The S&P/TSX Composite Index Registers Another Flat Day

The Canadian market remains directionless as we watch U.S. investors get wealthier by the day.

| More on:
The Motley Fool

The temperature’s dropping, there’s less daylight, and the kids are back to school, yet, the Canadian market is acting like it’s still the dog days of summer.

While the S&P 500 is having a September to remember, clocking a +4% gain thus far, today’s negligible gain for the S&P/TSX Composite (^GSPTSE) has our market once again lagging its U.S. peer after a strong summer run.

Helping to eke out today’s 10 basis point gain for the Canadian market were two of the big banks.  Royal Bank (TSX:RY) and its 0.62% gain was the biggest positive contributor, and TD Bank (TSX:TD) with its 0.70% gain was second.  Neither move was based on anything that resembled material news.

Holding our market back on this fine September Tuesday (in this part of Ontario at least) was Potash (TSX:POT) and Suncor Energy (TSX:SU).  Potash fell by 1.8% after its U.S. peer Mosaic lowered its sales, volume, and margin guidance for its potash and phosphates segments in the third quarter.  Cautious dealers and deferred purchases were cited as reasons for this lowered guidance.  Mosaic also lowered its price expectation for potash on the top end to $330 to $340 per tonne.

Suncor’s -0.72% day was also related to market oriented moves as the price of WTI Oil fell by just over 1% to close at US$105.49/barrel.  The support that oil received from the ongoing Syrian situation has begun to wane as U.S. actions appear increasingly unlikely.

Foolish Takeaway

Once again, resource and financial companies had a significant impact on our market’s performance.  Because of their heavy-weightings in the TSX, these stocks can be harmful for those investors that think they are well-diversified with an index fund or ETF linked to the S&P/TSX Composite Index.

We have prepared a Special FREE Report that will clue you into the perils of passively investing in the Canadian index and suggests an easy to implement alternative strategy.  The report is called “5 Stocks That Should Replace Your Canadian Index Fund”.  One of these 5 is in the process of being taken over at a huge premium.  You can find out who the remaining 4 are simply by clicking here.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

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

Fool contributor Iain Butler owns shares of Potash.  The Motley Fool doesn’t own shares in any of the companies mentioned.

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

A shopper makes purchases from an online store.
Investing

Best Stock to Buy Right Now: Shopify vs Lightspeed Commerce?

Let’s examine Shopity and LSPD to determine a better growth stock to buy right now.

Read more »

concept of real estate evaluation
Dividend Stocks

Why the Market Should Stop Hating on This Reliable REIT

You can get a lot of dividend income with an investment in Northwest Healthcare Properties REIT (TSX:NWH.UN).

Read more »

Lights glow in a cityscape at night.
Investing

What Are the Best REITs to Buy Now?

CT REIT (TSX:CRT.UN) remains one of my favourite REITs to consider picking up this year.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Max Your TFSA Impact: 4 Dividend Stocks to Buy and Hold Forever

Adding these TSX dividend stocks to your TFSA can maximize your portfolio's income potential and compound your returns over time.

Read more »

man touches brain to show a good idea
Dividend Stocks

This 6% Yield Has Survived Every Market Crash Since 1995

This top TSX stock boasts a yield of over 6% and a dividend track record that has weathered every market…

Read more »

Rocket lift off through the clouds
Tech Stocks

1 AI Stock Up 11% to Own in a TFSA for Long-Term Growth

Never mind chasing flashy AI start-ups with soaring valuations. Check out this profitable Canadian tech powerhouse that has stood the…

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Ivanhoe Mines: Buy, Sell, or Hold in July 2025?

Here's what to consider before trading Ivanhoe Mines stock this month. Watch out for July 30th!

Read more »

ETF stands for Exchange Traded Fund
Investing

Earn a 4.3% Yield From Berkshire Hathaway Stock With This Monthly Income ETF

This ETF uses options and leverage to generate income from Berkshire Hathaway

Read more »