S&P/TSX composite falling, U.S. stocks mixed
By The Canadian Press on August 1, 2023.
TORONTO – Canada’s main stock index fell almost 100 points with weakness in financials, base metals and utilities helping drag the index lower, while U.S. markets were mixed on the heels of fresh economic data and the continuing second-quarter earnings season. Markets were softer Tuesday as new data showed signs of cooling in the labour market, as well as in the manufacturing sector. The S&P/TSX composite index closed down 93.71 points at 20,532.93. In New York, the Dow Jones industrial average was up 71.15 points at 35,630.68. The S&P 500 index was down 12.23 points at 4,576.73, while the Nasdaq composite was down 62.11 points at 14,283.91. Job openings in the U.S. fell to 9.6 million in June, the fewest in more than two years, while fewer people quit their jobs that month as well. Economists had been expecting more job openings in June. But from a historical standpoint, the labour market is still quite strong, said Brianne Gardner, senior wealth manager of Velocity Investment Partners at Raymond James Ltd. “For an economy said to be on the brink of a recession, the U.S. looks to be kind of full-steam ahead,” she said. Two reports on the manufacturing industry also showed the sector continuing to decline. While many think a recession may be off the table for the U.S. economy, Tuesday’s data is contributing to some uncertainty, said Gardner. “I think that people are watching data closely, (and) earnings closely,” she said. However, she noted that August and September tend to be weaker months for the stock market. “After the rally we’ve seen up so far year to date, I wouldn’t be surprised “¦ that we are due for some volatility headed into the fall.” Companies’ second-quarter earnings results continued to pour in, with names like Uber, Merck, Pfizer and Starbucks reporting. Most companies are beating expectations so far, said Gardner. “We’re seeing some big names reporting this week,” she said. Investors are eyeing companies’ guidance in earnings reports, and that’s what is really driving moves, said Gardner. The Canadian dollar traded for 75.24 cents US compared with 75.89 cents US on Monday. The September crude oil contract was down 43 cents at US$81.37 per barrel and the September natural gas contract was down seven cents at US$2.56 per mmBTU. The December gold contract was down US$30.40 at US$1978.80 an ounce and the September copper contract was down 10 cents at US$3.91 a pound. – With files from The Associated Press This report by The Canadian Press was first published Aug. 1, 2023. Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X) Note to readers: This is a corrected story. A previous version had the incorrect CAD/USD exchange rate for Monday July 31. 23-22
