Stocks in Toronto closed deep in the red Wednesday -- with the S&P/TSX composite index sinking 558.92 points to 9,236.88 -- as corporate earnings again took center stage while slumping oil prices amplified fears of a global recession.
In corporate news -- George Weston Ltd. has sold its Neilson Dairy business to Saputo Inc. Canada's largest dairy processor, for $465 million. Weston shares declined 51 cents to $54.46 while Saputo dipped 1 cent to $25.43.
North American trucker Vitran Corp. Inc. reported a 15 percent rise in third-quarter revenue to US$198.6 million. But the Montreal-based company's earnings pulled back by $1 million to $2.1 million amid ''the economic slowdown and significant industry pricing pressures.''
Husky Energy said after the bell on Tuesday that its profit jumped 65 percent as oil prices hit a record before the global financial meltdown prompted a major pullback. It also did not give hints of spending plans for next year but did not claw back this year's spending.
On the data front -- Retail sales in Canada fell 0.3 percent in August to $35.9 billion. A 1.8 percent sales decline in the automotive sector more than offset higher sales in five of the industry's seven other sectors. Excluding the entire automotive sector, retail sales in the other seven sectors combined rose 0.4 percent.
Also -- the composite leading index dipped 0.2 percent in September, after a 0.3 percent gain in August capped a string of five straight increases.
The Canadian dollar, meanwhile, was trading down to 79.85 cents US, after dropping 1.38 cents yesterday.
BAYSTREET
All of the TSX sub-groups traded lower today -- gold issues fell 14.49 percent; mining stocks dipped 10.57 percent and energy issues shed 9.11 percent.
COMEX gold for December delivery fell $24.10 to $743.90 US an ounce.
Meanwhile, the TSX Venture Exchange was off 68.76 points to 900.63 while NASDAQ Canada stocks were of 23.06 points at 585.46.
ON WALLSTREET
U.S. stocks were pummeled again on Wednesday, as fears of a global recession sparked widespread selling of equities as well as commodities, with the Dow Jones Industrial Average tallying its 7th-largest point drop on record.
The Dow Jones Industrial Average dropped 514.45 points, or 5.7 percent, to 8519.21, and the S&P 500 lost 58.26 points, or 6.1 percent, to 896.79. The Nasdaq stumbled 80.83 points, or 4.8 percent, to 1615.75. Every one of the Dow's 30 component stocks registered a loss.
Traders were sifting through a fresh pile of earnings statements. Telecommunications service provider AT&T announced that profit grew 5.5 percent year over year but fell short of analysts' expectations.
On the industrial side -- aircraft maker Boeing saw income shrink 38 percent year over year, while rival Northrop Grumman reported increasing net income and raised guidance.
In the energy patch, oil-services company Baker Hughes said its profit increased 10 percent year over year, while integrated oil firm ConocoPhillips delivered an earnings beat on increasing revenue.
As for financial results -- Wachovia reported a huge $24 billion quarterly loss versus a profit a year ago. Analysts expected the bank to report a slim profit, despite the turmoil in financial markets. Wachovia is being bought by Wells Fargo and part of the big loss was related to charges associated with that merger. Shares dropped 4 percent.
Internet portal Yahoo! announced third-quarter earnings, saying profit declined 64 percent. The company also said it would cut at least 1,500 jobs this year.
Longer-dated U.S. Treasury securities were rising in price. The 10-year note was up 1-3/32, yielding 3.61 percent. The 30-year was gaining 2-15/32 to yield 4.08 percent. The American dollar was logging massive gains vs. the euro and pound but weaker against the yen. The dollar index, which measures the dollar against a basket of rival currencies, was surging 1.8 percent to 85.51.
U.S. light crude oil for November delivery settled down $5.43 to $66.75 US a barrel on the New York Mercantile Exchange, a 16-month low.
The Energy Information Administration said domestic commercial supplies of crude rose to 311.4 million barrels in the week to Oct. 17, up 3.2 million from the previous week and above analysts' expectations for a rise of 2.6 million.
Stockpiles of gasoline increased by 2.7 million barrels to 196.5 million barrels last week, EIA said, very near analysts' projections for a gain of 2.8 million barrels. Supplies rose for the fourth straight week.
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