The Toronto stock market was lower Thursday as traders worry that the U.S. Federal Reserve may end its open-ended stimulus program of bond purchases by the end of the year.
The S&P/TSX composite index tumbled 74.08 points to end Thursday 12,639.97
The Canadian dollar fell 0.2 to 98.19 cents U.S.
The base metals sector declined, as copper prices closed down sharply for a second day with the March contract on the Nymex off five cents at $3.55 U.S. a pound, adding to a four-cent fall Wednesday. HudBay Minerals fell 72 cents to $9.35 while First Quantum Minerals gave back 77 cents to $18.73.
Consumer discretionary stocks fell, as Tim Hortons Inc. is planning to increase its quarterly dividend by 23.8%. It also said quarterly revenue was up 4.1% to $811.6 million, less than half the growth rate of the year as a whole. Net income attributable to shareholders also fell, dropping 2.5% from a year earlier to $100.3 million or 65 cents per share. Its shares dropped $1.50 to $49.30.
Canadian Tire Corp. Ltd. says quarterly net income was $163.1 million or $2 per diluted share, down 1.9% from a year ago. Revenue rose 1% to $3.16 billion and the retailer’s shares grew 69 cents to $68.91.
The industrials sector fell with shares in Bombardier Inc. down 39 cents or 9.1% to $3.89 on very heavy volume of 19.7 million shares after it said fourth-quarter net income fell by $200 million U.S. to just $14 million before adjustments, mostly due to weak results from its rail division. Ex-items, earnings were down $39 million or 17% to $188 million U.S. or 10 cents per share, which met expectations.
The energy sector fell while Canadian Natural Resources was down 58 cents to $29.99.
Financials were also weak as Bank of Montreal declined 61 cents to $62.71.
In the gold sector, Iamgold Inc. rose 28 cents to $7.85 while Kinross Gold advanced 14 cents to $7.75.
In other earnings news, grocer Loblaw Cos. Ltd earned quarterly net income of $143 million or 48 cents per diluted share, compared with $174 million or 60 cents per share a year ago. Revenue rose 1.2% to $7.46 billion from $7.37 billion. Its shares gained 67 cents to $40.42.
ON BAYSTREET
The TSX Venture Exchange regained 2.80 points to 1,133.97
Nine of the 14 Toronto subgroups were lower on the day, weighed down mostly by the metals and mining group, off 2.5%, global base metals, down 1.8%, and industrials, down 1.7%
The five gainers were led by gold, shining 1.3% brighter, utilities, gaining 1%, and telecoms, notching ahead 0.2%.
ON WALLSTREET
U. S. stocks declined for a second straight day Thursday on news of ongoing weakness in Europe, some weak economic reports and a warning of soft sales from Wal-Mart.
The Dow Jones Industrial Average lost 46.92 points to 13,880.60
The S&P 500 index sank 9.53 points to 1,502.42. The tech-heavy NASDAQ Composite dipped 32.92 points to 3,131.49
Wednesday and Thursday's combined losses mark the biggest two-day drop in U.S. stocks this year, and all three indexes are on track for their worst week of 2013. The S&P 500 is down 1.1%, and is headed for its first weekly loss of 2013, while the Dow is off 0.7% and the NASDAQ is down almost 2%.
Despite the recent losses, the major indexes are still up between 3% and 6% for the year.
On the corporate front, Wal-Mart reported earnings that beat forecasts but said sales had softened during the quarter. The retailer also hiked its annual dividend by 18%.
Tesla shares sank 9% after the electric-car maker posted a wider-than-expected loss for the fourth quarter.
Hewlett-Packard is reporting earnings after the closing bell.
Shares of Constellation Brands rose almost 3% after Anheuser-Busch InBev and Grupo Modelo SAB said they are in talks with the Justice Department to try and resolve an antitrust lawsuit challenging their planned merger. Last week, AB InBev agreed to sell Constellation its rights to distribute Modelo in the United States as well its brewery in Mexico, in an effort to rescue the deal.
Apple shares fell 0.6% after Foxconn said it is slowing its hiring of workers at factories in China. The Taiwanese company makes about 40% of the world's consumer electronics gadgets, including products and parts for Apple, Intel and Cisco.
Investors were disappointed Thursday after a survey of purchasing managers showed Europe's downturn worsened in February. The index has been stuck below 50 for a year, indicating the services sector has been contracting.
Speaking of things economic, U.S. initial jobless claims rose to 362,000 last week, coming in higher than economists were expecting.
The Consumer Price Index was unchanged month-over-month in January, and up 1.6% from a year ago. Core CPI, which strips the price of food and energy, increased 0.3% month-over-month in January, and 1.9% from a year earlier.
The U.S. National Association of Realtors reported that existing home sales rose 0.4% in January. But the number of homes for sale dropped to the lowest level in more than 13 years.
Prices on the 10-year U.S. Treasury were higher, pushing yields down to 1.98% from Wednesday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices dove $2.25 to $92.97 U.S. a barrel.
Gold prices fell $2.10 to $1,575.90 U.S. an ounce.
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