The Toronto stock market was lower on the last trading day of July as losses in mining stocks helped eclipse early gains on positive earnings news and the U.S. Federal Reserve offered no clues as to when it might start to wind down a key bit of stimulus.
The S&P/TSX Composite Index plummeted 95.11 points to close Wednesday at 12,486.64
The Canadian dollar regained 0.32 cents to 97.35 cents U.S. as the Canadian economy performed weaker than expected during May. Statistics Canada reported gross domestic product grew by 0.2%. Economists had looked for a 0.3% rise from April.
Among gold plays, Barrick Gold Corp. gave back 72 cents to $17.00.
The base metals sector fell while September copper rose eight cents to $3.12 U.S., more than making up for Tuesday's seven-cent drop. Teck Resources fell 33 cents to $24.06.
The telecom sector was also a major decliner with Rogers Communications down 85 cents to $41.04.
Financials were off as Manulife Financial lost nine cents to $18.09.
Intact Financial Corp. exceeded analyst estimates following several recent catastrophes that will result in millions of dollars of payouts by the insurance company.
The company had 89 cents per share of net operating income, down from $1.35 a year earlier but 16 cents a share better than anticipated and its shares ran up $1.67 to $60.41
The information technology sector gained as CGI Group Inc. posted a profit of $178.2 million or 56 cents per share for the third quarter, up from $87.2 billion or 33 cents per share last year.
Revenue was up to $2.57 billion from $1.06 billion and its shares jumped $3.17, or 9.8%, to $35.50.
In the energy sector, Canadian Natural Resources improved by 17 cents to $31.83.
Talisman Energy reported a $27-million loss from operations, or three cents per share, in the quarter, down from a year earlier profit of $71 million or seven cents per share. Analysts polled by Thomson Reuters had recently lowered their estimates for Talisman to less than a cent per share of adjusted earnings.
Talisman also revised its 2013 production guidance to the lower end of estimates and its shares fell 30 cents to $11.64.
The TSX is ending July trading with a gain of about 3.7% on the month, leaving the Toronto market up 1.2% year to date. Gains during July were paced by a gain of 4.5% in the energy sector as oil prices firmed above $100 U.S. a barrel amid a series of sharp inventory drops in the U.S.
ON BAYSTREET
The TSX Venture Exchange remained positive 2.93 points to 917.34
All but two of the 14 Toronto subgroups were lower, as materials slumped 2.5%, while metals and mining group gave back 1.5%, and real-estate slid 1.2%.
The two laggards were information technology, surging 3.9%, while health-care issues were 0.4% haler.
ON WALLSTREET
U.S. stocks wrapped up a buoyant July, with all three indexes gaining between 4% and 7%.
Yet, the last day of the month was less than stellar. Stocks wobbled a bit Wednesday, after the U.S. Federal Reserve left its bond buying program unchanged.
The Dow Jones Industrials gave up early momentum and actually lost 21.05 points to 15,499.50, after hitting an intraday high early in the session.
The S&P 500 index dropped 0.23 points to 1,685.73. The NASDAQ added 9.90 points to 3,626.37
More than a year after its much-hyped initial public offering, Facebook's stock finally exceeded its IPO price, albeit briefly.
After it topped $38 U.S. early Wednesday, Facebook's stock ended down more than 2%. Still, Facebook's stock is up nearly 40% since it reported strong earnings last week.
Herbalife, arguably the most beloved/reviled stock among hedge fund managers got another boost Wednesday after CNBC reported that George Soros' fund had taken a sizeable stake in the nutritional supplement company. Herbalife's stock had spiked Tuesday after better-than-expected earnings.
Other stocks rallying on earnings and revenue beats included Comcast and MasterCard
Shares of industrial gas producer Air Products rose after hedge fund manager Bill Ackman disclosed a 9.8% stake in the company.
It was also a beverage bonanza Wednesday with both Diageo, the maker of Johnnie Walker and Guinness, and the maker of the "king of beers" Anheuser Busch beating the Street's expectations.
Economically speaking, the U.S. government's first estimate of second-quarter GDP showed the economy grew at a 1.7% annual rate. That was an improvement over the first quarter, which grew at a 1.1% annual rate.
Ahead of the GDP figures, payroll processor ADP said the private sector added 200,000 jobs in July, flying high about expectations.
That could spell big gains for the key monthly jobs report, due out Friday. The ADP report is usually seen as a precursor to the government's numbers.
At the conclusion of its two-day meeting, the central bank said that the economy appears to be improving, noting that "downside risks" have diminished since last fall. At the same time, the Fed said it would continue its monthly bond purchases to "support a stronger economic recovery."
The Fed's stimulus program has been a big driver of the current bull market. Year-to-date, stocks are up 19%, and a pair of better-than-expected economic reports Wednesday kept tapering fears at bay.
Prices for the 10-year U.S. Treasury strengthened late afternoon, lowering yields to 2.59% from Tuesday’s 2.60%. Treasury prices and yields move in opposite directions.
Oil prices acquired $2.05 to $105.13 U.S. a barrel.
Gold prices sank $2.40 to $1,321.60 U.S. an ounce.
Related Stories
