Stocks on Bay Street traded lower Thursday -- led by a drop in energy and gold stocks as the price of oil continued to drop despite a massive production cut by OPEC and economic worries sent bank stocks lower.
The S&P/TSX composite index was down 298.76 points lower to 8,425.35.
In corporate news -- TMX Group, which operates the TSX and the junior TSX Venture Exchange, blamed its day-long halt on ''technical issues with data feeds'' and not its main Quantum trading engine.
Sun Life Financial is eyeing pieces of American International Group as the Canadian insurer sits on a war chest of funds, the Globe and Mail said on Thursday. Citing sources, the Toronto newspaper said Sun Life, Canada's No. 3 insurer, is concentrating on pieces that are being put up for grabs by AIG, which is looking for ways to repay U.S. government loans.
On the data front -- Statistics Canada reported its composite leading index fell 0.7 percent in November, its third straight retreat -- and the largest since January 1991. The decline in the forward-looking index was dominated by drops in the stock and housing markets.
Statistics Canada reported a 0.9 percent decline in October retail sales. The agency said price reductions were the key factor, and sales volumes edged up 0.1 percent from September.
Also -- Canadian investors sold a record $12.3 billion of foreign securities in October as global financial conditions on credit and equity markets rapidly deteriorated. However, foreign investors' demand for Canadian securities rebounded, reaching $2.8 billion after three straight months of divestment.
Down south -- Manufacturing in the Philadelphia region bounced off in December, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index rose to negative 32.9 in December from negative 39.3 in November.
The Canadian dollar, meanwhile, was trading down 0.93 cents to 82.93 cents US.
BAYSTREET
Only one of the TSX sub-groups traded higher today -- utility stocks were up 0.12 percent.
On the downside -- gold stocks were off 7.79 percent; energy issues dipped 7.15 percent and mining stocks slipped 6.47 percent.
Gold was down $7.90 to settle at $860.60 US an ounce.
Meanwhile, the TSX Venture Exchange was off 23.01 points to 700.45 and the NASDAQ Canada was down 20.61 points at 404.91.
ON WALLSTREET
U.S. stocks on Thursday fell for a second straight day, paced by slumping energy-related shares, after the price of crude fell to four-year lows and two of the nation's Big Three automakers said they would halt production.
The Dow Jones Industrial Average ended down 219.35 points, or 2.5 percent, at 8604.99. The S&P 500 lost 19.4 points, or 2.1 percent, at 885.28, and the Nasdaq sank 26.94 points, or 1.7 percent, to 1552.37.
Shares of General Motors Corp. were down 8.2 percent after Standard & Poor's lowered the rating outlook on the company's financial-services arm to negative from stable, citing its reliance on confidence-sensitive wholesale funding. S&P affirmed its AAA-long-term and A-1+ short-term counterparty credit ratings on GE.
FedEx Corp. shares fell 2.1 percent after it said it would freeze hiring and cut salaries to reduce costs. The Memphis, Tenn.-based shipper, a barometer for broadbased spending, said second-quarter earnings rose to $493 million, or $1.58 a share, from $479 million or $1.54 a share in the same period a year ago, but it warned of ''very difficult'' economic conditions through calendar-year 2009.
Nike posted strong second-quarter results late Wednesday. The athletic apparel company reported net income of $391 million, or 80 cents a share, up 9 percent, from the $359.4 million, or 71 cents a share, it posted a year ago.
Longer-dated U.S. Treasury securities were rising in price. The 10-year was rising 1 1.5/32 to yield 2.1 percent, and the 30-year was rising 2 17/32, yielding 2.6 percent. The American dollar was recently stronger against the euro, pound and yen.
Crude futures tumbled 10 percent to close below $37 a barrel, underscoring relentless signs of a sharp slowdown in oil demand. The price of oil has dropped almost 60 percent this year.
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