The S&P/TSX composite index traded deep in the red today -- down 681.83 points to 9,323.83 -- led by a drop in energy stocks -- as traders took in a broad array of gloomy economic data and a big drop in oil prices.
In corporate news -- EnCana Corp. announced it will indefinitely delay its plan to split into two independent energy companies because of uncertainty and volatility in global financial markets.
CI Financial Income Fund announced it will convert from an income trust back into a corporation ''to pursue the growth opportunities that are available as a result of the current extraordinary economic and market conditions.''
On the US data front -- the Census Bureau reported that retail sales were 1.2 percent lower in September, worse than a 0.4 percent decline in August. Economists had anticipated a drop of 0.7 percent. The decline in retail sales was the largest the U.S. has seen in three years. Excluding autos, the number fell 0.6 percent, a narrower decline than the 0.9 percent drop in August.
Also -- the Bureau of Labor Statistics said that, as expected, its producer price index declined 0.4 percent in September, compared with a 0.9 percent decrease in August. However, the core reading, which subtracts food and energy, saw a 0.4 percent uptick, more than the 0.2 percent consensus estimate and up from 0.2 percent in August.
The New York Fed's manufacturing index for October fell to a record low of -24.6, down from -7.4 in September and much lower than -10 in August.
The Canadian dollar, meanwhile was trading down 1.82 cent to 84.17 cents US.
BAYSTREET
Only one of the TSX sub-groups traded higher today -- consumer staples issues were up 1.36 percent.
On the downside -- energy stocks fell 11.81 percent, mining issues shed 7.95 percent and real-estate stocks dipped 7.69 percent.
COMEX gold for December delivery fell 50 cents to settle at $839 US an ounce.
Meanwhile, the TSX Venture Exchange slipped 63.49 points to 991.21 while NASDAQ Canada stocks were off 45.18 points at 546.98.
ON WALLSTREET
After bearing numerous hits in the past few weeks, stocks on Wall Street took another drubbing as a matter of course Wednesday. Bearish economic data, slumping earnings from financial firms and new comments from Federal Reserve Chairman Ben Bernanke held the spotlight as traders steadily sold off, a trend reflected in the major indices.
The Dow Jones Industrial Average dropped 733.08 points, or 7.9 percent, to 8577.91, and the S&P 500 sank 90.17 points, or 9 percent, to 907.84. The Nasdaq lost 150.68 points, or 8.5 percent, to 1628.33.
Bernanke addressed the financial crisis in a speech before the Economic Club of New York Wednesday afternoon. Bernanke said a ''loss of confidence by investors and the public in the strength of key financial institutions and markets'' lies at the heart of the problem and that's why the government acted preemptively.
''The crisis will end when comprehensive responses by political and financial leaders restore that trust, bringing investors back into the market and allowing the normal business of extending credit to households and firms to resume,'' Bernanke said. ''I am not suggesting the way forward will be easy, but I strongly believe that we now have the tools we need to respond with the necessary force to these challenges.''
Several financial firms released quarterly results, many of which illustrated the deleterious impact of the credit crisis. JPMorgan Chase reported third-quarter profit that slid 84 percent year over year but nonetheless topped analysts' estimates. The decline in earnings came as JPMorgan saw $3.6 billion in asset writedowns and $640 million in losses related to its purchase of Washington Mutual.
Similarly, Wells Fargo said its earnings slid 25 percent year over year, but the bank beat analyst expectations.
Beverage firm Coca-Cola said its profit increased 14% year over year and trumped the Street's expectations. Shares added 1.1 percent to $44.21.
Prices of longer-dated U.S. Treasury securities were rising. The 10-year note was up 20/32 to yield 4 percent, and the 30-year was adding 16/32, yielding 4.25 percent. The American dollar was rising vs. the euro and pound but weakening against the yen.
In commodities, crude oil lost $4.09 to settle at $74.64 US a barrel, as OPEC cut its demand forecast for global oil demand for 2008 and 2009.
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