The Toronto stock market tumbled more than 150 points mid-morning Tuesday as commodity prices retreated amid worries that Greece could be edging closer to default.
The S&P/TSX Composite Index fell 199.94 points – or 1.7% -- by noon to 11,660.72
The Canadian dollar sank 0.60 cents to 100.03 cents U.S.
In the oil patch, Canadian Natural Resources gave back 94 cents to $30.70 and Suncor Energy was 59 cents lower at $29.63.
Copper prices are also down sharply from May 1, losing about 3.5%. The July contract was down 11 cents on Tuesday to $3.66 U.S. a pound. Copper is viewed as an economic bellwether as it is used in so many industries. The base metals sector fell substantially and Teck Resources declined $1.36 to $32.98 while Ivanhoe Mines lost 69 cents to $9.66.
Railway stocks fell alongside commodity prices and mining stocks, with Canadian National Railways down $1.16 to $82.89 and Canadian Pacific Railway off $1.45 to $73.04.
The gold sector tumbled as Goldcorp Inc. faded $1.75 to $34.18 and Barrick Gold Corp. shed $1.32 to $36.35.
Blue chips also contributed to the negative showing with the financial sector down. Scotiabank lost 54 cents to $53.05 and TD Bank eased 88 cents to $80.77.
On the corporate front, Research In Motion gained five cents to $11.80 as the BlackBerry maker hired two veterans from the mobile computing industry for the key roles of chief operating officer and chief marketing officer.
Kristian Tear, who joins RIM from Sony Mobile Communications, where he served as executive vice- president, will be the new COO. Frank Boulben, the former executive vice-president of strategy, marketing and sales for LightSquared, will serve as CMO.
There was also plenty of earnings news to digest.
Food company George Weston Ltd. said first-quarter net earnings attributable to shareholders grew 18% to $124 million from $105 million in the quarter a year earlier. Sales increased 1% to $7.22 billion from $ 7.15 billion a year ago but its shares dipped 38 cents to $60.10.
Molson Coors Brewing Co. reported net income from continuing operations fell 3.9% to $79.4 million U.S., or 44 cents per share. But underlying earnings rose to $85.3 million U.S., or 47 cents per share. Net sales were up 0.1% to $691.4 million U.S. Its shares fell $1.53 to $40.51 U.S. in New York
Uranium One Inc. said its first-quarter earnings fell to $4.5 million from $14 million a year ago as it reported increased production, but lower uranium prices and a hedging-related charge. Revenue was $95.9 million compared to $101.9 million.
Excluding one-time items, the company reported adjusted earnings of $15.1 million, or two cents per share, compared with $15 million, or two cents in the same quarter of 2011 and its shares dropped 17 cents to $2.65.
On the economic slate, Canada Mortgage and Housing Corporation said housing starts unexpectedly surged in April by 14% to an annualized rate of 244,900, due primarily to a 27.4% surge in urban multiple starts, to 158,500.
ON BAYSTREET
The TSX Venture Exchange tumbled 64.51 points to 1,332.91, while the Nasdaq Canada fell 4.86 points to 377.36.
All 14 Toronto subgroups lost ground Tuesday, with metals and mining suffering the most, at 4%. Gold doffed 3.7% and materials shed 3.4%.
ON WALLSTREET
A selloff gained momentum on Wall Street, with the Dow sinking more than 150 points, as Greece's uncertain political situation keeps investors on edge.
The Dow Jones Industrials collapsed 150.95 points, or 1.2%, at the lunch break to 12,857.60
The S&P 500 ducked back 16.53 points to 1,353.05. The tech-rich Nasdaq Composite Index slipped 42.88 to 2,914.88.
Shares of fashion accessories maker Fossil plunged after it reported first-quarter revenue that fell short of even the lowest forecasts.
Fast food chain Wendys reported operating income of one cent U.S. a share, falling short of analysts' forecasts for a profit of three cents U.S. a share.
Shares for Electronic Arts slipped after the video-game maker cut its first-quarter outlook for the period ending in June.
The Government Accountability Office issued a report Tuesday that the U.S. Treasury may eventually turn a $15.1-billion U.S. profit on its bailout of insurer AIG when all final payments and asset sales are complete.
McDonald's Corp.'s same store sales increased 3.3%, both globally and in the U.S. market. Analysts were expecting sales to grow 5%, according to Reuters. Sales rose 3.5% in Europe, but only 1.1% in the company's unit that includes Asia-Pacific, Middle East and Africa.
In other corporate news, shares of DirecTV slipped even as the broadcast satellite provider reported slightly better earnings and sales in line with forecasts.
Entertainment conglomerate and Dow component Walt Disney will report earnings after the close. The studio had a blockbuster weekend with "The Avengers," which broke records with box office sales of $200.3 million U.S. during opening weekend, although those sales will not be included in this report, while an estimated $200 million U.S. in losses on epic bomb "John Carter" will.
All eyes will continue to be on Europe, a day after Greece's main center-right party failed to form a coalition government.
Now, the left-wing coalition, which is opposed to austerity as the way to close Greece's debt gap, will have three days to form a government.
The latest development feeds investors' fears that Greece might have to drop out of the euro-zone
As various parties grapple with forming a coalition government in Greece, it's looking increasingly likely that new elections will need to be held, most likely in mid-June. That throws into question whether Greece will be forced to renegotiate its bailout funding.
Greek leftist leader Alexis Tsipras on Tuesday laid out the radical agenda he hopes to pursue if he becomes prime minister, including the cancellation of international loan agreements to Greece that forced the country into sharp budget cuts.
In the bond market, investors bought €1.3 billion worth of short-term Greek government bills out of €2.6 billion offered. The yield was 4.69%, up from 4.55% at the last auction in April.
The price on the benchmark 10-year U.S. Treasury strengthened, pushing the yield down to 1.83% from Monday’s 1.88%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil fell $1.57 to $96.37 U.S.
Gold futures for June delivery dropped $26.40 to $1,612.70 U.S. an ounce.
