The Toronto stock market weakened on Thursday afternoon as worries over a fast-approaching deadline for the debt woes in Cyprus overshadowed economic data.
The S&P TSX index lost 78.68 points to end Thursday at 12,747.87
The Canadian dollar improved 0.13 cents to 97.62 cents U.S.
TSX financials were also lower as Cyprus concerns spread to international banking stocks.
Also, TD Canada Trust says a "targeted" cyber attack caused its banking website and mobile banking service to go down for several hours on Thursday, though it says no personal information on its clients was obtained. TD shares fell 55 cents to $83.73.
In corporate developments, Lululemon Athletica Inc. posted a $109-million U.S. profit in the fourth quarter, coming in slightly ahead of analyst estimates. But the company also said that the recall of its black Luon pants earlier this week will cut into sales and profit — pushing its outlook for the current quarter below forecasts.
The company expects to lose between $12 million and $17 million of revenue in the first quarter because of the recall and earnings will be reduced by 11 to 12 cents per share. Lululemon shares were 92 cents higher to $66.29.
Shares of Yellow Media Group were lower after it said its long-time chief executive Marc Tellier would be leaving by this summer but
would remain to assist with a transition period. The shares were down 36 cents to $10.11.
Harry Winston Diamond Corp. posted a gain after it said it has received all the regulatory approvals required for the sale of its jewelry and watch division to the Swatch Group. Shares were down one cent to $17.11.
After the market closed, Finance Minister Jim Flaherty unveiled the latest federal budget, which was expected to shuffle government spending priorities without adding any new money.
On the economic slate, Statistics Canada reported this morning that retail sales rose 1% to $38.9 billion in January, partially offsetting the decline in December, led by higher sales at motor vehicle and parts dealers.
What’s more, those of us receiving regular Employment Insurance benefits fell in January for the third consecutive month, down 8,500, or 1.6%, to 531,100. Compared with the previous January, the number of beneficiaries was down 8.8%.
ON BAYSTREET
The TSX Venture Exchange slid 2.99 points to 1,102.98.
All but three of the 14 Toronto subgroups were lower on the day, weighed most by industrials, down 1.5%, while metals and mining gave back 1.1%, and energy stocks slid 1%.
The three gainers were gold, zooming 2.4%, materials, advancing 0.9%, and health-care, up 0.06%.
ON WALLSTREET
U.S. stocks fell Thursday, with technology stocks weighing on the broader market following lackluster earnings from Oracle.
The Dow Jones Industrials was still lower 90.24 points to 14,421.50, with Cisco, Hewlett-Packard and IBM among the biggest laggards.
The S&P 500 index was 12.89 points lower to 1,545.82. The tech-heavy NASDAQ Composite dropped 31.59 points to 3,222.60. Oracle was the biggest drag on both the S&P 500 and NASDAQ 100.
Investors are using high-profile earnings disappointments like Oracle's as an "excuse" to step back following a significant advance in stocks, according to one analyst
The Dow and S&P have gained 10% since November, when stocks first began their big advance. During the past couple of weeks, the blue-chip index has soared to record highs, while the S&P has remained less than 1% below its all-time high.
Just days after recalling see-through yoga pants, lululemon athletica reported earnings and sales that squeaked past estimates and said it was working closely with manufacturers to resolve the yoga pant issue. The company also said its current quarter and full-year earnings would come in below analysts' forecasts.
KB Home shares edged higher after the homebuilder reported that sales surged 59% in the first quarter, as more homes were delivered and prices increased.
Shares of Scholastic sank after the children's book publisher lowered its forecast for the year a second time, as sales of the Hunger Games books remained below last year's levels.
Economically speaking, the National Association of Realtors said that existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a three-year high, but slightly lower than expectations.
Elsewhere, the Philly Fed's index rose to two in March from minus 12.5 the prior month. Readings lower than zero signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Economists were expecting a reading of minus three for March.
Moreover, jobless claims totaled 336,000 last week, according to the U.S. Department of Labor. That's up 2,000 from the prior week, but less than the 345,000 claims forecast by Briefing.com consensus.
Prices on the 10-year U.S. Treasury gained a bit of ground, lowering yields to 1.93% from Wednesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.04 to $92.46 U.S. a barrel.
Gold prices tacked on $6.80 to $1,614.30 U.S. an ounce.
