Stock markets closed lower Tuesday after a surprisingly weak U.S. retail sales report helped persuade investors to sell stocks.
Toronto's S&P/TSX composite index closed down 54 points to 9,231.62
Word came this morning that Denison Mines Corp. said it reached an agreement with Korea Electric Power Corp. under which KEPCO will purchase 20 per cent of Denison’s U3O8 production and acquire by private placement approximately 58 million common shares of Denison representing 19.9 per cent of the post- transaction shares outstanding, for gross proceeds of $75.4 million.
The energy sector was down as oil prices lost more ground after losing more than $2 U.S. on Monday.
The May crude contract on the New York Mercantile Exchange slipped 64 cents to $49.41 a barrel.
The Canadian dollar hit a three-month high against its U.S. counterpart, before falling 0.06 cents to 82.31 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, gainers had the upper hand on laggards seven to six. Information technology was up 1.7, followed by consumer staples, ahead 0.6%, and health-care stocks, advancing 0.3%.
Metals and mining stocks weighed heaviest on the six losing stocks, off 2.4%, followed by energy, down 2.1%, and industrials, off 1.7%.
The TSX Venture Exchange eased off 3.94 points to 976.62 while the Nasdaq Canada Index gained 2.52 points to 616.97
ON WALLSTREET
The Dow Jones Industrials average gave back 137.63 points to end the day at 7,920.18
The S&P 500 index retreated 17.23 points to 841.50, while the Nasdaq fell 27.59 to 1,625.72
Stocks have been on the rise for five straight weeks on bets that the worst for the economy and financial sector has already happened. But with consumer spending being such a big driver of the economy, a weak retail sales report caused fresh concern among investors.
In another sign the banking sector might be turning around on the heels of Wells Fargo's surprisingly strong forecast last week, New York-based Goldman's $1.66-billion U.S. profit easily beat analyst expectations.
The New York-based bank also said it will issue $5 billion U.S. in stock to help repay the $10-billion U.S. loan it received from the government last year. Hundreds of banks received funds from the government as part of the U.S. Treasury's plan to help unclog the stagnant credit markets.
Goldman announced its earnings a day earlier, releasing the results Monday after the market closed. Shares fell 9.5% Tuesday.
Drug and consumer company Johnson & Johnson reported better-than-expected first-quarter earnings of $3.5 billion U.S., or $1.26 per share, despite a year-over-year decline resulting from generic competition for Risperdal, its schizophrenia treatment. It missed revenue expectations but shares in the maker of baby shampoo, contraceptives and biotech drugs moved up 1%.
Chipmaker Intel is expected to release earnings after the close.
On the economic front, the U.S. Commerce Department reported that retail sales fell 1.1% last month, the biggest decline in three months and a much weaker showing than the 0.3% increase that analysts expected.
A big drop in auto sales led the overall slump in demand.
The government announced that the Producer Price Index, which measures the changes in selling prices for domestic producers, dipped 1.2% for March. The PPI was expected to be flat, according to a consensus of economist opinion from Briefing.com. Prices rose 0.1% in February.
The core PPI, excluding volatile food and energy prices, was unchanged for March. It was expected to have risen 0.1% in March, according to Briefing.com consensus, after rising 0.2% the prior month.
President Obama reportedly is poised to name Fannie Mae. CEO Herb Allison as head of the government's $700-billion U.S. bank rescue program. Michael Williams, Fannie chief operating officer, is expected to succeed Allison at Fannie.
Investors also took in a speech by U.S. Federal Reserve chairman Ben Bernanke, where he said there have been flickering signs that the recession may be easing including improvements in recent data on home and auto sales and home building.
Still, Bernanke made it clear that any lasting recovery hinges on the government's success in stabilizing the shaky financial system and easing credit clogs.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.78% from 2.82% Monday. Treasury prices and yields move in opposite directions.
The May crude contract on the New York Mercantile Exchange slipped 64 cents to $49.41 a barrel.
COMEX gold for June delivery fell $3.80 to settle at $892 an ounce.
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