Stocks on Bay Street traded lower Wednesday -- as investors fled to the sidelines following a six-session winning streak -- after a pair of weak readings on U.S. employment raised the alarm ahead of Friday's bigger national labor market report.
The S&P/TSX composite index was down 350.77 points to 9,121.32.
On the corporate front -- Enterra Energy Trust says it may limit capital spending due to falling commodity prices. Its units were off three cents to 85 cents as the company said it is looking for alternative investment opportunities besides a conventional drilling program.
Major air carriers WestJet and Air Canada had fewer empty seats in December despite economic hurdles and weather related challenges.
Calgary-based WestJet reported a load factor of 80.9 percent for the month, up 1.6 percentage points from 79.3 in December 2007 as the airline increased capacity 10.6 percent.
Air Canada reported a load factor of 81.7 percent, up 2.9 percentage points from the same month a year earlier as it cut capacity 9.9 percent, dropping system traffic by 6.6 percent.
Shares of Rogers Communications Inc. fell after an analyst downgraded the stock following the release of weaker-than-expected cable-TV subscriber results. David Lambert, an analyst at Canaccord Adams, cut his rating on the shares to ''hold'' from ''buy'' and reduced his 12-month target to $35 from $38.
On the data front -- the ADP employment index released ahead of the opening bell had private-sector U.S. firms shedding 693,000 jobs in December, with the tally proving far worse than expected and prompting quick hang-wringing about Friday's employment report.
The Canadian dollar, meanwhile, traded 0.003 cents higher at 83.66 cents US.
BAYSTREET
All of the TSX sub-groups traded in the red today -- mining stocks were off 9.49 percent followed by a 7.28 percent drop in gold issues and a 6.14 percent slide in energy stocks.
Gold for February delivery declined $24.30, or 2.8 percent, to end at $841.7 US an ounce.
Meanwhile, the TSX Venture Exchange was off 24.79 points to 888.32 and the NASDAQ Canada was down 5.56 points at 480.63.
ON WALLSTREET
Stocks thudded lower on Wednesday, with the Dow dropping the most since Dec. 1, as investors confronted more evidence of a deteriorating labor market and downbeat news from metals giant Alcoa Corp. and technology bellwether Intel Corp.
The Dow Jones Industrial Average tumbled 244.84 points, or 2.7 percent, to 8770.26, and the S&P 500 fell 28.01, or 3 percent, to 906.69. The Nasdaq sank 53.32 points, or 3.2 percent, to 1599.06.
Alcoa proved the heaviest weight on the blue-chip index, its shares down 6.8 percent after the aluminum giant's announcement late Tuesday that it would cut 13,500 jobs and close plants to conserve cash.
Shares of Intel also dragged on the Dow, its shares off 5 percent after the chipmaker warned it expects its fourth-quarter revenue to fall 23 percent from a year ago to $8.2 billion.
Media giant Time Warner said Wednesday that it expects to report a net loss for 2008 on Feb. 4, after prior expectations for a gain. The company said legal and lease-restructuring charges, in addition to the challenging economic environment were to blame.
The 10-year note was giving up 9/32 to yield 2.5 percent, and the 30-year note was down 1 06/32, yielding 3.1 percent. The American dollar was weaker against the euro, pound and yen.
On the New York Mercantile Exchange, oil tumbled 12 percent, marking its biggest one-day percentage drop in more than seven years. Crude for February delivery fell 12 percent to end at $42.63 a barrel after weekly data showing U.S. inventories climbed more than expected.
Crude-oil futures widened their losses Wednesday after data showed U.S. crude inventories rose more than expected. Stockpiles gained 6.7 million barrels to 325.4 million in the week ended Jan. 2, the U.S. Energy Information Administration reported. Analysts surveyed by energy information provider Platts had expected a buildup of 1.5 million barrels.
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