The Toronto stock market was sharply lower Wednesday as investors remained focused on whether the U.S. Federal Reserve could move as soon as next week on clawing back its stimulus.
The S&P/TSX composite index plummeted 190.59 points, or 1.4%, to end the session at 13,133.42
The Canadian dollar improved 0.14 cents to 94.45 cents U.S.
Hudson's Bay Co. reported a larger net loss in its latest quarter, mostly due to costs related to its acquisition of U.S. retailer Saks Inc. last month.
The retailer – one of the country’s oldest companies -- reported a net loss of $124.2 million, or $1.04 per share, compared with $14.4 million, or 14 cents per share, a year earlier. Overall retail sales rose by 5.8%. Ex-items, earnings were seven cents a share, which missed estimates by three cents and its shares fell $1.19, or nearly 6%, to $18.80.
Telecoms in particular took a beating, with Rogers Communications down 91 cents to $47.68.
The energy sector fell as Canadian Natural Resources declined 47 cents to $34.49.
Natural gas giant Encana Corp. plans to increase its production of natural gas liquids by 30% next year, as it focuses spending in five resource areas across North America. Encana does not expect its forecast production levels to change from last year, even though it plans on cutting its capital investment by 10%.
Last month, it announced it was slashing its workforce by 20%, cutting its dividend and spinning off a large chunk of its Alberta land holdings into a new public company. EnCana shares shed $1.21, or 5.9%, to $19.17.
The industrials group was down as Canadian Pacific Railway lost $2.28 to $158.81.
Financials weighed as Laurentian Bank missed expectations. Restructuring costs caused its quarterly net profit to plummet 41% to $27.7 million in the fourth quarter.
Adjusting for one-time items, net income dipped 3% to $35.2 million or $1.14 a share, lower than the $1.31 that analysts expected. Revenue of $215.5 million missed expectations of $220.5 million and Laurentian shares gave back $2.19, or 4.6%, to $44.98.
The gold component shed some of its strength while Barrick Gold faded 62 cents to $17.29.
March copper was up one cent at $3.28 U.S. a pound and the base metals sector gave back strength. Teck Resources lost 88 cents, or 3.4%, to $24.67.
ON BAYSTREET
The TSX Venture Exchange skidded 6.96 points to 897.03
All 14 subgroups were lower on the day. Gold was off 3.8%, materials ditched 2.4% and global base metals doffed 2.2%.
ON WALLSTREET
Stocks fell hard Wednesday, as investors reckoned that a new U.S. budget deal increases the chances that the Federal Reserve might start to scale back its support for the economy soon.
The Dow Jones Industrials shed 129.60 points to 15,843.53
The S&P 500 index dropped 20.40 points to 1,782.22. The NASDAQ retreated 56.68 points to 4,003.81
Shares of Twitter edged slightly higher in late afternoon trading. The stock hit an all-time high of $53.87 U.S. earlier in the day. Twitter has more than doubled from its IPO price
BlackBerry shares rose for a second straight day. The troubled smartphone maker has been punished this year, with shares down nearly 50%. BlackBerry is set to report quarterly results next week, and some traders are crossing their fingers for good news.
Pandora shares sank after rival online radio service Spotify expanded its free streaming option for mobile devices.
Shares of MasterCard rose after the company said it would increase its quarterly dividend by 83% and announced a share buyback program. The company also announced a 10-for-one stock split effective in January.
Smith & Wesson shares jumped a day after the gun maker reported quarterly earnings that beat expectations.
Groupon shares rose following positive reports from Wall Street analysts.
Costco shares dropped after the company reported quarterly profits that fell just short of analysts' expectations.
Bank stocks were under pressure one day after federal regulators officially approved new restrictions on risky trading by federally-insured financial institutions. Goldman Sachs fell more than 1%. Morgan Stanley, Citibank, Bank of America and JPMorgan also dipped.
Congressional negotiators reached a bipartisan budget compromise late Tuesday that would prevent another government shutdown, if approved by the House and Senate. The deal would set spending levels, reduce the deficit and relieve some of the arbitrary, forced spending cuts.
Some analysts say the deal could make the Fed more likely to announce it will begin trimming its $85-billion-U.S.-a month bond purchases as early as next week. Fed chairman Ben Bernanke has said repeatedly that uncertainty about fiscal policy is a threat to the economy.
Prices for 10-year U.S. Treasuries stepped backward, raising yields to 2.84% from Tuesday’s 2.80%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.12 to $97.39 U.S. a barrel.
Gold prices shrank $7.60 to $1,253.50 U.S. an ounce.
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