The Toronto stock market sold off big time Friday as worries about the strength of the U.S. economy raised demand worries and helped send oil and metal prices tumbling.
The S&P/TSX index slumped 155.46 points, or 1.3%, to greet noon Friday at 12,325.91
The TSX is now back in negative territory for the year.
The Canadian dollar weakened 0.32 cents at 98.66 cents U.S.
Gold has fallen this week after Goldman Sachs dropped its forecast for 2013 to $1,545 U.S. an ounce, down from a prior forecast of $1,610. Also, minutes of the latest Federal Reserve meeting showed members were at odds about when to stop quantitative easing.
Goldcorp Inc. gave back $1.46 to $30.05.
Barrick Gold faded $1.75, or 7%, to $23.25. Barrick shares have been under particularly heavy selling pressure this week, tumbling 9% on Wednesday after a Chilean court suspended its Pascua-Lama mine after indigenous communities complained that the project is threatening their water supply and polluting glaciers.
The energy sector fell as Canadian Natural Resources shed $1.26 to $31.23 while Cenovus Energy fell 68 cents to $30.26.
May copper stepped back 10 cents to $3.33 U.S. a pound and the base metals sector declined. Rio Alto Mining was down 26 cents at $4.34 and Teck Resources dropped 47 cents to $28.23.
Weakness spread across all TSX sectors with the financials down. Bank of Montreal was 59 cents lower to $62.53 and Manulife Financial gave back 15 cents to $14.27.
In Canada, Dollarama Inc. is raising its dividend by three cents to 14 cents.
The Montreal-based discount chain made the announcement as it also reported that its quarterly net earnings rose to $77.13 million or $1.04 per share, up from $63.6 million or 84 cents per share. Results ex-items came in at $1.06, four cents better than estimates.
Dollarama also had $561.9 million in sales in the fourth quarter, beating estimates of $546.33 million and its shares gained $3.01 to $67.65.
Shaw Communications Inc. had $182 million or 38 cents per share of net income and $1.25 billion of revenue in the quarter ended Feb. 28, both up slightly from the same time last year.
Shaw is raising its 2013 forecast for free cash flow, with capital spending weighted to the second half of this financial year but staying below 2012. Its shares dropped 43 cents to $24.23.
ON BAYSTREET
The TSX Venture Exchange plummeted 27.35 points to 1,021.19
All but one of the 14 Toronto subgroups were down by noon, weighed down mostly by gold, off 4.7%, materials, sliding 3.7%, and the metals and mining group, down 3.2%.
Only a 0.2% improvement by consumer staples kept things from being unanimous.
ON WALLSTREET
Stocks were slightly lower Friday, following weak retail sales and mixed bank earnings.
The Dow Jones Industrials Average stepped back 36.10 points from Thursday’s all-time record close at 14,829
The S&P 500 index fell 8.13 points to 1,585.24. The tech-heavy NASDAQ Composite moved down 16.63 points to 3,283.52
Despite the step back, stocks are on track to finish the week sharply higher, and just below the record highs set Thursday. The Dow and S&P 500 are up about 2%, while the NASDAQ has gained almost 3% for the week.
Stocks have been on a tear this year. The Dow is about 1% away from 15,000, while the S&P 500 is only 0.8% below 1,600. There hasn't been any one catalyst pushing stocks higher lately. Mostly, investors just don't want to miss the next leg up.
Investors focused on earnings Friday, as two big banks opened their books. JPMorgan Chase reported a first-quarter profit that topped forecasts, but revenue missed estimates. Similarly, Wells Fargo reported a jump in profit, but a decline in revenue.
Shares of both banks edged lower.
The first quarter was expected to have been a tough one for banks, with interest rates hovering near record lows. Citigroup, Bank of America, Goldman Sachs and Morgan Stanley will report their results next week.
J.C. Penney shares edged higher following reports that it hired Blackstone to help the retailer raise $1 billion U.S.
In other corporate news, NASDAQ executives will be getting their bonuses cut this year, and the bungled Facebook IPO is to blame.
On the economic front, the U.S. government reported that retail sales dropped 0.4% in March, dragged down by weakness in electronics and gasoline prices. That was weaker than expected.
The Producer Price Index fell 0.6% in March, a more dramatic drop than the 0.1% economists had forecast.
Prices on the 10-year U.S. Treasury surged, dropping yields to 1.73% from Thursday’s 1.79%. Treasury prices and yields move in opposite directions.
Oil prices sank $2.53 to $90.98 U.S. a barrel.
Gold prices hurtled earthward $65 to $1,499.90 U.S. an ounce.
