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Mighty tumble for TSX
[July 31, 2014]

Mighty tumble for TSX


(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Valeant sells off Equities in Toronto declined on Thursday as Argentina's default kindled worries about the stability of the economic recovery in the region and shares of Valeant Pharmaceuticals International fell after the company cut its outlook.



The S&P/TSX composite index plunged 194.09 points, or 1.3%, to close at 15,330.73 The Canadian dollar was flat at 91.72 cents U.S.

Argentina defaulted for the second time in 12 years after hopes for a midnight deal with holdout creditors were dashed.


Investors tried to gauge the effect of the news on broader financial markets and economies beyond Argentina, and the uncertainty resulted in a spike in volatility.

Further, geopolitical tensions remained high as Russia announced measures to try to counter U.S. And European sanctions over Ukraine.

Shares of energy producers went lower as Canadian Natural Resources lost 2.7% to $47.53, and Talisman Energy Inc fell 3.8% to $11.41.

Suncor Energy reported a drop in second-quarter profit late on Wednesday, and its shares shed 2.2% to $44.77.

Valeant, embroiled in a battle to take over Botox-maker Allergan, cut its full-year profit and revenue forecasts to reflect the sale of its rights to several skincare products. The stock tumbled 7% to $127.83.

Open Text reported on Wednesday a better-than-expected 42% jump in quarterly revenue, largely driven by higher demand for its cloud services. Shares of the business software maker shot up 14.5% to $60.64.

On the economic beat, Statistics Canada reported this morning that real gross domestic product rose 0.4% in May, a fifth consecutive monthly increase. The output of service industries grew 0.4% and the output of goods-producing industries increased 0.5%.

ON BAYSTREET The TSX Venture Exchange lost 9.58 points to 1,001.52 All but of the 14 Toronto subgroups were lower, as health-care decreased 2.7%, metals and mining was down 2.3%, and gold was off 2.2%.

Only information technology stocks held out against the negative tide and gained 2.4%.

ON WALLSTREET Thursday may have been the worst day for stocks in three months.

The Dow Jones Industrials plummeted 304.33 points, or 1.8%, to 16,576.03, erasing all of its gains for the year.

The S&P 500 fell 38.41 points, or 2%, to 1,931.66. The NASDAQ composite reversed 93.13 points, or 2.1%, to 4,369.77.

Yum Brands, the conglomerate behind KFC, Taco Bell and Pizza Hut, warned that the tainted meat scandal in China could hurt its profits for the year. The stock dropped 5%.

Whole Foods is also hurting. Despite reporting good earnings, the company disappointed on sales and also cut its outlook guidance once again, raising questions about the company's future direction. Its shares, which have been among the worst performers this year, are down more than 2.5%.

3-D printing stocks are sinking after a poor earnings report from 3D Systems. Its shares dived more than 11% and that put pressure on rivals voxelJet, Stratasys and ExOne, which are all down.

A few big names are managing to hold up well. T-Mobile was up 6% following reports that French telecom firm Iliad made a buyout offer. Sprint, long considered a potential merger partner, is down 6%.

Business card maker Vistaprint surprised analysts by turning a profit on strong sales, skyrocketing 31%.

World Wrestling Entertainment,after announcing that it was cutting 7% of its workforce, is up 3.5%.

And red-hot grilled chicken IPO El Pollo Loco was up 12% today.

Glu Mobile developed a wildly popular game based around celebrity Kim Kardashian, but Wall Street isn't impressed. Even though results beat expectations, the stock is down 17% after announcing that it was buying Cie Games for $100 million.

Prices for 10-year U.S. Treasuries faded a bit, raising yields to 2.56% from Wednesday's 2.55%. Treasury prices and yields move in opposite directions.

Oil prices dropped $2.19 to $98.08 U.S. a barrel.

Gold prices backpedaled $11.40 to $1,283.50 U.S. an ounce.

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