The Toronto stock market closed lower Wednesday, weighed down by some earnings misses while mining stocks fell amid data that showed a deepening slowdown in China's manufacturing sector.
The S&P/TSX Composite Index fell 73.08 points to end Wednesday at 12,672.30
The Canadian dollar dropped 0.22 cents to 96.98 cents U.S.
Cenovus Energy Inc. had $255 million or 34 cents per share in operating earnings and a $179-million net profit in the second quarter.
The operating earnings were 14 cents below a consensus estimate of 48 cents and Cenovus also said its 2013 oilsands operating costs this year will be higher than forecast in its previous guidance. Its shares fell $1.76 to $30.49.
Canadian Pacific Railway posted net income for the second-quarter of $252 million, or $1.43 per diluted share, versus $103 million, or 60 cents per share, a year earlier. The earnings missed estimates by six cents a share and its stock dropped $2.74 to $127.44.
But CP's operating ratio, which is a key measure of how efficiently railways operate, improved to 71.9% in the second quarter, an all-time record for the railroad.
On a more positive note, Rogers Communications Inc. shares were ahead 72 cents to $41.95 as the company reported $497 million in quarterly adjusted net income, a 4% increase from last year and better than analysts' consensus estimate of $491.95 million.
Loblaw Companies Ltd. made $178 million in net earnings in the second quarter, up from $156 million in the same period a year ago.
The grocer's basic net earnings per common share rose 14.5% in the quarter to 63 cents, about five cents per share better than a consensus estimate compiled by Thomson Reuters and its shares advanced $1.52 to $49.46.
The TSX base metals sector fell amid weak Chinese manufacturing data while metal prices declined with September copper down two cents to $3.18 U.S. a pound.
An HSBC survey showed China's manufacturing at an 11-month low this month. HSBC said the preliminary version of its monthly purchasing managers index declined to 47.7 this month from June's 48.2 on a 100-point scale on which numbers below 50 show a contraction in activity.
Teck Resources fell 68 cents to $23.69.
The gold sector was down while August bullion declined. Goldcorp Inc. faded $1.45 to $29.24. However, the sector is up about 10% so far this month as investors picked up shares in a sector that had been down as much as 50% year to date as gold prices retreated on speculation that the U.S. Federal Reserve is set to taper its bond purchases.
The energy sector dropped in price as U.S. Energy Department data showed supplies dropped by 2.8 million barrels last week, against the 2.6-million-barrel drop that had been expected. Inventories have headed sharply lower over the past four weeks, supporting a 10% rise in prices this month.
Imperial Oil gave back 60 cents to $43.34.
In other corporate developments, Bombardier Aerospace says the first flight of its new CSeries commercial jet will occur in the coming weeks, without giving a specific date. The Montreal-based company had been aiming for the first flight by the end of July. Bombardier Inc. shares lost six cents to $5.01.
ON BAYSTREET
The TSX Venture Exchange slid 5.82 points to 924.66
Eight of the 14 Toronto subgroups were down, with gold off 4.6%, materials down 3% and metals and mining stocks sliding 2.3%
The half-dozen gainers were led by information technology, up 1.6%, consumer staples, gaining 1.2%, and telecoms, which took on 0.7%.
ON WALLSTREET
U.S. stocks mostly ended in the red Wednesday afternoon, but a tech stock rally fueled by Apple's better-than-expected earnings limited the losses.
Apple one of the most widely-held stocks, often has an outsized impact on the overall tech sector as well as the broader market. Its 5% rise helped the tech-heavy NASDAQ finish just above the flat line Wednesday. A 7% jump in shares of Electronic Arts on the back of an earnings beat also helped.
The Dow Jones Industrials fell 25.50 points to close at 15,542.20, dragged down by Caterpillar, Broadcom and AT&T. All three delivered results short of Wall Street's forecasts.
The S&P 500 index moved back 6.45 points to 1,685.94. The NASDAQ improved 10.33 points to 3,579.60
Caterpillar also lowered its earnings and sales outlook for the year, which sent its stock 2.4% lower. The heavy equipment manufacturer's stock was the biggest loser in the Dow.
The drop in the Dow and S&P comes after the Dow closed at a record high Tuesday, while the S&P 500 remained near its record high. Both have gained more than 18% so far this year, as has the NASDAQ
Stocks have been grinding higher in recent days because investors took solace from mostly improved earnings. Overall, corporate earnings have been better than anticipated, although revenue growth remains modest.
More than a third of the companies in the S&P 500 have reported second-quarter results. So far, more than 65% have topped analysts' low expectations, according to S&P Capital IQ.
Aside from earnings, Dell said it has received a revised offer from founder Michael Dell, and would be holding a special meeting Aug. 2 to consider its options.
Apparel company Hanes Brands said it reached an agreement to buy Maidenform Brands in an all-cash deal worth $575 million U.S.
On the economic front, the U.S. Commerce Department said new home sales rose at an annual rate of 497,000 in June, up 8.3% from May. Economists had expected an annual rate of 483,000.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.59% from Tuesday’s 2.52%. Treasury prices and yields move in opposite directions.
Oil prices dipped $2.09 to $105.14 U.S. a barrel.
Gold settled $14.10 to $1,320.60 U.S. an ounce.
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