Stocks on Bay Street traded lower today -- led by a drop in financial stocks -- as significant job cuts at major US financial firms and weakening earnings outlooks weighed on investors.
The S&P/TSX composite index dropped 260.51 points to 8,795.45.
Petro-Canada said Fort Hills Energy L.P. would defer the final investment decision on the mining portion of the Fort Hills project until 2009 as they seek to set a cost estimate consistent with current market conditions.
Japan became the latest major economy to fall into recession on Monday with France close behind, and the IMF said it needed at least $100 billion to fight an economic crisis enveloping the world.
Also -- Over the weekend, members of the Group of 20 finance ministers convened in Washington to try to prevent further economic decline. The meeting resulted in a decision not to raise barriers to trade for 2009, to delegate additional money to the International Monetary Fund and to set up regulatory bodies to detect risky investment.
In earnings -- Canadian Superior Energy Inc. has reported a third-quarter net loss of $2.1 million as oil and gas sales doubled from a year earlier to $20.5 million and capital spending also doubled, to $39.5 million. The quarter's net loss was a penny per share, compared with a loss of $2.9 million or 2 cents per share in the year-ago quarter, when sales were $10.2 million.
As for economic data -- New York's November Empire State index registered at negative 25.43, down from negative 24.62 a month ago. Economists were expecting a look of negative 26.10.
A poll by the National Association of Business Economists showed that respondents believe the U.S. has entered a recession and that the unemployment rate will hit 7.5 percent.
The Canadian dollar, meanwhile, was trading at 81.18 down .021 cents from Friday's close.
BAYSTREET
Two of the TSX sub-groups traded higher today -- consumer staples stocks were up 0.60 percent and utility issues were ahead 0.34 percent.
On the downside -- financial stocks were down 3.84 percent followed by a 3.74 percent drop in consumer discretionary issues and a 3.54 percent slump in real-estate stocks.
Gold dropped 50 cents to close at $742.50 US an ounce.
Meanwhile, the TSX Venture Exchange moved down 15.82 points to 785.79 and NASDAQ Canada stocks rose 14.13 points to 429.04.
ON WALLSTREET
U.S. stocks started the week solidly at a loss Monday, with word of Citigroup Inc. slashing 50,000 jobs and Japan slipping into recession heightening worries about the severity of the global slowdown.
The Dow Jones Industrial Average lost 223.73 points, or 2.6 percent, to 8273.58, and the S&P 500 sank 22.54 points, or 2.6 percent, to 850.75. The Nasdaq shed 34.80 points, or 2.3 percent, to 1482.05.
Shares of Citigroup Inc. declined 6.6 percent after the bank said it would cut about 50,000 jobs in the latest and most dramatic round of layoffs in the battered financial sector.
In the automotive sector, General Motors was getting ready to sell its 3 percent stake in Suzuki Motor for $230 million. Shares gained 5.7 percent to $3.18.
Looking at corporate earnings, hardware store operator Lowe's saw profit decline year over year and cut its full-year earnings guidance, and shares climbed 4.2 percent to $18.99. Fellow retailer Target also announced reduced quarterly profit and suspended its share-buyback program. The stock slid 4.1 percent to $31.68.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was adding 14/32 to yield 3.68 percent, and the 30-year was gaining 13/32, yielding 4.2 percent. The American dollar was rising vs. the euro but weakening against the yen and pound.
On the New York Mercantile Exchange, crude futures for December delivery fell $2.09 to close at $54.95 US a barrel.
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