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Investors Take Profits to Close out April


Equities in Toronto moved lower on Tuesday, dragged down by materials stocks, while investors assessed economic data at home and in the U.S. ahead of the Federal Reserve’s interest rate decision later in the week.

The TSX Composite lost 87.92 points to open the last session of April at 21,923.70.

The Canadian dollar swooned 0.39 cents at 72.77 cents U.S.

Scotiabank on Monday appointed banking veteran Travis Machen as the CEO and group head of its global banking and markets unit, starting May 6. The bank’s stock docked seven cents to $63.42.

Gold miners like OceanaGold and New Gold among other companies are set to report their quarterly numbers on Tuesday. OceanaGold shares plunged 16 cents, or 4.8%, to $3.09, while those for New Gold fell eight cents, or 3.2%, to $2.45.

Restaurant Brands gained $2.16, or 2.1%, to $103.03 after its quarterly results beat analysts’ estimates.

Ivanhoe Mines withered $2.11, or 10.2% to $18.51, after its quarterly results.

Statistics Canada reported real gross domestic product grew for the second consecutive month, increasing 0.2% in February.

ON BAYSTREET

The TSX Venture Exchange dumped 5.53 points to 584.53.

Seven of the 12 subgroups were lower, as gold dropped 2.7%, materials eased 2%, and energy was off 1.2%.

The five gainers were led by information technology, springing 0.7%, while health-care was 0.4% haler and real-estate nicked ahead 0.1%.

ON WALLSTREET

Stocks traded into the red Tuesday after higher-than-expected wage data raised fresh inflation concerns ahead of the Federal Reserve’s rate decision on Wednesday. McDonald’s shares fell after disappointing earnings.

The Dow Jones Industrials stumbled 189.4 points to 38,196.69.

The S&P weakened 14.75 points to 5,101.42.

The NASDAQ faded 51.47 points to 15,931.61.

Stocks are headed for their first losing month since October as rate cut expectations dropped significantly from where they were at the start of the year. The 30-stock index is on pace for a more than 3% loss in April. The S&P 500 and NASDAQ Composite are headed for declines of more than 2%, each.

The busiest week of corporate earnings is set to continue with Amazon and Apple reporting their quarterly results Tuesday and Thursday, respectively. The April jobs report is also expected at the end of this week, preceded Wednesday by releases on job openings and private sector employment growth.

In early earnings news, McDonald’s missed quarterly earnings estimates as same-store sales fell short of expectations. Higher prices have scared away some low-income customers.

There’s plenty of economic news on the docket this week, with Fed policymakers convening for their two-day policy meeting on Tuesday. The central bank is broadly anticipated to keep interest rates steady, but traders worry Fed Chair Jerome Powell’s post-meeting comments will lean more hawkish after the recent spate of hotter inflation reports.

The employment cost index, a measure of wages and benefits, added 1.2% in the March quarter, above the 1% consensus estimate from economists polled by Dow Jones. Treasury yields jumped following the data.

Markets are pricing in just one quarter percentage point cut in 2024, as persistent inflation and a resilient economy raise the likelihood the Fed will stay higher for longer.

Prices for the 10-year Treasury sagged, lifting yields to 4.68% from Monday’s 4.62%. Treasury prices and yields move in opposite directions.

Oil prices fell $1.52 to $81.11 U.S. a barrel.

Gold prices tumbled $46.60 to $2,311.10.



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