Resource stocks weighed on the Toronto stock market Wednesday as oil prices retreated amid mixed signs of energy demand in the U.S. while metal prices declined on worries about a slowing of the Chinese economy.
The S&P/TSX Composite Index jettisoned 222.32 points, or 1.6%, to close at 13,419.74
The Canadian dollar had settled back 0.44 cents to 104.06 cents U.S.
Suncor Energy lost $1.27 to $39.31 while Canadian Natural Resources fell $1.11 to $40.24.
The TSX base metals sector lost ground with Teck Resources down $2.63 to $45.50 and Taseko Mines lost 20 cents to $4.82.
The gold sector was down amid falling bullion prices. Barrick Gold Corp. faded $1.77 to $43.82
Apparel manufacturer Gildan Activewear Inc. said higher prices and sales helped it post record earnings in its fiscal 2011 second quarter, easily beating analyst expectations. Gildan, which reports in U.S. dollars, said net earnings were $61.4 million, or 50 cents per share while revenues soared 17.3% to $383.2 million. Its shares dropped 93 cents to $35.21.
In the resource sector, oil and gas pipeline company Enbridge Inc. reported that quarterly profits rose 15% to $393 million, up from $342 million a year ago. On an adjusted basis, profits were up five per cent to $334 million, or 89 cents per share, which beat analyst expectations by two cents and its shares lost 75 cents to $60.20.
Uranium One Inc., one of the world’s largest publicly traded uranium producers, said first-quarter profits rose to $14 million, turning around a loss of $1.4 million a year ago. Adjusted profits were $14.7 million or two cents per share, below analyst predictions of five cents.
Revenues jumped to $101.9 million from $35.5 million and its shares settled 13 cents to $3.95.
Lundin Mining Corp. shares slipped 12 cents to $8.77 as the company warned of higher costs Tuesday while reporting a first-quarter profit up nearly 40% from a year ago to $71.2 million U.S. Revenue at Lundin, which keeps its books in U.S. dollars, totaled $211.5 million, up from $141.7 million.
Shares in Ivanhoe Energy Inc. were off 14 cents to $2.33 reported a first-quarter net loss of $11.1 million U.S. or three cents per share, compared with a net loss of $6.8 million U.S. or two cents in the same 2010 quarter. Revenues were $8.2 million U.S, up from $5.3 million.
And Yamana Gold Inc. said Tuesday it will increase its annual dividend rate by 50% to 18 cents per share annually, starting with the third quarter. Shares inched up two cents to $11.40
On the economic front, Statistics Canada reported this morning that Canada's trade surplus increased from $356 million in February to $627 million in March, as both merchandise imports and exports rose during the month.
ON BAYSTREET
The TSX Venture Exchange dumped 55.81 points to 2,070.27 while the Nasdaq Canada index slumped 18.24 points to 669.06
In Toronto, all of the 14 subgroups surrendered ground by midday. Metals and mining stocks collapsed 3.7%, global base metals slid 3.5%, and materials were 3.3% to the bad.
ON WALLSTREET
In New York, equities fell sharply Wednesday, as energy and materials stocks were particularly hit hard by a selloff in oil and gasoline futures.
The Dow Jones industrial average fell 130.33 points, or 1%, by the closing bell to 12,630.03
The S&P 500 lost 15.08 points to 1,342.08. The Nasdaq Composite Index dropped 26.83 points to 2,845.06
Shares of Chevron and Exxon Mobil were among the biggest laggards on the Dow as oil plunged nearly 6% to fall below $100 U.S. a barrel. Gasoline futures also got hammered, tumbling 8% to $3.11 U.S. a gallon.
The selling intensified after the Energy Department's weekly inventory report showed a surprise build in gasoline supplies.
The drop in energy prices also drove down shares of energy firms Halliburton, Cabot Oil and Tesoro, among others.
Copper was also getting caught up in the selling mayhem, with copper prices sinking 3.5%. That spilled over to miner stocks, including Freeport McMoRan and Teck Resources
One of the lone bright spots was Intel, whose shares rose 1.7% after the chipmaker hiked its quarterly dividend to 21 cents U.S. a share.
Investors moved into defensive sectors such as consumer staples, utilities and health care stocks. Both utilities and health care have been particularly strong performers as of late, a sign that investors are becoming increasingly hesitant.
Shares of Dow component Walt Disney dropped more than 5% after the company reported earnings that fell far short of forecasts.
Yahoo! shares dropped more than 7%, making it the worst performer in the S&P 500, after the Internet portal issued a regulatory filing that raised concerns about Yahoo!'s valuable China-based assets.
Automaker Toyota said Tuesday that net income almost doubled and sales increased 0.2% for the fiscal year ended March 31. But the earthquake that hit Japan earlier this year cost the company about ¥100 billion.
Also, insurer AIG and the Treasury decided to move ahead with a $9-billion U.S. stock offering, despite the recent low price of the stock. Shares of AIG rose 3.6%.
Department store chain Macy's posted a profit of 30 cents U.S. a share, well ahead of the 17 cents U.S. that analysts were looking for. The company also announced it was doubling its quarterly dividend to 10 cents U.S. per share. Macy's shares jumped 8%, making it the best performer on the S&P 500.
Dow component Cisco Systems reported earnings per share that topped analysts' forecast after the closing bell.
On the economic front, the U.S. trade deficit widened to $48.2 billion U.S. in March, the Commerce Department said Wednesday. Economists were expecting a $47.7-billion U.S. trade deficit.
The price on the benchmark 10-year U.S. Treasury gained strength, lowering yields to 3.16% from Tuesday’s 3.20%. Treasury prices and yields move in opposite directions.
Oil for June delivery faded $4.86 to $99.03 U.S. a barrel.
Precious metals were also selling off, with silver sinking $3.26, or 8.5%, to $32.22 U.S. an ounce.
And gold fell $13.40, or 0.9%, to $1,503.50 U.S. an ounce.
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