Deteriorating global economic prospects continued to weigh on the Toronto stock market Wednesday as a less-than-sizzling outlook from Alcoa Inc. added to a pessimistic assessment from the International Monetary Fund.
The S&P/TSX composite index closed the day down 61.15 points, to 12,212.42
The Canadian dollar lost 0.31 cents to 101.93 cents U.S.
The aluminum producer is viewed as an economic bellwether, its products used in a wide variety of industries.
Alcoa shares were down substantially as the company kicked off the start of the third-quarter reporting season by posting a loss of $143 million U.S., largely on one-time charges while adjusted results beat estimates. Revenue of $5.83 billion U.S. also beat expectations
On this side of the border, pharmacy chain Jean Coutu Group said that its quarterly net profit was $51.2 million or 23 cents per share. That compared with $66.4 million or 20 cents per share in the comparable year-earlier period when it recorded an unusual gain on the sale of U.S. assets.
Revenue for its fiscal 2013 second quarter rose to $658.7 million from $635.2 million in the same fiscal 2012 period and the Quebec-based company’s shares were up four cents to $14.57.
The financials sector declined as Sun Life Financial shed 30 cents to $32.27.
The base metals was down as the IMF also downgraded growth prospects for China while December copper was unchanged at $3.72 U.S. a pound. Taseko Mines gave back 11 cents to $3.01.
The energy sector also faltered with oil prices relatively flat after concerns about supplies from the Middle East and the North Sea had pushed crude prices up more than $3 U.S. on Tuesday. Suncor Energy fell 40 cents to $32.29.
The gold sector limited TSX losses, with Kinross Gold Corp. tacking on seven cents to $10.25.
In other corporate news, Bauer Performance Sports Ltd. is buying team uniform maker Inaria International for $7 million. The hockey and lacrosse equipment company said the deal will help expand its business to include uniforms and its shares were down 11 cents to $10.84.
There was no Canadian economic data released Wednesday.
ON BAYSTREET
The TSX Venture Exchange jettisoned 25.66 points to 1,302.15
All but four of the 14 Toronto subgroups were lower on the day. Energy stocks slipped 1.2%, while metals and mining stocks fell 0.9% and global base metals dipped 0.8%.
The four gainers were led by gold, up 0.7%, consumer staples, gaining 0.4%, and telecoms, nosing up 0.1%.
ON WALLSTREET
Equities were under pressure Wednesday as concerns about China's slowing growth and corporate earnings mounted.
The Dow Jones Industrial average capsized 128.56 points, or nearly 1%, to 13,345.
The S&P 500 stumbled 9.97 points to 1,431.51, while the tech-rich Nasdaq fell 13.24 points to 3,051.78.
Alcoa sold off sharply and weighed on the Dow after the aluminum producer cut its forecast for Chinese demand late Tuesday. Shares of fellow Dow component Chevron also sank after the oil company said its third-quarter earnings would be "substantially lower" than second quarter results.
Consumer staples were among the best performers. Walmart rose to a record high as the nation's largest retailer holds its annual meeting. McDonald's was also strong. In the banking sector, shares of JPMorgan rose ahead of the bank's quarterly earnings report Friday.
Alcoa's cautious outlook for China came one day after a report showed sales of Japanese cars in that country fell unexpectedly -- partly due to worsening relations between the two nations over a territorial dispute concerning a band of islands.
However, China news wasn't all bad. Shares of Yum Brands rose 8% after it reported earnings Tuesday that topped expectations and reassured investors that sales at its China-based restaurants were still growing at a robust pace.
In the United States, third-quarter earnings continued Wednesday morning with Costco reporting better-than-expected results.
Analysts put the market is in a "holding pattern" ahead of a slew of corporate reports due next week, expecting third-quarter earnings for the S&P 500 to decline 1.2%, the worst since the third quarter of 2009.
In addition to earnings, investors took in the latest edition of the Federal Reserve's latest snapshot of economic conditions across its 12 districts. The Beige Book showed economic activity overall continued to expand in late September and early October.
Elsewhere on the economic slate, the Mortgage Bankers Association reported mortgage applications fell 1.2% last week compared to the previous week. The U.S. Census Bureau said wholesale trade rose 2.1% in August versus the same month last year.
The price of the benchmark 10-year U.S. Treasury regained lost strength, pushing the yield down to 1.69% from 1.72% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices lost a dollar to $91.37 U.S. a barrel.
Gold prices decreased 40 cents to $1,764.70 U.S. an ounce.
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