Stocks on Bay Street were trading in the red Friday afternoon -- led by a drop in tech stocks -- as the worst US retail sales report on record gave investors on both sides for the border a reason to sell.
The S&P/TSX composite index dropped 271.45 points to 9,081.14.
Media conglomerate Canwest Global Communications Corp. reported a billion-dollar quarterly loss after writing down its Canadian TV operations by $1.01 billion, which ''reflects a deterioration in the near-term profit expectations.'' Its stock declined eight cents to 72 cents, down from $7.50 a year ago.
Groupe Aeroplan Inc. says third-quarter revenue rose by more than half to $335 million but the loyalty-program operator said its net income was cut 31 percent to $35 million because of its conversion from an income trust into a taxable corporation. Its shares were down $2.14 to $9.15.
On the data front -- Statistics Canada reported today that manufacturing sales edged up 0.1 percent to $52.2 billion in September -- a much better performance than expected -- after a sizeable decrease in August.
Down south -- the Census Bureau reported that October retail sales declined a record 2.8 percent, following a 1.3 percent decline in September. Economists were expecting a 2.1 percent decrease. Excluding autos, sales slumped 2.2 percent, also a record.
The Canadian dollar, meanwhile, was trading at 81.95 cents US, down 0.59 of a cent.
BAYSTREET
All of the TSX sub-groups traded lower this afternoon -- tech stocks were down 6.57 percent followed by a 5.13 percent drop in mining issues and a 3.77 percent slump in industrial stocks.
COMEX gold for December delivery rallied $40 to $746.50 US an ounce.
Meanwhile, the TSX Venture Exchange moved down 10.07 points to 803.52 and NASDAQ Canada stocks shed 30.11 points to 415.68.
ON WALLSTREET
U.S. stocks on Friday fell for a fourth day this week, retreating after the prior session's rally, with retail sales declining a record amount in October, J.C. Penney Co. offering an outlook miss and Nokia Inc. warning of falling handset sales.
The Dow Jones Industrial Average was losing 165 points to 8670, and the S&P 500 was giving back 22 points to 889. The Nasdaq shed 46 points to 1550.
In the earnings department, Freddie Mac, the mortgage company that has been among those central to the credit crisis, announced a $25.3 billion third-quarter loss.
Beyond earnings statements, Finnish cell phone firm Nokia said it expected industry-wide sales volumes to decline as the economy weakens and currencies remain volatile.
Airplane maker Boeing, meanwhile, said it would delay production and delivery of the new versions of its 747 freighters. Separately, one of Boeing's unions called for a vote on whether to give leadership authority to call a strike.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was up 28/32 to yield 3.75 percent, and the 30-year was surging 2-2/32, yielding 4.23 percent. The American dollar was rising vs. the euro but weakening against the pound and yen.
U.S. light crude oil for December delivery fell $1.54 to $56.70 US a barrel on the New York Mercantile Exchange. Oil closed at a 21-month low on Wednesday.
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