The Toronto stock market was down on the day Thursday, as traders mulled over what the U.S. Federal Reserve is prepared to do to help the economic recovery while commodity prices gave up early gains.
The S&P/TSX Composite Index ended Thursday’s trading off 72.02 points to 13,252.92
The Canadian dollar was down 0.18 cents at 104.14 cents U.S.
U.S. Federal Reserve chairman Ben Bernanke had said Wednesday he is considering another round of Treasury bond purchases, known as quantitative easing, in a bid to lower interest rates and spur lending and economic growth.
But indexes started to come off early gains amid a second day of testimony Thursday before a congressional committee where Bernanke said he wasn’t "at this point" prepared to take action to further bolster the economy.
Investors also tried to look past a warning that the United States may lose its key triple-A credit rating.
Moody’s Investor Service warned late Wednesday that it may downgrade its view on the U.S. because of the failure of the White House and Congress to raise the $14.3-trillion U.S. borrowing limit and avoid a default.
Talk of another round of stimulus raised inflation worries, which pushed gold prices higher earlier in the session. But by late morning, the gold sector had lost ground, and Barrick Gold Corp. fell 59 cents to $46.03 while Gabriel Resources jumped 64 cents to $7.96.
In the energy sector, Imperial Oil shed 40 cents to $44.19.
Nexen Inc. shares were 63 cents higher to $21.80 as it reported profits of $252 million, or 45 cents per share. Analysts polled by Thomson Reuters were on average expecting earnings of 44 cents per share. Also, Nexen lowered annual production forecasts due to slowdowns at its Buzzard oilfield operations.
The base metals sector was down while the September copper futures were two cents lower at $4.38 U.S. a pound. First Quantum was down $4.34 to $131.07 while Inmet Mining Corp. reversed itself 87 cents to $70.39.
In other corporate news, Corus Entertainment Inc. said third-quarter profits rose to $39.2 million from $28.3 million a year ago. Revenue increased to $211.8 million from $198.4 million. Its shares ran up 35 cents to $21.00.
Astral Media Inc. shares moved down 27 cents to $37.58 as it said third-quarter net income increased to $49.3 million from $48.5 million a year ago. Revenues lifted to $268 million from $253.6 million.
ON BAYSTREET
The TSX Venture Exchange remained 1.82 points above breakeven to finish at 1,990.95, while the Nasdaq Canada index ducked back 9.45 points to 551.56
In Toronto, all but three of the 14 subgroups had lost ground on the day. Global base metals and their cousins in metals and mining subsided 1.8% each, while information technology demurred 1.2%.
The three gainers were health-care issues, advancing 0.3%, telecoms, up 0.2%, and consumer staples, inching ahead 0.1%.
ON WALLSTREET
In New York, stocks fell Thursday, giving up early gains after Federal Reserve Chairman Ben Bernanke said that the central bank may not be as willing to move on further stimulus as previously indicated.
The Dow Jones Industrials slipped 54.59 points to greet the closing bell at 12,500.80
The S&P 500 retreated 8.85 points to 1,308.87, and the Nasdaq Composite Index moved lower 34.25 points to 2,762.67
Shares of Alcoa, DuPont and Boeing were the biggest drags on the blue chip index.
Meanwhile, JPMorgan was the best performer on the Dow, rising roughly 2%, after reporting quarterly income and revenue that topped estimates. But the bank also said that it sees additional costs for resolving mortgage issues.
ConocoPhillips said it plans to split its operations into two distinct publicly traded corporations, sending its stock up 1.5%. In a tax-free spin to shareholders, ConocoPhillips will separate its oil refining and marketing business from its exploration and production operations.
The merger between NYSE Euronext and Deutsche Boerse moved one step closer to completion on Thursday after Deutsche shareholders gave preliminary approval of the merger. Shares of NYSE Euronext edged lower.
News Corp shares dropped 3% following several reports that the FBI is opening up an investigation into whether its media properties may have hacked into 9/11 victims' voicemails.
European music-streaming service Spotify launched in the U.S. today, bringing shares of competitor Pandora down 1%.
Marriott shares plunged more than 6.5%, after the company cut its full-year outlook.
Google shares jumped 9% in aftermarket trading following the company's much better-than-expected quarterly earnings. The search giant posted a profit of $8.74 U.S. a share, versus analysts’ expectations that Google would earn $7.86 U.S. a share.
After the bell Wednesday, Moody's Investors Services said it would put the sterling bond rating of the United States on review for possible downgrade.
Moody's initiated the review, because of the "rising possibility" that Congress will fail to raise the debt ceiling in time -- something that could lead to a U.S. default on its debt.
Economically speaking, the U.S. Labor Department said jobless claims fell 22,000 to 405,000.
Economists were expecting weekly claims to decrease to 410,000 claims. It was the 14th straight week filings came in above the key level of 400,000.
The June producer price index, a reading of wholesale inflation, fell 0.4% in June, after rising 0.2% the prior month. Economists were expecting the measure to have fallen 0.2%.
The Commerce Department said June retail sales rose 0.1%. Sales were expected to have fallen 0.2% last month.
The price on the benchmark 10-year note slid, raising the yield to 2.94% from Wednesday’s closing of 2.89%. Treasury prices and yields move in opposite directions
Oil for August delivery faded $2.28 to $95.77 U.S. a barrel.
Gold futures for August delivery rose $3.80 to settle at a fresh record high of $1,589.30 U.S. an ounce. Earlier in the trading session, gold set a new intraday record of $1,594.90 U.S.
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