Daily Wrap-Up: Another drop for the TSX as “New Valeant” fails to impress

Daily Wrap-Up: Another drop for the TSX as “New Valeant” fails to impress

Daily Wrap-Up: Another drop for the TSX as “New Valeant” fails to impress Another drop for the TSX as “New Valeant” fails to impress
There was a slump for shares in Valeant Pharmaceuticals Tuesday as the firm unveiled its strategy to recover from recent lows; but the markets appeared unimpressed with what the firm chose to call “New Valeant”.

The drop impacted the healthcare group of the main TSX, which was further hit by decline in oil and gold prices. The materials group did however manage to close higher along with utilities.

Wall Street was subdued ahead of President Trump’s speech to Congress while European and Asian indexes closed mixed.

The S&P/TSX Composite Index closed down 64.27 (0.42 per cent)
The Dow Jones closed down 25.20 (0.12 per cent)
Oil is trending lower (Brent $55.56, WTI $53.96 at 4.40pm)
Gold is trending lower (1249.10 at 4.40pm)
The loonie is valued at U$0.7526

BMO, Scotia report earnings
Two of Canada’s big banks reported their quarterly earnings Tuesday.

BMO’s net income was $1.53 billion ($2.28 per share), beating expectations of analysts polled by Reuters. For the same quarter a year earlier net income was $1.75 per share. Its capital markets and wealth management units saw particular strength.

Meanwhile, Bank of Nova Scotia reported net income of $2 billion ($1.58 per share), up from $1.81 billion ($1.44) for the same period of 2016. It was around the level expected by analysts and was driven by a strong showing for its international business.

$2 million fine for Sun Life unit
Authorities in Bermuda have fined a division of Canada’s Sun Life Financial for failing to comply with money laundering and terrorist financing laws, CBC News reports.

Sun Life Financial Investments Bermuda Ltd. was fined $1.5 million (round C$2 million) and had its business licence restricted. The report says that the Bermuda Monetary Authority has not given full details of the breach of its regulations but that several key elements were not complied with.

Energy, gasoline prices push industrial price index higher
The Industrial Price Index was up 0.4 per cent in January as energy and gasoline prices gained 2.7 per cent. Meanwhile, the Raw Materials Price Index was up 1.7 per cent as animals and animal product prices rose.

Statistics Canada’s figures show that over 12-months to January 2017, the Industrial Price Index was up 2.3 per cent while the Raw Materials Index was up 23 per cent, mostly due to the rise in crude oil products.

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