Canadian shares fell Wednesday as a more optimistic outlook of the U.S. economy, supported by better-than-expected growth and the Federal Reserve’s commitment to keep interest rates at record lows, dragged down safe-haven stocks.
The S&P TSX Composite Index fell Wednesday 96.46 points to 12,644.01.
The Canadian dollar was up 0.59 cents at 101.07 U.S. cents
The selling in Toronto came after an upward revision made in U.S. gross domestic product, to a 3% rate from the 2.8% previously estimated, in the final three months of last year
Among the notable decliners, shares of NovaGold Resources Inc. fell 37 cents, or 4.3%, to $8.18, and Barrick Gold Corp. shed $1.97, or 4%, to $47.28.
The S&P/TSX Capped Industrial dropped with shares of Progressive Waste Solutions sliding $1.26, or 5.9%, to $20.29, and Westport Innovation Inc. falling $2.72, or 6.4%, to $40.03.
SNC-Lavalin Group Inc. continued to lose ground after the stock plunged more than 20% on Tuesday. Canada’s largest engineering firm said it’s probing incorrect accounting of a $35-million payment it made.
SNC-Lavalin said Tuesday it expected a loss of $23 million related to its Libyan projects. The firm has been fighting allegations that the company had ties to Saadi Gadhafi, son of former Libyan leader Moammar Gadhafi. Shares tumbled $1.08, or 2.8%, to $37.35.
Energy stocks also moved lower. Canadian Natural Resources fell 72 cents, or 1.9%, to $36.77 as Enbridge Inc traded down 48 cents, or 1.2%, to $38.20.
On the earnings front, Torstar Corp. shares rose 43 cents, or 4.6%, to $9.78. The publisher of the Toronto Star and other publications said fourth-quarter earnings jumped to 81 Canadian cents a share from 45 Canadian cents in the same period a year earlier.
Transforce gained 83 cents, or 4.9%, to $17.93 on stronger fourth-quarter earnings and revenues.
ON BAYSTREET
The TSX Venture Exchange faltered 21.66 points to 1,671.53, while the Nasdaq Canada index dipped 6.23 points to 421.37
Eight of the 14 Toronto subgroups stayed negative on the day. Gold collapsed 3.8%, while materials slumped 2.8% and global base metals fell 2.4%.
The half-dozen gainers were led by consumer staples, up 0.9%, while utilities gathered 0.7%, and health-care stocks gained 0.5%.
ON WALLSTREET
In New York, with stocks trading roughly flat, Wednesday's biggest market moves were inked in the bonds, commodities and currency markets -- with 10-year Treasury yields surging higher and the price of gold, silver and the euro dropping dramatically.
The Dow Jones Industrials slid 53.05 points to end the session at 12,986.30. Even so, the big board gained 2.6% for the month of February.
The S&P 500 subtracted 6.48 points to 1,365.70, while the Nasdaq fell 19.87 points to 2,966.89
Apple shares moved higher, boosting the company's value on the stock market to above $500 billion U.S. -- another record high for what was already the world's most valuable company.
Shares of News Corp. rose after the media company announced that James Murdoch stepped down as executive chairman of the U.K. publishing unit. The son of Rupert Murdoch has been embroiled in questions over his role in a U.K. hacking scandal.
Shares of First Solar tumbled after the leading maker of thin-film solar panels issued disappointing quarterly results. First Solar also lowered its forecast for sales in 2012 late Tuesday.
Shares of Staples fell even though the office supply retailer posted better-than-expected earnings and sales figures for the fiscal fourth quarter.
Costco topped earnings and sales estimates for the fiscal second quarter, sending the stock higher.
Shares of Liz Claiborne fell despite posting fourth-quarter earnings in line with expectations, and better-than-expected sales.
Shortly after Federal Reserve Chairman Ben Bernanke started testifying before Congress at 10 a.m. ET Wednesday, yields on 10-year Treasuries rose above 2% from 1.94% within minutes, a huge leap.
Traders speculate that it may have been a large Treasury trade gone awry that caused many computer trading models to then make large interrelated trades in currencies and commodities.
Gold futures remain down more than 4%, and silver is down nearly 7%. The euro continues to fall.
Before U.S. markets opened, the ECB announced results of its second Long-Term Refinancing Operation, a program designed to let banks borrow money for three years at interest rates as low as 1%. The central bank said it will lend €529.5 billion, or $721.4 billion U.S., to European banks, more than the €500 billion it doled out during the program's first round in December.
Economically speaking, the U.S. government said the economy grew at an annual rate of 3% during the fourth quarter, up from its initial estimate of 2.8%.
The February installment of the Chicago Purchasing Managers Index came in higher than expected at 64.0, above January levels and still well above the 50 threshold that signifies manufacturing expansion.
The Federal Reserve also released its outlook report, which said that overall economic activity continued to increase at a modest to moderate pace in January and early February. The Fed's so-called Beige Book, which is a summary of outlooks from the 12 district banks across the country, found that manufacturing continues to expand.
Treasury prices for the 10-year note lost ground, moving yields up to 1.98% from Tuesday’s
1.93%. Treasury prices and yields move in opposite directions.
Oil for February delivery reversed field and gained 27 cents to $106.82 U.S. a barrel.
Gold futures for April delivery fell $65.10 to $1,722.50 U.S. an ounce.
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