slide in Merck and other health names.The S&P 500 inched forward 1.32 points to 5,306.04.The NASDAQ barreled ahead 99.09 points to 17,019.88. The technology-heavy index was buoyed by Nvidia’s jump of more than 6%.Those moves come near the end of a strong month, with all three major indexes recording fresh record levels in May.

Softer inflation data earlier this month and better-than-expected quarterly earnings reports lifted sentiment, with the former suggesting Federal Reserve rate cuts could come earlier than investors had anticipated. The Dow has added around 3%, while the S&P 500 gained 5% and NASDAQ has climbed more than 8%. Looking ahead, investors are gearing up for the personal income and expenditures report, which includes the PCE inflation reading, for April out Friday.Prices for the 10-year Treasury collapsed, raising yields to 4.54% from Friday’s 4.47%. Treasury prices and yields move in opposite directions. Oil prices picked up $2.45 to $80.17 U.S. a barrel. Gold prices added $24.90 to $2,359.40.

This content was originally published on Baystreet.ca

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