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Jan. 21, 2010 (Baystreet.ca) --
The bears remained in control of Bay Street for a second day Thursday, signaling the equities may be in correction mode following a broad-based advance to yearly highs.
The S&P/TSX Composite Index tumbled 148.29 points, or 1.3%, by noon to 11,531.03
Resource stocks led a mid-morning plunge as commodity prices remained depressed. Financials also weighed heavily on Toronto's main index amid speculation U.S. President Barack Obama will propose new regulation on American banks.
The central bank said the country's growth will peak in the next quarter at a 4.3% annual rate only to gradually ease to 2.2% at the end of 2011. The bank also maintains its stand on the Canadian dollar saying it would trade at an average of 96 U.S. cents through 2011.
The Gold Index shed strength, as Randgold Resources slipped 2.09% and Iamgold Corp. surrendered 2.75% after announcing 2009 gold production of 939,000 ounces in line with guidance.
Kinross Gold eased 0.88% after reports said Russia's second- richest man, Roman Abramovich, will gain about 1.5% in the company in exchange for two gold deposits in the Arctic Chukotka region.
Meawhile, gold producer Medusa Mining gained 4.76% after reporting gold production of 21,108 ounces for December quarter, up from 12,158 ounces in the prior year quarter and said its exploration budget for 2010 is increased to $18 million.
Canadian Oil Sands Trust rose 1.66% and Canadian Natural Resources gained 0.84%.
Mineral explorer South Gopi Energy Resources edged up 0.61% after it said it will price its previously announced 27 million common share offering at $17 per share.
Mining company Strateco Resources slipped 1.08% after it said it reached a final agreement for a $15 million private placement with The Sentient Group.
Agri-business company Viterra lost 1.32% after it reported fourth-quarter net loss of $920,000 or breakeven per share, compared to net income of $46.8 million or $0.20 per share last year. It also announced plans to reduce the short-term debt of its Australian operations by $300 million, by the end of January 2010.
Bombardier Inc. surrendered 1.5% to $5.26 after CI Capital initiated coverage of the stock with an "Outperform" rating and set a price target of $7.
Telus Corp. moved down 0.82% after its rating was cut to "Sector Perform" from an "Outperform" at UBS.
Similarly, Manitoba Telecom Services lost 1.82% after its rating was trimmed to "Underperform" from "Perform" at UBS.
Non-conventional energy company Canadian Spirit Resources Inc. gave in 2.42% after said it plans capital expenditure of up to $18.0 million for 2010, up significantly from $1.2 million in 2009.
Pharmaceutical research services provider MDS Inc. edged down 0.63% after reporting adjusted loss per share of $0.10, compared to a loss of $0.08 for the same period in 2008 in its preliminary and unaudited financial results for the fourth quarter.
In economic news, Statistics Canada said country's wholesale sales rose 2.5% to $42.4 billion on widespread gains, with six of the seven sectors reporting increased sales.
The Canadian dollar skidded 0.41 cents to 95.17 cents U.S.
ON BAYSTREET
All but one of the 14 TSX subgroups were down by noon, weighed mostly by metals and mining stocks, plummeting 4.9%, global base metals, down 4.8%, and materials, which faded 2.3%.
The lone gainer was information technology, forging ahead 0.2%.
The TSX Venture Exchange gave back 36.46 points to 1,554.23, while the Nasdaq Canada index fell 1.71 points to 710.54.
ON WALLSTREET
In New York, stocks tumbled Thursday as a strong dollar and concerns about China's bank lending practices zapped commodity prices and shares, sparking a broader selloff.
The Dow Jones Industrials collapsed 178.88 points, or 1.7%, to greet midday at 10,424.27. The S&P 500 slipped 19.54 points to 1.118.50, and the Nasdaq swooned 24.08 points to 2,267.17.
Investors also considered the latest jobless claims report and Goldman Sachs' better-than-expected profit report.
Stocks fell Wednesday as a strong dollar and questions about China's lending practices hit commodities, and IBM's outlook failed to impress investors. Worries about China remained in place Thursday.
Reports Wednesday said China has asked banks to slow the pace of lending this year in an attempt to get ahead of inflation.
Goldman Sachs said it earned $8.20 U.S. a share in the fourth quarter, trouncing forecasts for a profit of $5.20 U.S. per share, thanks to strong gains in its investment unit. Goldman also reported full-year 2009 revenue that doubled from a year ago.
The company also attempted to address criticism of its pay packages one year after accepting government money at the height of the financial crisis. Goldman paid its employees $16.2 billion U.S. in salaries and bonuses last year, up almost 50% from 2008, but still less than what had been expected.
Goldman shares were little changed, but other financial shares fell, including Bank of America, JPMorgan Chase, American Express and Morgan Stanley
Starbucks reported higher quarterly sales and earnings that topped estimates in a report released late Wednesday. The coffee chain's results were driven by growth at stores open a year or more, a retail metric known as same-store sales.
In its weekly report on jobless claims, the government reported that claims jumped to 482,000 in the week ended Jan. 16. That's higher than the prior week's revised total of 446,000.
Initial jobless claims were expected to have totaled 440,000, according to a consensus of economists from Briefing.com.
The Philadelphia Fed, a regional reading on manufacturing, fell to 15.2 in January from 22.5 in December versus forecasts for a drop to 18.
Treasury prices were little changed, with the yield on the 10-year note at 3.65%, unchanged from late Wednesday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped $1.52 to $76.18 U.S.
Gold prices tumbled $21 to $1,092 U.S.