Commodities Pull the TSX Into the Red

A mid-week commodity sell-off sent shivers through the Canadian market.

| More on:
The Motley Fool

Weaker than expected Chinese PMI had the commodity space in a tizzy from the get-go today.  On a day that saw WTI oil, NYMEX natural gas, gold and copper down 2.7%, 0.5%, 1.4%, and 3.8% respectively, there was no way our market was going to finish in positive territory.

The S&P/TSX Composite (TSX:^OSPTX) finished above its lows of the day but still fell 135 points for a decline of 1.1%.  The U.S. Fed wrapped up its two-day policy-setting meeting by indicating that it remains poised to increase its stimulus program should the economy weaken.  This 2pm announcement gave the Canadian market a bit of a shot in the arm, however, after bouncing, stocks drifted lower into the close.

Movers

With the physical commodities having such a bad day it’s little wonder that several of the biggest contributors to today’s decline were resource related.  After leading the index higher yesterday Suncor Energy (TSX:SU) was today’s biggest drag as the stock declined 2.7%.  The combined impact that Goldcorp (TSX:G) and Yamana (TSX:YRI) had also helped pull the market lower.  These stocks fell 2.5% and 6.5% respectively.

With its 4.7% move higher Loblaw (TSX:L) made the day’s most significant positive contribution.  Loblaw released better than expected quarterly results this morning and hiked the dividend more than expected.

The S&P/TSX Composite Index is loaded with resource and financial stocks.  Because of this, investors that rely on Canadian Index funds or ETFs severely lack diversification in their portfolio.  We have created a special report that outlines an easy to implement strategy and 5 Canadian stocks that reduce the risks involved with passively investing in the Canadian market.  Click here now to receive “5 Stocks To Replace Your Canadian Index Fund” – FREE!

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler is short $32 July 2013 put options on Goldcorp.  The Motley Fool has no positions in the stocks mentioned above.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

A solar cell panel generates power in a country mountain landscape.
Energy Stocks

Clean Energy Play: Is Brookfield Renewable a Good Stock for a TFSA?

Add this top renewable energy stock to your self-directed TFSA portfolio for significant long-term and tax-free wealth growth.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

financial freedom sign
Investing

2 Stocks With Millionaire-Maker Potential

These two top Canadian stocks are among the best on the TSX, and each has the potential to be millionaire-maker…

Read more »

Piggy bank next to a financial report
Stocks for Beginners

Is It Finally the Right Time to Buy Bank Stocks?

Canadian bank stocks are some of the most secure investments out there, but of them all, this bank stock is…

Read more »

clock time
Investing

3 Blue-Chip Stocks Every Canadian Should Own

Want some reliable blue-chip Canadian stocks to buy and hold for the next 10 years? These three stocks are worth…

Read more »