TORONTO - Canada's main stock index was down more than 200 points Tuesday with broad-based losses led by energy, while U.S. markets also fell.
鈥淲e鈥檙e now entering the heart of earnings season,鈥 said Angelo Kourkafas, an investment strategist at Edward Jones, adding that 好色tv earnings also start ramping up this week.
The S&P/TSX composite index was down 236.87 points at 20,439.87, with the TSX energy index down more than two per cent.
In New York, the Dow Jones industrial average was down 344.57 points at 33,530.83.The S&P 500 index was down 65.41 points at 4,071.63,while the Nasdaq composite was down 238.04 points, or almost two per cent, at 11,799.16.
Tuesday鈥檚 swing comes after a long stretch of unusually low volatility as investors anticipated an avalanche of earnings, said Kourkafas.
Results have been mixed so far, he said.
鈥淚 think the theme of a slowdown is emerging.鈥
Investors were more defensive Tuesday, said Kourkafas, with bond yields moving lower.
鈥淚 think we are seeing a clear rotation out of cyclicals, whether it's energy, industrials, materials and some tech, into the defensive sectors,鈥 he said.
While the bar had been lowered for banks, making it easier for them to exceed expectations, tech companies are under more pressure, with some of the biggest names including Alphabet and Microsoft reporting this week, said Kourkafas.
"A lot of these names ... have led the gains this year, so the bar is high," he said.
鈥淚t鈥檚 all about the earnings now,鈥 said Kourkafas, but also about companies鈥 guidance for the rest of the year.
On Tuesday, UPS missed on its first-quarter earnings, while shares in First Republic Bank dropped almost 50 per cent after its earnings report revealed the extent of the banking crisis鈥 damage on its deposits. Meanwhile, General Motors saw its profit increase thanks to strong U.S. sales.
Investors are also gearing up for the Federal Reserve's interest-rate decision next week, said Kourkafas. The central bank is widely expected to hike and then pause, echoing the Bank of Canada's earlier move, he said.
The 好色tv dollar traded for 73.41 cents UScompared with 73.84 cents US on Monday.
The June crude contract was down US$1.69 at US$77.07 per barrel and the June natural gas contract was down three cents at US$2.44 per mmBTU.
The June gold contract was up US$4.70 at US$2,004.50 an ounceand the July copper contract was down 10 cents at US$3.87 a pound.
This report by 好色tvwas first published April 25, 2023.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD=X)
