The Toronto stock market was lower Thursday, adding to a string of losses amid a lack of confidence lawmakers can stop the U.S. economy from going over the so-called fiscal cliff and data showing the 17-country euro-zone has fallen back into recession.
The S&P/TSX Composite Index backpedaled 118.41 points, to end Thursday at 11,811.38, compounding Wednesday’s 200-point-plus loss, which left the Toronto market in negative territory for the year.
The TSX has fallen 3.5% this past week to a low for the fall, after the results of the U.S. election essentially left the political landscape unchanged, making it clear it would be difficult to arrange a compromise in Washington.
The Canadian dollar was positive 0.24 cents to 99.87 cents U.S.
Gold stocks took the biggest bruising of the day, primarily Premier Gold Mines, falling 9.4% to $4.59, and Banro Gold took an 8.1% pasting to $3.65.
Utilities also suffered, mostly ATCO Ltd., which slid 5.3% to $71.75, and Just Energy, which fell 4.2% to $8.51.
In the materials sector, Fortuna Silver Mines got trounced 7.1% to $4.55, and Centerra Gold got walloped 5% to $8.49.
The lone bright spot, it seems, was in information technology, where Research In Motion climbed 3.8% to $8.83, and Open Text Corp. improved 2.5% to $53.25.
On the economic calendar, figures released this morning by Statistics Canada showed manufacturing sales advanced 0.4% to $49.8 billion in September. The gain reflected higher production in the aerospace product and parts industry and increased sales of primary metals.
The nation’s number crunchers said sales hiked in eight of 21 industries, representing just under half of Canadian manufacturing. They added sales of durable goods jumped 1.1% to $25.8 billion, while non-durable goods sales decreased 0.4% to $24.0 billion.
Moreover, the Canadian Real Estate Association (CREA) revealed that national home sales activity and average price were little changed last month.
CREA stated that home sales settled 0.1% from September to October, with actual (not seasonally adjusted) activity down 0.8% from October 2011. The MLS® Home Price Index boosted 3.6% in October – making for its smallest gain since May 2011.
ON BAYSTREET
The TSX Venture Exchange staggered 35.99 points to 1,222.70
All but one of the 14 Toronto subgroups were still negative on the day. Gold tumbled 2.8%, while utilities tailed off 2.5% and materials doffed 2.4%.
The lone gainer was information technology, clicking 0.7% higher.
ON WALLSTREET
Stocks dropped Thursday, as investors weighed negative reports on the U.S. economy and turmoil overseas.
The Dow Jones Industrials ended the day down 28.57 points to 12,542.40
The S&P 500 fell 2.17 points to 1,353.32, and the Nasdaq Composite Index dropped 9.87 points to 2,836.94
BP agreed to plead guilty to criminal charges over the Deepwater Horizon disaster in the Gulf of Mexico and will pay $4 billion U.S. to resolve criminal charges. Shares were slightly up in afternoon trading.
Wal-Mart shares slid 4% after the number-one retailer's revenue fell short of forecasts, and the company cited currency fluctuations and "economic conditions" as negative factors impacting its sales.
Target shares rose nearly 2% after the retailer reported earnings in line with forecasts, but missed revenue forecasts.
Shares of United Airlines dropped more than 1% after the company announced a computer outage that affected some of its flights.
Apple's stock, already in bear market territory, slipped to a six-month low, falling more than 2%.
PetSmart beat earnings expectations, sending its shares soaring.
Fiscal cliff fears in the United States remain a heightened concern for market participants.
President Obama met with business leaders Wednesday to discuss the fiscal cliff and is scheduled to meet with congressional leaders Friday.
Overseas, China's ruling Communist Party named its next seven leaders, the euro-zone officially entered a double-dip recession, and Israel launched a series of blistering air strikes Wednesday on what it said were terrorist targets in Gaza.
The euro-zone officially slipped into recession in the third quarter, as official figures showed growth among the 17 euro countries shrinking 0.1%. It's the second recession in the area since 2009.
Economically speaking, the report on initial jobless claims showed the lingering effects of Superstorm Sandy in the Northeast: 439,000 people filed for their first week of unemployment benefits last week. That was much higher than the forecast of 388,000 in jobless claims and it is the highest jobless claims tally since the last week of April, 2011.
Meanwhile, the Consumer Price Index showed that inflation ticked up 0.1% in October, as expected.
Moreover, at a speech in Atlanta, Federal Reserve Chairman Ben Bernanke said the Fed is willing to do what it can to help the housing market. He said housing is rebounding, but still faces challenges.
The price on the benchmark 10-year U.S. Treasury was unchanged, keeping yields at Wednesday’s 1.59%.
Oil prices retracted $1.06 to $85.26 U.S. a barrel.
Gold prices subtracted $17.10 an ounce to $1,713 U.S.
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