The TSX ended lower on Wednesday after teetering around even for a good poriton of the day, as financial shares led the weakness and oil prices slipped. The strong early rally of gold and metal-based miners wasn't enough to overcome overall selling pressure.
The S&P/TSX Composite Index closed down 23.31 points, or 0.19%, to 12,124.26.
In data news -- Canadian consumer reports showed today that retail sales for July slipped 1% from June. This raises the chances that the economy will shrink in July. This will be the first time since August 2009 of such an occurence.
After a strong recovery from the financial crisis, banks in Canada could be set for a headache as a declining housing market and falling consumer loans are slowing retail growth.
Financials lead laggards -- Shares of Tononto-Dominion Bank closed down 1.37% at $74.22.
Research in Motion is once again in the news as speculation of a possible announcement for the launch of the ''Blackpad'' as competition for Apple’s iPad may be coming soon. Shares are up over 3% this morning.
Commodity Producers are mixed. Suncor is down .52% to $32.66 while Teck Cominco (Class A) shares are up 2.03% to $40.69.
On the gold front -- Gold stocks are trading up again today as gold continues making new highs.
Barrick Gold Corp., the world's largest producer, is up 1.42% to $48.73. Goldcorp is up 1.61% to $45.97. Kinross is up as well; dropping .77% to $19.70.
The Canadian dollar lost some momentum today against the U.S. dollar and traded down .000042 of a cent to .970545 cents US.
ON BAYSTREET
Nine of the TSX subgroups closed in the green today. Leading the way were base metal stocks; up 1.64%, metals and mining closed up 1.31%, and gold issues finished up 1.03%.
On the downside -- Financial stocks closed down 1.09%, health care ended down .97% and energy issues were down .90%.
At the close today, the TSX Venture Exchange added 7.93 points, to close at 1688.70, while the Nasdaq Canada index held in the green; up 2.31 points to 608.76.
ON WALLSTREET
U.S. stocks finished lower today led by poor sentiment after below-expectation results from software maker Adobe Systems Inc. and disappointment in the dividend presented by tech giant, Microsoft.
The Dow Jones Industrial Average closed down 21.72 points, or .20% at 10739.31. The S&P 500 closed down 5.50 points, or .48%, to 1134.28. The NASDAQ closed red as well; down 14.80 points, or .63%, to 2334.55.
Bankruptcy Rumor -- Blockbuster Inc is preparing to file for Chapter 11 bankruptcy within the next few days, claimed a source familiar with the video rental chain's plans.
Housing News -- Prices of U.S. single-family homes fell for a second straight month in July, the Federal Housing Finance Agency (FHFA) said on Wednesday.
Mining Stocks Performing Well -- Cliffs Natural Resources is up 2.23% to $61.98 and Freeport-McMoran Copper & Gold is up 1.84% to $84.52.
Hewlett-Packard slipping 0.8% and Microsoft dropping 1.2% to lead the Dow’s tech decliners. Microsoft’s slide came after the Company announced on Tuesday that it would raise its quarterly dividend payable to shareholders to 16 cents a share from 13 cents a share.
Aiding in the blue-chip index was Alcoa which led the Dow’s advancers with a 1.6% gain.
Financials are struggling. The sector is down 0.1% as multiline insurers and life and health insurers are laggards. Shares of Jefferies Group Inc. are leading the way; 5.11% to $23.01 on bad reports of third quarter net income.
Among stocks in focus -- Abbott Laboratories said it is recalling Similac-brand powder infant formulas distributed in the U.S., Puerto Rico, Guam and some Caribbean nations because of possible insect contamination. Shares of ABT closed down for the second straight day.
Shares of eBay Inc. slumped by 4.6% to $23.60 in early trades Wednesday as yesterday the Company announced that the Head of Marketplace will be leaving the Company for personal reasons.
CarMax Inc. shares climbed nearly 7% to $25.69 in early trading Wednesday after the company reported a second-quarter profit that beat Wall Street targets.
Shares of Novartis are up on news that the FDA has approved Gilenya for new multiple sclerosis.
Shares of biotech group Vical Inc. were crushed in early trading Wednesday on news that a Phase III clinical trial had shown its drug NV1FGF to be ineffective. Shares of Vical plunged over 40% to $2.25.
Another big-dropper this morning is Adobe Systems plunging 21% after its fourth-quarter earnings and revenue forecast were below market expectations.
The dollar slid to a 5-month low versus the euro on speculation the Federal Reserve’s willingness to ease monetary policy further will lessen demand for U.S. assets. The U.S. dollar dropped against 13 or its 16 counterparts today.
Oil futures for November delivery slid $.25 this afternoon to $74.72 a barrel.
Gold prices is up another 1.62% to 1294.90..
Bonds: The yield on the 10-year bond decreased 0.43 percentage point, to 2.5510%.
