The Toronto stock market continued to fall Friday after energy and mining sectors took back some of the gains seen earlier in the week while data showed the U.S. economy was weaker than expected in the first quarter.
The S&P/TSX index dropped 109.31 points to finish the day and the week at 12,220.20, off its lows of the day.
The Canadian dollar strengthened 0.33 cents at 98.35 cents U.S.
The TSX was set to end the week higher, clawing back a chunk of last week’s 2.2% slide that was triggered by signs of global economic weakening, especially in China.
The majority of sectors on the Toronto exchange were down, led by steep declines in the base metals and mining, energy, gold and capped materials, as markets reacted to the lower than anticipated GDP numbers.
The TSX was also pulled down by a decline in the financials, as Manulife Financial dropped 12 cents to $14.57.
Metals and mining stocks slid as May copper moved down five cents to $3.18 U.S. Teck Resources fell 81 cents, or 3%, to $26.27.
The energy sector slipped, as Canadian Natural Resources gave back 62 cents to $29.58.
Pipeline and power company TransCanada Corp. reported net earnings below expectations. The company looking to build the Keystone XL pipeline said it had net income of $446 million or 63 cents each share in the first quarter. Comparable earnings a year earlier were $370 million or 52 cents per share — two cents per share below the consensus estimate.
TransCanada said it expects its long-delayed pipeline to be in service in the second half of 2015 — months later than its previous estimate as the company continues to await U.S. government approval for the project. Its shares were down 63 cents to $49.14.
In the gold sector, Barrick Gold faded 61 cents to $18.81.
Agnico-Eagle Mines Ltd. reported that it earned $23.9 million U.S. or 14 cents per share in the latest quarter, down from $78.5 million or 46 cents per share a year ago.
Revenue for the quarter totaled $423.2 million, down from $474.1 million. Its shares were down $2.12, or 6.3%, to $31.53.
No major Canadian economic data was released today.
ON BAYSTREET
The TSX Venture Exchange slid 3.30 points to 961.37
All but two of the 14 Toronto subgroups were lower Friday, weighed mostly by metals and mining stocks, down 4.5%, gold, off 3.7%, and materials, sliding 3.1%
Consumer staples and utilities proved the lone holdouts, ahead 0.1% each.
ON WALLSTREET
The latest reading on U.S. economic growth failed to excite investors Friday.
The Dow Jones Industrials eked higher by 11.75 points to end the day at 14,712.50
The S&P 500 index shaved off 2.92 to 1,582.24. The tech-heavy NASDAQ Composite retreated 10.72 points to 3,279.26
Meanwhile, investors continue to monitor a mixed bag of quarterly earnings reports.
D.R. Horton's stock price surged, after the home builder reported a near doubling of quarterly net income on Friday, riding the wave of the recovering housing market.
Burger King Worldwide rose after it reported an increase in profits.
Starbucks came under pressure after issuing downside guidance for the current quarter and reaffirming its revenue outlook for the year.
Amazon shares fell precipitously, after the online retailer reported a profit decline. Shares of Chinese search firm Baidu dropped more than 8% on weak earnings.
Shares of Expedia proved the biggest drag on the NASDAQ. The online travel site lowered its guidance for the year, blaming a slowdown in hotel reservations.
In other corporate news, shares of J.C. Penney surged after hedge fund mogul George Soros said Thursday that he had taken a 7.9% stake in the ailing retailer.
Economically speaking, the U.S. government said GDP grew at an annual pace of 2.5% in the first quarter. That fell short of the 2.8% economists were predicting and up from a measly 0.4% in the fourth quarter of 2012.
What’s more, a consumer sentiment index released early Friday also failed to inspire investors. Thomson Reuters/University of Michigan was revised higher for April, but it's still the lowest reading since January.
Prices on the 10-year U.S. Treasury grew, dropping yields to 1.66% from Thursday’s 1.71%. Treasury prices and yields move in opposite directions.
Oil prices faltered 83 cents to $92.83 U.S. a barrel.
Gold prices stepped back $3.90 to $1,458.10 U.S. an ounce
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