The Toronto stock market was stuck in the red Friday afternoon as financials continued to come under selling pressure following moves to impose new regulations in the U.S. financial sector.
The S&P/TSX Composite Index ended the day down 125.67 points, or 1.1%, to 11,343.43.
The TSX financial sector was down on top of a 2% drop Thursday after U.S. President Barack Obama unveiled plans for limits on how large big banks can be. He also aims to end some of the risky trading large financial companies have used in recent quarters to boost profits.
Royal Bank gave back $1.74 to $52.96 and Sun Life Financial fell 59 cents to $31.76.
The base metals component was down sharply for the week but shed early losses to rise Friday as copper prices moved ahead six cents at $3.36 U.S. a pound. But Teck Resources was still down $1.20 to $38.54 while Equinox Minerals rose 17 cents to $3.82.
The energy sector was off but EnCana Corp. climbed 13 cents to $34.18.
The gold sector added strength, as Barrick Gold Corp. gained 31 cents to $38.62 while Goldcorp Inc. rose 24 cents to $39.06.
Enbridge Inc. said Thursday that its Alberta Clipper crude oil pipeline from Alberta to Wisconsin is set to come into service on April 1, months ahead of schedule. Its shares fell 85 cents to $46.67.
Moly Mines Ltd. shares rose four cents to 98 cents as it said that Sichuan Hanlong Group has received approval from a regulatory wing of People’s Republic of China for $200-million U.S. controlling interest investment in company.
Economically speaking, figures released this morning by Statistics Canada showed that retail sales declined 0.3% in November after rising for three consecutive months. In volume terms, sales declined 1.0%.
A contributing factor was lower winter clothing sales as a result of unseasonably warm weather throughout most of Canada
The Canadian dollar skidded 0.55 cents to 94.51 cents U.S.
ON BAYSTREET
All but one of 14 TSX subgroups ended the day lower. Global base metals were the worst off, tumbling 2.2%, while financials suffered 1.8%, and energy stocks lost 1.6% of their strength,
Gold proved the lone stalwart, forging ahead 0.7%.
The TSX Venture Exchange slid 9.24 points to 1,549.67, while the Nasdaq Canada index staggered 17.47 points to 684.74.
ON WALLSTREET
In New York, equities slumped for a third straight session Friday, on worries that the White House's bank plan and China's lending curbs will mean a broader cutback in lending. Questions also arose over whether Fed Chairman Ben Bernanke's term will be renewed.
The Dow Jones Industrials took a header of 216.90 points, or 2.1%, to close the week at 10,172.98. The S&P 500 was off 24.73 points to 1,091.75, and the Nasdaq took a pasting of 60.41 points to 2,205.79.
Wall Street saw its worst day in months on Thursday, with all three major gauges ending in negative territory for the year. It was the second big down day in a row, with major indices losing the 3% that had been gained in January.
Selling began Wednesday on reports that China has asked banks to slow the pace of lending this year in an attempt to get ahead of inflation.
In the wake of the credit crisis, the government is looking to limit the ability of commercial banks to make high-risk trades and stop them from owning or investing in hedge funds.
If such a policy is enacted, it would separate commercial and investment banks in a throwback to a Depression-era law that has been out of use for a decade.
Large banks such as JPMorgan Chase, Goldman Sachs and Bank of America would feel the brunt of the impact. All three slipped Friday.
But a few of the regional banks, including Fifth Third Bancorp and SunTrust Banks bucked the trend for a second straight session.
Federal Reserve Chairman Ben Bernanke's term ends in a week, but the Senate lacks the 60 votes to force a confirmation vote. As more Democratic senators say they plan to vote against giving the Fed chief a second term, White House and Senate leaders are starting to scramble for the needed support.
General Electric reported weaker revenue and earnings versus a year ago that nonetheless beat analysts' estimates. GE also reported higher sales and profit versus the previous quarter, with the exception of its struggling NBC Universal unit.
Looking forward, GE said it sees solid growth next year. Shares rose 2.6%.
Fellow Dow component McDonald's reported higher quarterly sales and earnings that topped estimates, with strength in international markets offsetting any weakness in its U.S. business. Shares rose modestly.
After the close Thursday, American Express reported higher earnings that beat forecasts on flat revenue that also beat estimates. Nonetheless, shares of the financial services firm lost 5% in Friday trading.
Also after the close Thursday, Google reported a big jump in revenue that topped estimates thanks to a rebound in the advertising market. However, shares lost 3% Friday morning.
Economically speaking, a report showed that December jobless rates rose in 43 states and the District of Columbia versus the previous month. The trend marked a reversal from November, when a majority of the states saw unemployment rates dip from the prior month.
Treasury prices inched up, correspondingly lowering the yield on the 10-year note to 3.59% from Thursday’s 3.61%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped $1.83 to $74.25 U.S.
Gold prices fell $11 to $1,092 U.S.
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