The Toronto stock market was negative Friday as investors sold off stocks across most sectors amid worse-than-expected economic figures for Canada and the United States.
The S&P/TSX Composite Index fell 102.15 points to end the day, week and month at 12,945.60
The Canadian dollar dropped 0.65 cents to 104.67 cents U.S.
The S&P/TSX composite index has lost about 600 points this week.
The financials group weakened, with Royal Bank falling 65 cents to $51.40 and TD Bank shed 60 cents to $76.49.
The gold sector was down, with Goldcorp Inc. lost $1.02 to $45.69 while Barrick Gold Corp. faded 32 cents to $45.55.
The energy sector also faltered, as Cenovus Energy was down 31 cents to $36.73 and Canadian Natural Resources lost 65 cents to $38.58.
The base metals sector was off as the September copper contract in New York rose one cent to $4.48 U.S. a pound. Sherritt International fell four cents to $5.97 and Teck Resources was down 54 cents to $47.34.
In earnings news, Torstar Corp. said the sale of its stake in CTV Inc. boosted the media company’s second-quarter profit to $228.3 million from $23.7 million a year ago.
The owner of the Toronto Star and other newspapers, Harlequin books and numerous websites said that excluding the impact of the CTV sale and a loss from associated businesses in 2010, Torstar’s net income would have been $38.2 million or 47 cents per share in 2011, up from $30.4 million or 39 cents per share a year earlier. Its shares dipped 61 cents to $11.20.
George Weston Ltd. lost 44 cents to $66.30 as its second-quarter net earnings rose 22.7% to $157 million on slightly higher sales and lower costs. Sales grew 0.7% to $7.53 billion from $7.48 billion.
Economically speaking, Statistics Canada came out with figures this morning that suggest the economy went the wrong way during the month of May, contracting by 0.3%, with losses in the manufacturing and construction industries the main culprits.
The federal agency also reported that the Industrial Product Price Index decreased 0.3% in June over May, due largely to falls in coal and petroleum prices. It added that the Raw Materials Price Index fell the same month by 2.2% as a result of lower prices for mineral fuels.
ON BAYSTREET
The TSX Venture Exchange eased off 4.85 points to 1,979.10 while the Nasdaq Canada index slid 4.27 points to 530.26
In Toronto, all but two of the 14 subgroups lost ground Friday, weighed mostly by gold, off 1.3%, materials, down 1.2%, and energy, sagging 1%.
The only gainers were industrials, ahead 0.3%, and health-care, 0.1% more robust.
ON WALLSTREET
In New York, stock prices fell modestly Friday as investors worked through a worse-than-expected report on U.S. economic growth and the sluggish progress on a debt ceiling deal.
While stocks were well off their earlier lows, the major U.S. indexes are still on pace for their worst week in a year.
The Dow Jones Industrials faded 96.87 points to conclude July at 12,143.20. But selling had been worse, with the blue-chip index shedding as much as 156 points earlier in the session.
The S&P 500 let go of 8.39 points to 1,292.28 The Nasdaq Composite Index slipped 9.87 points to 2,756.38.
Traders and market observers pointed to a few reasons for why Friday's declines were more modest than originally anticipated.
Stocks were oversold on a short-term basis, traders said, with the Dow down for the sixth straight session and the S&P 500 flirting with a key technical level. Other traders pointed to what appeared to be progress on the debt ceiling.
Drug maker Merck said it plans reduce its workforce by 12% to 13% from 2009 levels by the end of 2015, as the next phase of a restructuring program. Shares fell 2%
Shares of Newell Rubbermaid rose 9% after the company said it earned 46 cents U.S. a share in the second quarter, beating forecasts by four cents. The household products company also lowered its full-year guidance, citing higher commodity costs and weaker sales.
Shares of online travel site Expedia jumped 10%, after the company reported better-than-expected earnings.
U.S. stocks lost steam late in Thursday's session, pushing the Dow lower for the fifth straight session. It's all about the debt ceiling, which must be raised by Aug. 2, when the Treasury will no longer be able to pay all its bills.
But investors remain worried that lawmakers won't be able to make a deal in time.
The Republican leadership has informed its members that the House will be in session this weekend
House Speaker John Boehner's plan to raise the debt ceiling did not come up for a vote late Thursday, after he was unable to muster sufficient support from his own caucus.
Even if Boehner's plan does pass the House, Senate Majority Leader Harry Reid has promised the Democratic-controlled Senate will block it, and President Obama has threatened a veto.
Economically speaking, the government said the U.S. economy grew at a 1.3% annual rate in the second quarter -- up from a revised 0.4% rate in the previous three months. The data came in far worse than expected.
The Chicago purchasing managers index fell to a reading of 58.8 in July. Economists had expected a reading of 58, according to Briefing.com.
Bond prices rose sharply Friday, lowering the yield on benchmark 10-year notes to 2.80% from Thursday’s 2.95%. Bond prices and yields move in opposite directions.
Oil for August delivery dropped $1.52 to $95.92 U.S. a barrel.
Gold futures for August delivery jumped $14.90, or 0.9%, to $1,628.30 U.S. an ounce. Earlier in the session, gold hit an intraday record of $1,634.90 U.S. an ounce.
