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The Canadian stock market was hit early and hit hard on Tuesday morning after falling commodity prices sent investors scrambling to unload gold miners, energy producers and even potash companies.
The S&P/TSX composite index fell 67 points, to 13,646 in early trading. Barrick Gold Corp. fell 0.4 per cent, EnCana Corp. fell 1.8 per cent and Potash Corp. of Saskatchewan Inc. fell 2.5 per cent.
Crude oil fell sharply, to $137.93 (U.S.) a barrel, down $3.44 – the lowest level since, gosh, June 25. Gold also fell, to $922.28 an ounce, down $3.44. The Reuters/Jefferies CRB index of commodities fell 1 per cent, suggesting a fairly broad-based retreat among commodities, as concerns arise that the slowing global economy is going to need less "stuff."
One of the few winners in Canada included WestJet Airlines Ltd., whose stock rose 5.3 per cent after it announced a strategic alliance with Southwest Airlines Co. and plans to expand capacity as competitors cut back their own. Nevertheless, WestJet's share price has been walloped along with other airline stocks this year, thanks to rising fuel costs.
In the United States, the Dow Jones industrial average fell 18 points, to 11,214. The broader S&P 500 fell 5 points, to 1247. There, financials continue to look weak, throwing a wet blanket on hopes for a rally from existing bear-market levels. Citigroup Inc. fell 1.1 per cent. As well, Alcoa Inc., which releases its second quarter results after the market closes, fell 1.7 per cent.
However, big pharmaceuticals showed some strength, with Merck & Co. Inc. rising 1.4 per cent and Pfizer Inc. rising 0.6 per cent.
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