TSX drops 236 points as resources and financials falter
S&P/TSX composite index
The TSX tumbled more than 200 points in Tuesday trading as energy prices fell and bank earnings failed to impress.
The S&P/TSX composite index dropped 236 points to end the day at 14,522. Most industry sectors were in negative territory, with energy and golds off more than three per cent, and down more than two per cent.
Crude oil futures plunged $3.38 to $128.85 US a barrel as the U.S. dollar strengthened and reports showed the soaring price of gasoline was cutting demand in the U.S. Suncor slid $3.09 to $68.15; Husky Energy fell $1.77 to $50.55.
Gold futures tumbled $17.90 US to $907.70 US an ounce. Barrick Gold lost $1.52 to $40.28; Goldcorp shed $1.28 to $40.02.
Fertilizer stocks also fell back. Potash Corp. shares dropped $6.89 to $188.99; Agrium fell $2.50 to $81.32.
The TSX financial sub-index fell 1.2 per cent. BMO and Scotiabank both reported lower Q2 profits.
BCE was a winner. Its shares rose $1.09 to $34.85 after the Supreme Court of Canada agreed to hold an expedited hearing into an appeal request from BCE. It's trying to overturn a lower court ruling that threw the telecom's takeover deal into question.
Research in Motion jumped $4.62 to $133.68, leading the IT group to a one per cent gain.
Since the benchmark index of the TSX hit a record high of 15,000 last week, the index has been slipping on profit-taking and lower commodity prices.
In New York, the Dow Jones industrial average rose 69 points to 12,548. The Nasdaq composite index rose 37 points to 2,482. American markets were closed Monday for Memorial Day.
New data from the U.S. showed consumer confidence fell to a 16-year low in May. A closely watched index of home prices also showed that average resale prices fell more than 14 per cent from last year's levels — the biggest annual drop in 20 years. But the U.S. markets took solace from lower oil prices and from a report that said U.S. new home sales unexpectedly rose in April.
The Canadian dollar was down .14 cents to 100.67 cents US.
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