Canadian stocks followed European and U.S. stocks lower on Tuesday over worries that political confusion in Greece may exacerbate the euro-zone’s financial woes.
The S&P/TSX Composite Index fell 155.81 points – or 1.3% -- to close out the day at 11,704.85
The Canadian dollar sank 0.52 cents to 100.17 cents U.S.
Resources and gold companies were some of the biggest losers with Kinross Gold Corp. tanking 6.4% to $7.73.
Kinross was scheduled to report first-quarter earnings after the closing bell. Analysts surveyed by Thomson Reuters are projecting the company to report earnings of 20 cents a share on revenue of $1.08 billion.
Teck Resources Ltd. shed 2.8% to $33.38, Goldcorp Inc. sank 4.3% to $34.39 and Agnico-Eagle Mines Ltd. fell 3.5% to $37.07.
There was also plenty of earnings news to digest.
Food company George Weston Ltd. said first-quarter net earnings attributable to shareholders grew 18% to $124 million from $105 million in the quarter a year earlier. Sales increased 1% to $7.22 billion from $ 7.15 billion a year ago but its shares dipped $1.62, or 2.7%, to $58.86.
Molson Coors Brewing Co. reported net income from continuing operations fell 3.9% to $79.4 million U.S., or 44 cents per share. But underlying earnings rose to $85.3 million U.S., or 47 cents per share. Net sales were up 0.1% to $691.4 million U.S. Its shares fell 61 cents, or 1.5%, to $41.43 U.S. in New York
Uranium One Inc. said its first-quarter earnings fell to $4.5 million from $14 million a year ago as it reported increased production, but lower uranium prices and a hedging-related charge. Revenue was $95.9 million compared to $101.9 million.
Excluding one-time items, the company reported adjusted earnings of $15.1 million, or two cents per share, compared with $15 million, or two cents in the same quarter of 2011 and its shares dropped 15 cents, or 5.3%, to $2.67.
On the economic slate, Canada Mortgage and Housing Corporation said housing starts unexpectedly surged in April by 14% to an annualized rate of 244,900, due primarily to a 27.4% surge in urban multiple starts, to 158,500.
ON BAYSTREET
The TSX Venture Exchange tumbled 59.05 points to 1,338.37, while the Nasdaq Canada fell 0.47 points to 381.75.
All but one of the 14 Toronto subgroups lost ground Tuesday, with gold toppling 3.6%, materials shedding 2.9%, and the metals and mining group sliding 2.6%.
Health-care stocks made up the lone stalwart group, inching up 0.6%.
ON WALLSTREET
A selloff gained momentum on Wall Street, with the Dow sinking more than 150 points, as Greece's uncertain political situation keeps investors on edge.
The Dow Jones Industrials lost 76.44 points at the closing bell to 12,932.10
The S&P 500 ducked back 5.88 points to 1,363.70. The tech-rich Nasdaq Composite Index slipped 11.49 to 2,946.27.
Shares of fashion accessories maker Fossil plunged after it reported first-quarter revenue that fell short of even the lowest forecasts.
Fast-food chain Wendy's reported operating income of one cent U.S. a share, falling short of analysts' forecasts for a profit of three cents U.S. a share.
Shares for Electronic Arts slipped after the video-game maker cut its first-quarter outlook for the period ending in June.
The Government Accountability Office issued a report Tuesday that the U.S. Treasury may eventually turn a $15.1-billion U.S. profit on its bailout of insurer AIG when all final payments and asset sales are complete.
McDonald's Corp.'s same-store sales increased 3.3%, both globally and in the U.S. market. Analysts were expecting sales to grow 5%, according to Reuters. Sales rose 3.5% in Europe, but only 1.1% in the unit that includes Asia-Pacific, Middle East and Africa.
In other corporate news, shares of DirecTV slipped even as the broadcast satellite provider reported slightly better earnings and sales in line with forecasts.
Entertainment conglomerate and Dow component Walt Disney will report earnings after the close. The studio had a blockbuster weekend with "The Avengers," which broke records with box office sales of $200.3 million U.S. during opening weekend. Those sales will not be included in this report, while an estimated $200 million U.S. in losses on epic bomb "John Carter" will.
All eyes will continue to be on Europe, a day after Greece's main centre-right party failed to form a coalition government. Now, the left-wing coalition, which is opposed to austerity as the way to close Greece's debt gap, will have three days to form a government.
The latest development feeds investors' fears that Greece might have to drop out of the euro-zone
As various parties grapple with forming a coalition government in Greece, it's looking increasingly likely that new elections will need to be held, most likely in mid-June. That throws into question whether Greece will be forced to renegotiate its bailout funding.
Greek leftist leader Alexis Tsipras on Tuesday laid out the radical agenda he hopes to pursue if he becomes prime minister, including the cancellation of international loan agreements to Greece that forced the country into sharp budget cuts.
In the bond market, investors bought €1.3 billion worth of short-term Greek government bills out of €2.6 billion offered. The yield was 4.69%, up from 4.55% at the last auction in April.
Meanwhile, European Union leaders are grappling with the need to boost economic growth during a time of austerity. Early Tuesday, European Council president Herman Van Rompuy set May 23 as the date for an unscheduled E.U. summit, announcing on his Twitter feed that it would be an "informal dinner."
The price on the benchmark 10-year U.S. Treasury strengthened, pushing the yield down to 1.84% from Monday’s 1.88%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell 65 cents to $97.29 U.S.
Gold futures for June delivery dropped $34.20 to $1,604.90 U.S. an ounce.
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