Toronto's stock market took a hit, despite jumps in the gold sector Tuesday.
The S&P/TSX composite index slipped 52.53 points to end the session at 12,109.75
The Canadian dollar dumped 1.30 cents to 98.39 cents U.S.
Investors digested some weak earnings reports and the Bank of Canada warned of slowing economic conditions while keeping its key interest rate unchanged
Earnings misses included Canadian Pacific Railway Ltd., which said its net earnings were $186.8 million or $1.10 per share, missing analyst estimates by a penny as higher fuel prices and operating expenses offset stronger revenues. The railway’s revenue came in at $1.34 billion U.S., which met expectations. Its shares fell 33 cents to $59.50.
The TSX found support from the gold sector as Barrick Gold Corp. climbed $1.59 to $48.04 while Goldcorp Inc. improved by $1.95 to $48.39.
The energy sector stepped back as Suncor Energy declined 46 cents to $31.12 while Talisman Energy was down 37 cents at $13.77.
The base metals sector moved back as copper prices stepped back, down five cents to $3.40 U.S. a pound. Chinese manufacturing data helped send the metal 23 cents higher on Monday. China is the world’s biggest consumer of the metal, which is often used as a barometer of global economic health since it is used in so many applications, from wiring to infrastructure.
Teck Resources lost 88 cents to $35.92 and First Quantum Minerals fell 56 cents to $17.27.
The financial sector declined with Royal Bank down 38 cents to $47.70.
Online investment broker TD Ameritrade says its fiscal fourth-quarter profit shot up 44% to $163.7 million U.S. or 29 cents a share, missing estimates by two cents. Revenue came in at $703.5 million U.S., which missed estimates of $713.6 million U.S.
TD Bank, which owns a minority stake of the U.S. online broker, said it expects TD Ameritrade’s fourth-quarter earnings to translate into a contribution of $54 million to the Canadian bank’s fiscal fourth-quarter net profits. TD shares fell $1.28 to $73.68.
Coventree Inc. has been informed by the Ontario Securities Commission that the regulator will seek an order requiring the company and its founders to pay $16.5 million in combined costs and penalties. The firm came to prominence during the so-called ABCP crisis in 2007.
The $32-billion ABCP market in Canada collapsed over concerns that some of the notes were backed by U.S. subprime mortgages. Coventree shares jumped 80 cents to $3.50.
Futuremed Healthcare Products Corp. has agreed to a takeover by Cardinal Health Canada Inc. Cardinal is offering $8.15 per share in a deal that has an estimated value of $165 million.
Futuremed shares surged $1.91 to $8.11.
Speaking of things economic, Statistics Canada reported Tuesday morning that retail sales in Canada rose 0.5% to $37.8 billion in August over July, mostly on the back of higher sales for cars, car parts and gasoline.
Also this morning, Bank of Canada Governor Mark Carney announcement the central bank held its key interest rate steady at 1% on Tuesday and dropped any mention of the need to raise rates, as the weak global economy forced it to cut sharply its growth and inflation projections.
It estimated Canada’s economy likely grew a modest 2.1% this year -- most of it in the first quarter -- and will fare even worse at 1.9% next year. Both numbers were 0.7 percentage points less than the bank had projected in July.
ON BAYSTREET
The TSX Venture Exchange improved 5.12 points to 1,565.45 while the Nasdaq Canada index remained negative 10.63 points to 435.48
All but three of the 14 Toronto subgroups were negative to end the day. Global base metals tanked 2.4%, while metals and mining stocks were bruised 2.3%, and energy went down by 1.5%.
Gold led the three gainers, up 3.9%, while materials climbed 1.9% and consumer staples moved 0.3% into the green.
ON WALLSTREET
In New York, stocks continued to drift in the red Tuesday afternoon, as investors digested a batch of earnings reports and geared up for a key summit on Europe's debt crisis
The Dow Jones Industrials tumbled 207 points, or 1.7%, on the day to 11,706.60
The S&P 500 let go of 25.14 points to 1,229.05, while the Nasdaq Composite Index stumbled 61.02 points to 2,638.42.
Netflix was a big loser Tuesday, a day after the company announced it lost 800,000 U.S. subscribers in the quarter. Shares sank 35%, dragging on both the S&P 500 and Nasdaq indexes.
Meanwhile, 3M -- which missed analysts' earnings estimates -- weighed on the Dow with shares falling more than 5%.
Investors are awaiting a European summit Wednesday, when government heads -- including German Chancellor Angela Merkel and French President Nicolas Sarkozy -- have pledged to unveil a comprehensive plan to tackle the region's debt crisis.
Markets have been rallying on that promise since the start of October, and many traders say financial markets have already priced in high expectations. But with only a day remaining, uncertainty has weakened that resolve.
Investors were briefly spooked midday Tuesday by news that a meeting of E.U. finance ministers had been cancelled. The meeting had not actually been confirmed, but the market reaction highlighted just how jittery investors are.
In addition to dealing with Greece's financial troubles, European politicians also have to tackle a plan that will support Italy and other struggling European nations, experts said. Given the increasing number of moving parts, those same experts think European leaders will continue to kick the can down the road for several months longer, as they struggle to agree on the terms of a solution.
BP shares rose, after the oil company announced its profit rose to $4.9 billion U.S. in the third quarter -- up from $1.8 billion U.S. in the year-prior quarter.
Swiss pharmaceutical company Novartis AG announced Tuesday that it will cut 2,000 jobs over the next three to five years. Shares fell as the announcement was coupled with a weaker-than-expected earnings report.
Online retailer Amazon.com will announce its results after the closing bell. The company is predicted to post earnings down nearly 50% from last year.
On the economic front, consumer confidence fell sharply to 39.8 in October, its lowest reading since March 2009. Economists were expecting the figure to come hold steady at 46.
U.S. home prices rose for a fifth straight month in August, according to the S&P/Case-Shiller index, a gauge of home prices across 20 major cities. Prices edged up 0.2% during the month, but remain down 3.8% on a yearly basis.
The price on the benchmark 10-year U.S. Treasury gained ground, lowering the yield to 2.13% from 2.23% late Monday. Treasury prices and yields move in opposite directions.
Oil for October delivery travelled higher by $1.75 to $93.02 U.S. a barrel
Gold futures for December delivery added $48.60 to $1,700.90 U.S. an ounce.
