Markets Struggle in Red Tuesday Morning

- May 1st, 2018

Morning Market Breakdown, May 1: The start of the month brought red across the board, affecting both markets and commodities.

The S&P/TSX Composite Index (INDEXTSI:OSPTX) dropped 61.05 points on Monday (April 30) to end the day at 15,607.88.

The index continued to struggle on Tuesday (May 1) morning as it fell 23.31 points to hit 15,584.57.

The S&P/TSX Venture Composite Index (INDEXTSI:JX) took a minor loss of 0.13 points on Monday, dropping to 783.63. It saw deeper losses on Tuesday morning, however, shedding 5.41 points to hit 778.22.

Strains in gold and consumer staples brought Canadian indexes down, as Barrick Gold (TSX:ABX,NYSE:ABX) fell 2.2 percent, Goldcorp (TSX:G,NYSE:GG) dropped 3.1 percent and Detour Gold (TSX:DGC) plummeted 7.7 percent. Metro (TSX:MRU) also fell 1.6 percent while Loblaw Companies (TSX:L) lost 1 percent; Agnico Eagle Mines (TSX:AEM,NYSE:AEM) dropped 4.2 percent.

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The Dow Jones Industrial Average (INDEXDJX:.DJI) splattered into the red on Monday when it fell 148.04 points to close at 24,163.15. It continued to fall Tuesday as it lost 148.74 points to hit 24,014.41.

The S&P 500 (INDEXSP:.INX) lost its gains from early on Monday, shedding 21.86 points to close at 2,648.05. The index continued to slope downwards on Tuesday as it dropped 5.84 points to hit 2,642.21.

While gains of 5.7 percent from McDonald’s (NYSE:MCD) and 1.8 percent from Apple (NASDAQ:AAPL) tried to push Wall Street forward, Boeing (NYSE:BA) dragged it back with a loss of 2.1 percent.

Meanwhile, struggles in the telecoms sector brought down the S&P 500 after T-Mobile (NASDAQ:TMUS) agreed to buy Sprint (NYSE:S); the stocks plummeted after some analysts expressed uncertainty about whether the deal will get federal approval. The sector as a whole lost 2.7 percent yesterday.

Note: All numbers shown above were accurate as of 10:00 a.m. EST.

Daily metals

Gold took a small hit on Monday when it fell to US$1,319.2 per ounce. It continued to plummet on Tuesday when it dropped to US$1,306.7. Silver slipped up on Monday when it closed at US$16.40 per ounce. It dropped further on Tuesday morning when it reached US$16.25.

Copper stabilized on Monday when it closed at US$3.07 per pound. It fell slightly on Tuesday morning as it landed at US$3.04.

Major miner news

  • Silvercorp Metals (TSX:SVM,NYSE:SVM): Silvercorp Metals has resumed partial milling operations at its Ying mine in China, following a temporary shutdown after a spillage incident. Milling operations are expected to resume in full within two weeks.
  • McEwen Mining (TSX:MUX,NYSE:MUX): The company reported “encouraging” exploration results from its Black Fox complex near Timmins, Ontario. A total of 42,400 meters of exploration drilling were completed in Q1, with highlights including intercepts of 639 g/t gold over 0.55 meters (from 72 meters) at Gibson Southwest; 5.24 g/t gold over 11.96 meters (from 204 meters) at Stock East; 4.5 g/t gold over 3.79 meters (550 meters UG level) at Black Fox; and 23.88 g/t gold equivalent over 6.47 meters (from 70 meters) at Tamarack.
  • Hecla Mining Company (NYSE:HL): Hecla Mining has agreed to settle an unfair labor practise charge filed by United Steelworkers in March 2017. The charge was in relation to Hecla’s Lucky Friday mine in Idaho; the company claims no material production is expected from the mine this year.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.

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