TSX closes at 14-week low on hawkish Fed, lower gold prices

CME trader

Although the Fed kept rates unchanged, it struck a more hawkish tone than expected, no longer saying it expected price growth to stay below 2 percent.

Benchmark 10-year US Treasury yields held near four-year highs after the Fed's statement.

On Wall Street, the Dow Jones Industrial Average fell 369.84 points, or 1.41 percent, to 25,816.87, the S&P 500 lost 29.33 points, or 1.04 percent, to 2,792.65 and the Nasdaq Composite dropped 62.58 points, or 0.85 percent, to 7,323.28.

Instead, the 10-year Treasury yields would need to rise above 3 per cent - or about 30 basis points from their current 2.71 per cent - for the effects of higher borrowing costs to start to seep into the economy in the form of a slowdown in the housing market or consumer spending, fund managers say. But fast-rising wages could prompt more aggressive action to keep a lid on inflation pressure.

Spot gold dropped 0.99 percent to $1,335.50 an ounce.

Technology company Open Text Corp. was the biggest gainer, closing up 12.7 per cent after reporting a 35-per-cent increase in second-quarter revenue and seeing ratings upgrades by several analysts.

FedEx fell 0.8 per cent. But with a loss of about more than 1,000 points since Monday, it was the blue chip index's worst weekly performance in two years.

"It feels as though the grand era of interest rates below 3 percent will soon be in the rear-view mirror", said Mike Terwilliger, portfolio manager of Resource Liquid Alternatives for the Resource Credit Income Fund in NY.

Equity traders around the world have been firing on all cylinders in recent months, sending markets to record or multi-year highs, on confidence in the global economy, healthy earnings and optimism over Donald Trump's tax cuts.

Foreign Ministers from NAFTA Nations to Meet in Mexico
Ms Freeland will meet her U.S. and Mexican counterparts in Mexico City today to discuss the talks and other issues. Trade officials agreed on a new treaty's anti-corruption provisions and narrowed the gaps over customs issues.

WYNN RESORTS, LIMITED (NASDAQ:WYNN) Files An 8-K Regulation FD Disclosure
Market worth or Market capitalization is calculated by multiplying the price of a stock by its total number of outstanding shares. Following the sale, the director now owns 19,162 shares of the company's stock, valued at approximately $2,907,641.88.

Grammy victor Chris Stapleton announces July 19 show at Spokane Arena
Stapleton served as musical guest on this weekend's episode of Saturday Night Live , which was hosted by SNL alum Will Ferrell. He was one of the headliners at last summer's Mountain Home Country Music Festival in rural Elmore County.

Of the 11 major sectors of the S&P 500, four posted gains.

"At now high valuations for developed market equities, investors should tread cautiously in what remains a top-of-cycle environment, even if rising bond yields are more likely a headwind than a precursor to a crisis", said Alastair George, chief strategist at Edison Investment Research.

Analysts see fourth-quarter S&P 500 earnings growth of 14.9 per cent, up from 12 per cent expected on January 1.

Other notable stock movers included eBay (EBAY.O), up 13.8 percent after its earnings report, and its announcement that it would move away from PayPal (PYPL.O) as its main payments partner.

UPS was down 6.1 per cent after it reported fourth-quarter profit that was hurt by higher holiday season shipping costs. PayPal shares slid 8.1 percent. So far, of 227 companies that have reported, 79.7 per cent have come in above Street estimates.

"The selloff is just letting steam out of the kettle", said Stephen Massocca, managing director at Wedbush Securities in San Francisco.

Tech giants Amazon.com, Alphabet and Apple are due to report after the bell.

Declining issues outnumbered advancing ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.01-to-1 ratio favored decliners.

The S&P 500 index showed 12 new 52-week highs and 16 new lows, while the Nasdaq recorded 20 new highs and 32 new lows.

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