The TSX (Toronto Stock Exchange) moved 90 points lower on
Tuesday as Energy and Mining shares were the catalyst for broad
losses across the resources heavy index. The decline in WTI crude
oil below US$100 dollar per barrel eroded the broader market, along
with comments from Fed Chair Janet Yellen.
Stock of the day, for the second straight day, was Bombardier
(BBD-B.TO), which was very much in the news again Tuesday,
announcing a plethora of potential new sales deals, after a
similarly busy Monday. Its shares rose 1.5% yesterday. Today, the
stock dipped $0.04 to $3.79 with more than 4.7 million shares
changing hands, more than the 30 day average near four million.
The Fed Chair reiterated significant slack remains in the system
and the recovery is incomplete, and she implied that the path to
policy tightening could be either sped or slowed by the performance
of the labor market ahead. While the timing of a rate hike relative
to the end of QE next fall is of course yet to be decided, she was
surprisingly specific about "substantially stretched" valuations in
some parts of the tech sector, munies and leveraged loans.
Of commodities, crude
moved lower, slicing through $100 dollars a barrel for the first
time since early May. August crude on the New York Mercantile
Exchange dropped $1.20 to US$99.71. Prices have fallen sharply over
the last week as worries about supply disruptions from Iraq
Gold prices continued to fall, dropping below $1,300 an ounce to
close $11.6 at $1,295. Prices have declined $42 per ounce in the
last two trading sessions.
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