The Toronto stock market remained in the red Tuesday afternoon following weak consumer confidence reports from both sides of the border and big declines in commodity prices.
The S&P TSX Composite Index closed down 29.38 points to 11,716.69
The drop followed a report that Americans' confidence in the economy eroded further in July amid job worries. The reading raises concern about the U.S. recovery, which is seen as a major driver of growth for Canadian exports.
Among gold stocks, shares in Barrick Gold Corp. were down $1.67 or 3.9% at $41.45.
The Toronto energy sector lost ground, as shares in Suncor Energy Inc. lost 17 cents to $33.51.
The base metals sector also suffered as the September copper contract lost 1.65 cents to $3.21 U.S. a pound. Shares in HudBay Minerals Inc. were down eight cents to $12.88.
Financial stocks helped to offset the declines in other sectors Shares in Toronto-Dominion Bank gained 79 cents to $73.71.
In Canadian corporate news, the board of Tomkins PLC has given its blessing to a $4.5-billion takeover offer from Onex Corp. and the Canada Pension Plan Investment Board, which have teamed up to buy the U.K.-based global manufacturing company. Shares in Onex gained 16 cents to $27.36.
Rogers Communications Inc. increased both profit and revenue in the second quarter. However, the company said increased competition resulted in fewer net subscriber additions to its wireless services compared with last year and it didn't raise its guidance for the year. Shares in Rogers fell 65 cents to $36.75.
Talisman Energy Inc. reported a big jump in second-quarter net income, to $603 million compared with $63 million a year earlier. Shares in Talisman gained 43 cents to $17.52.
Currency fluctuations had a negative impact on third-quarter revenue at CGI Group Inc., but its profit was up 12% from a year earlier to $85.9 million. Shares in CGI lost 75 cents or 4.6% to $15.48.
Shares in Northstar Healthcare Inc. fell 28 cents or 31.1% to 62 cents after a company headed by a former chief executive dropped its takeover offer due to a "material adverse change" in the ambulatory surgery provider's financial condition.
And Inmet Mining Corp. says said exchange losses pulled second-quarter profits down 27% to $48.4 million, while revenue rose slightly. Inmet's stock slipped 46 cents to $48.79.
On the economic front, consumer confidence in Canada fell for a second straight month in July. The Conference Board of Canada said its consumer confidence index fell 3.7 points to a reading of 80 in July.
The Canadian dollar had turned 0.30 cents lower to 96.54 cents U.S.
ON BAYSTREET
All but four of the 14 TSX subgroups were lower. Gold sank 2.7%, while materials doffed 2.2% and information technology shed 2.1% of its strength.
The top three of the four gaining groups were financials, up 1.6%, health-care, gaining 0.6% and utilities, prospering 0.5%.
The TSX Venture Exchange skidded 7.18 points to 1,396.28 while the Nasdaq Canada index shed 19.03 points at 626.05
ON WALLSTREET
In New York, stocks churned Tuesday, losing steam after a three-session run, after a big drop in consumer confidence offset better-than-expected profit growth from DuPont, UBS and others.
The Dow Jones industrial average fought its way into the green by 12.26 points, to finish at 10,537.69
The S&P 500 index fell back 1.17 points, however, to 1,113.84. The Nasdaq composite index was negative by 8.18 points to 2,288.25
Stocks gained Monday after FedEx lifted its profit forecast and new home sales grew more than expected in June. The advance built on last week's rally, pushing the Dow into positive territory for the year, along with the Nasdaq. The S&P 500 moved into positive territory for the year on Tuesday morning, before retreating.
Dow component DuPont reported higher quarterly sales and earnings that topped estimates, thanks to higher prices and increased demand. The chemical maker also boosted its earnings forecast for the year. Shares gained 4%.
Swiss bank UBS reported higher quarterly profit that topped estimates, thanks to the stock market rally and currency trading gains. U.S.-traded shares gained 8.8%.
Swiss rival Credit Suisse also reported a better-than-expected profit as tax and accounting gains tempered the impact of investment banking losses. Shares gained 4%.
German competitor Deutsche Bank reported higher quarterly earnings. But revenue was weaker due to a decline in its investment banking profit. Shares gained 2.8%.
Tellabs reported higher quarterly sales and earnings that beat estimates and lifted its fiscal second-quarter outlook. But shares of the communications gear maker dropped on concerns that it will lose some of its business building wireless networks for AT&T to a rival vendor. Shares fell 5%.
With just over one-third of the S&P 500 having reported, Earnings are currently on track to have risen 34% from a year ago, according to earnings tracker Thomson Reuters.
BP posted a huge quarterly loss of $17.2 billion U.S. due to costs connected to the Gulf of Mexico oil spill. The company also said that British CEO Tony Hayward will be replaced by American Robert Dudley Oct. 1. BP shares fell 2%.
Economically speaking, consumer confidence fell to 50.4 in July from an upwardly revised 54.3 in June. Economists surveyed by Briefing.com thought it would fall to 51.0. The report served to underscore the weak outlook for consumer spending heading into the fall, and caused stocks to erase early gains.
Better-than-expected results from a number of companies had propelled markets in the morning, extending the recent rally. But that advance lost steam, with technology and consumer stocks hit the most.
Elsewhere, the Case-Shiller 20-city home price index rose 1.3% in May versus April and up 4.6% from a year earlier, suggesting pricing has stabilized.
Treasury prices faltered, as yields on the 10-year note jumped to 3.05% from Friday’s 2.99%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil was down $1.51 to $77.47 U.S.
Gold prices collapsed $23 to $1,164 U.S. an ounce.
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