The Toronto stock market was deep in the red Wednesday as investors sold off across most sectors and commodities tumbled as indications of slowing growth in the Chinese and American economies raised another round of concerns.
The S&P/TSX index went south 135.21 points, or 1.1%, to finish Wednesday at 12,321.29
The Canadian dollar ditched 0.08 cents to 99.19 cents U.S.
The metals and mining sector dropped as July copper fell 11 cents to $3.08 U.S. a pound. China is the world's biggest consumer of the metal. First Quantum Minerals, which posts earnings Wednesday, fell 65 cents to $16.94.
The gold sector was also down about as Goldcorp Inc. faded 90 cents to $28.92.
The energy sector fell as Canadian Natural Resources lost 50 cents to $29.05.
Talisman Energy posted a quarterly net loss of $213 million, or 21 cents per share, in the first quarter, compared with a profit of $291 million, or 28 cents per share, a year earlier. Its shares gave back 83 cents to $11.25.
The tech sector was also weak with BlackBerry down 69 cents to $15.81 as it launched the long-awaited Q10 smartphone with a physical keyboard.
Industrials also weighed on the Toronto market with Canadian Pacific Railway down $2.51 to $123.05.
And the financials sector fell as CIBC shed 83 cents to $79.74.
Elsewhere on the earnings front, Loblaw Companies Ltd. jumped $1.90, or 4.5%, to $44.65 as it reported a 40% increase in first-quarter net income to $171 million or 61 cents per share while revenue rose to $7.2 billion from $6.94 billion.
The grocer also increased its quarterly dividend to 24 cents per common share from 22 cents and said it plans to compete in the initial public offering of its real estate investment trust in early to mid-July.
In other corporate developments, Tim Hortons Inc. shares gained $1.92 to $56.50 after a report that U.S. investment firm Highfields Capital is pushing for changes at the chain including a big buy back of stock and a spin off of its real estate holdings.
ON BAYSTREET
The TSX Venture Exchange let go of 3.86 Wednesday to 961.94
All but two of the 14 Toronto subgroups were lower Wednesday, led by a 2.4% drop in gold stocks, while energy and materials each slid 2%.
The two gainers were consumer discretionaries, up 0.3%, and telecoms, up a mere 0.1%.
ON WALLSTREET
While it was only the first day of the month, investors took a step back ... and the latest statement from the U.S. Federal Reserve didn't help matters.
The Dow Jones Industrials tumbled 138.85 points to 14,701.
The S&P 500 index dipped 14.87 to 1,582.70. The NASDAQ Composite shed 29.66 points to 3,299.13
Shares of T-Mobile rose as they made their debut on the New York Stock Exchange following the merger with MetroPCS.
Humana shares jumped the most in the S&P 500 after the health-care company delivered a strong first-quarter profit thanks to lower benefit expenses and increased membership.
Genworth Financial shares surged after the company said that its quarterly profit more than doubled. The stock was the second biggest winner in the S&P 500.
Facebook was on deck to report earnings in the afternoon.
Apple's stock price edged down, a day after rising more than 3% ahead of it record $17-billion U.S. bond sale
Economically speaking, the latest jobs data have been particularly disappointing, with the March jobs report as well as Wednesday's report from payroll processor ADP signaling a sharp slowdown in hiring. That's particularly concerning ahead of the government's April jobs report due Friday. Economists expect a gain of 155,000 jobs.
Manufacturing activity and retail sales have also been slowing. And while a majority of U.S. companies have been exceeding earnings growth forecasts, they've largely been falling short of revenue growth expectations.
The Fed's policies have widely been given credit for boosting stocks. In previous years, the rally and the economy lost steam as the Fed neared the end of its bond buying programs: QE1 in 2010, QE2 in 2011 and Operation Twist in 2012.
But the current bond buying program -- $85 billion U.S. a month -- is not expected to taper off until later this year at the earliest, said one expert.
Prices on the 10-year U.S. Treasury jumped, pushing yields lower to 1.64% from Tuesday’s 1.68%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.50 to $90.96 U.S. a barrel.
Gold prices were down $18.10 at $1,456 U.S. an ounce
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