Deteriorating global economic prospects continued to weigh on the Toronto stock market Wednesday as a weak outlook from resource giant Alcoa Inc. added to a pessimistic assessment from the International Monetary Fund.
The S&P/TSX composite index approached the noon hour down 53.50 points, to 12,220.07
The Canadian dollar lost 0.15 cents to 102.10 cents U.S.
The aluminum producer is viewed as a broad economic bellwether as its products are used in a wide variety of industries, from vehicles to appliances.
Alcoa shares were down just over three per cent as the company kicked off the start of the third-quarter reporting season by posting a loss of $143 million U.S., largely on one-time charges while adjusted results beat estimates. Revenue of $5.83 billion U.S. also beat expectations
On this side of the border, pharmacy chain franchisor Jean Coutu Group said Wednesday that its quarterly net profit was $51.2 million or 23 cents per share. That compared with $66.4 million or 20 cents per share in the comparable year-earlier period.
Revenue for its fiscal 2013 second quarter rose to $658.7 million from $635.2 million in the same fiscal 2012 period and the Quebec-based company’s shares were up three cents to $14.56.
Among financial issues, Sun Life Financial shed 14 cents to $32.55.
The base metals was down as the International Monetary Fund also downgraded growth prospects for China while December copper was unchanged at $3.72 U.S. a pound. Taseko Mines gave back 10 cents to $3.02.
The energy sector also declined, with oil prices relatively flat after concerns about supplies from the Middle East and the North Sea had pushed crude prices up more than $3 U.S. on Tuesday. Suncor Energy fell 14 cents to $32.55.
The gold sector limited TSX losses as Kinross Gold Corp. gained 10 cents to $10.28.
In other corporate news, Bauer Performance Sports Ltd. is buying team uniform maker Inaria International for $7 million. The hockey and lacrosse equipment company said the deal will help expand its business to include uniforms and its shares were down 16 cents to $10.79.
No Canadian economic data was set for release Wednesday.
ON BAYSTREET
The TSX Venture Exchange dropped 17.73 points to 1,310.08
All but three of the 14 Toronto subgroups were lower at noon. Global base metals slumped 0.8%, while utilities and real-estate stocks faltered 0.7% each.
The three gainers were consumer staples and gold, each up 0.4%, while telecoms bested Tuesday’s close by 0.2%.
ON WALLSTREET
Stocks south of the border came under pressure Wednesday as concerns about China's slowing growth and corporate earnings mounted.
The Dow Jones Industrial average greeted noon ET off 67.63 points, to 13,405.90
The S&P 500 stumbled 6.49 points to 1,434.99, while the tech-rich Nasdaq dipped 6.46 points to 3,058.56
Alcoa was the main drag on the Dow after the aluminum producer cut its forecast for Chinese demand late Tuesday. Chevron shares sank after the oil company said its third-quarter earnings will be "substantially lower" than second quarter results.
Consumer staples were among the best performers. Walmart rose to a record high as the nation's largest retailer holds its annual meeting. In the banking sector, shares of JP Morgan rose ahead of the bank's quarterly earnings report Friday.
Alcoa's conservative outlook for China came one day after a report showed Japanese car sales in China fell unexpectedly -- partly due to worsening relations between the two nations over a territorial dispute concerning a band of islands.
However, the news out of China wasn't all bad. Shares of Yum Brands rose 8% after it reported earnings Tuesday that beat expectations and reassured investors that sales at its China-based restaurants were still growing at a robust pace.
In the United States, third-quarter earnings continued Wednesday morning with Costco reporting better-than-expected results.
In addition to earnings, investors will get a reading on the health of regional economies when the Federal Reserve releases its Beige Book at 2 p.m. ET. But analysts aren't expecting bombshells.
Elsewhere on the economic slate, the Mortgage Bankers Association reported mortgage applications fell 1.2% last week compared to the previous week. The U.S. Census Bureau said wholesale trade rose 2.1% in August versus the same month last year.
The price of the benchmark 10-year U.S. Treasury staggered, pushing the yield up to 1.73% from 1.72% late Tuesday. Treasury prices and yields move in opposite directions.
Oil prices regained 85 cents to $93.22 U.S. a barrel.
Gold prices decreased $1.40 to $1,763.70 U.S. an ounce.
