February 24, 2016 - 12:40 AM EST
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TSX Tumbles with Oil Prices

RBC Drops with Flat Profit

Equities in

fell on Wednesday as a drop in crude oil prices weighed on energy stocks, while financials fell after one of the country's largest banks reported a lower-than-expected quarterly profit.

The S&P/TSX Composite Index lumbered lower 199.3 points, or 1.6%, to open at 12,564.14.

The Canadian dollar dipped 0.28 cents to 72.21 cents


Royal Bank of Canada reported a quarterly profit that missed market estimates on Wednesday, hurt by weakness in its insurance and capital markets businesses.

RBC shares took a nosedive $2.98, or 4.3%, to $66.65.

Encana Corp cut its capital budget and production target for 2016, and said it would slash more jobs as the company struggles to cope with a steep fall in oil prices.

Encana shares hiked 70 cents, or 16.8%, to $4.85.

BlackBerry said it has acquired

-based cyber security consultancy Encription, moving the company deeper into the services business as it continues to morph into a more software-focused entity amid its ongoing turnaround.

The company once known as Research In Motion faded in price 21 cents, or 2.1%, to $9.79.

Canaccord Genuity raised the target price on Altus Group to $27.00 from $24.00, with a buy rating.

Altus shares took on two cents to $18.00.

BofA Merrill Lynch raised the target on Bank of Montreal to $86.00 from $84.00, with a neutral rating.

BMO shares dipped $1.99, or 2.7%, to $71.69.

CIBC raised the target price on Birchcliff Energy to $7.00 from $6.00. Birchcliff shares docked five cents, or 1%, to $4.80.


The TSX Venture Exchange regained 2.76 points to 535.34

All but two of the 13 TSX subgroups were lower, as metals and mining dove 7.2%, financials were off 2.9%, and energy slid 2.1%.

The two gainers were in gold, up 3.4%, and materials, gaining 1%.


stocks traded more than 1% lower Wednesday, pressured by continued declines in oil prices as hopes of curbing oversupply waned.

The Dow Jones industrial average dropped 232.06 points, or 1.4%, to 16,199.72, with Caterpillar leading decliners and United Technologies the only gainer.

The S&P 500 slumped 26.99 points, or 1.4%, to 1,894.37, with energy and financials the greatest laggards. Utilities proved the only gainer.

The NASDAQ index tumbled 68.16 points, or 1.5%, to 4,435.42

The major

averages extended losses slightly after the Markit Flash February report on services PMI came in at 49.8, down sharply from 53.2 in January and a touch below the key 50.0 level.

New home sales for January hit 494,000, below the expected 520,000

Prices for the 10-year Treasury spiked, lowering yields to 1.66% from Tuesday's 1.74%. Treasury prices and yields move in opposite directions.

Oil prices fell $1.22 a barrel to $30.65


Gold prices marched higher $24.13 to $1,250.98

an ounce.

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Source: Equities.com News (February 24, 2016 - 12:40 AM EST)

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