Highlights:
- TSX Barely Holds Onto Gains
- Health-Care Stocks Punished
Market Overview:
- Toronto stocks ended mildly positive on the day, as rises in prices for materials stocks offset losses for health-care and gold stocks, this as investors braced for the outcome of one of the most contentious U.S. presidential elections in history.
- The S&P/TSX Composite stayed positive 4.39 points to close at 14,656.84
- The Canadian dollar sprang higher 0.38 cents to 75.21 cents U.S.
- Among health-care plays, Valeant Pharmaceuticals International slumped $5.59, or 21.9% to $19.92 after the drug maker cut guidance for the year and warned that 2017 could be even more challenging as some products face new competition.
- Rival Concordia International stumbled 27 cents, or 10%, to $2.43
- Gold issues also took it on the chin as Barrick Gold collapsed 36 cents, or 1.6%, to $22.85, and Kinross Gold surrendered eight cents, or 1.5%, to $5.20.
- Utilities gave up strength, as Fortis Inc. lost 38 cents to $43.10
- Materials stocks gathered steam, as Teck Resources shot higher 75 cents, or 2.6%, to $29.73.
- Among energy concerns, Canadian Natural Resources dropped a penny to $40.63 and Suncor Energy strengthened five cents to $40.15
- On the economic front, Statistics Canada revealed municipalities issued $6.9 billion worth of building permits in September, down 7.0% from August.
- Quebec, British Columbia and Ontario recorded the largest declines. The overall decrease was attributable to lower construction intentions for non-residential buildings, led by commercial structures.
- Canada Mortgage and Housing Corp. reported seasonally adjusted annual rate of housing starts fell to 192,928 units in October, down from 219,363 units in September.
- The agency also says the drop came as the seasonally adjusted annual rate of urban starts fell 12.1% in October to 176,131 units. Rural starts were estimated at a seasonally adjusted annual rate of 16,797 units.
ON BAYSTREET:
- The TSX Venture Exchange fell 1.02 points to 756.85
- Eight of the 12 TSX subgroups were higher, as materials grew 0.7%, consumer discretionaries climbed 0.4%, and financials garnered 0.3%.
- The four laggards were weighed most by a 3.7% decline in health-care, while gold settled 1.4%, and utilities faded 0.6%.
ON WALLSTREET:
- U.S. equities closed higher on Tuesday, led by utilities, as investors eagerly awaited the results of the presidential election.
- The Dow Jones Industrials ended positive 72.83 points to 18,332.43, after a surge of 350 points Monday, with Travelers leading advancers and DuPont the biggest decliner.
- The S&P 500 gained 8.01 points at 2,139.53, with utilities leading 10 sectors higher and energy lagging. The index broke above its 50-day moving average during intraday trade for the first time since Oct. 10.
- The NASDAQ composite index finished positive 27.32 points to 5,193.49
- Financial markets around the world had been pricing in a victory for Democratic nominee Hillary Clinton over her Republican counterpart, Donald Trump.
- The economic calendar remains light Tuesday, with the September job openings and labour turnover survey (JOLTS) showing job openings were little changed at 5.5 million, with hirings down to 5.1 million.
- Prices for the 10-year Treasury lost strength, boosting yields to 1.87% from Monday’s 1.83%. Treasury prices and yields move in opposite directions.
- Oil prices gave up 16 cents to $44.73 U.S. a barrel
- Gold prices retreated $3.30 to $1,276.10 U.S. an ounce.
