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Mar. 27, 2009 (Baystreet.ca) --
04:28 pm EST
Gold and energy stocks led the Toronto stock market to a triple-digit slide Friday afternoon as investors took some profits from a solid March rally, now into its third week.
The S&P/TSX Composite Index ended the day 168.81 points in the red, at 8,826.69. The main index was still up 18-19% since the market's rally took off March 10.
The TSX energy sector weakened as EnCana Corp. surrendered $2.20 to $52.48 and Suncor Inc. declined 40 cents to $29.50.
The Toronto financial group fell. Manulife Financial pulled back 28 cents to $15.12 and National Bank slipped 98 cents to $41.12.
The gold sector declined, as Barrick Gold Corp. faded $1.19 to $39.59.
Agrium Inc. is raising its bid for CF Industries Holdings Inc. to $4.2 billion U.S., about 20% above the original offer. Agrium shares lost $1.71 to $47.27.
Magellan Aerospace descended one cent to 34 cents after it said it may be unable to continue as a going concern despite erasing losses. Magellan needs to renew a credit facility and win an extension on a $50-million loan to stay aloft.
Shares in yoga-wear retailer Lululemon Athletica Inc. surged for a second day although same-store sales sagged 8% in the fourth quarter compared to a year earlier and are expected to decline further.
Quarterly profit fell to $10.9 million from to $14.6 million but Lululemon shares rose $1.08 to $10.48 after running up $1.26 Thursday before the earnings report.
Economically speaking, Canadian investors digested plans by the Ontario government to give businesses $4.5 billion in tax cuts over three years. The provincial corporate income tax rate is to drop to 10% by 2013 from the current 14%.
The Canadian dollar was off 0.44 cents to 80.81 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, all but two were negative. Gold stocks were 2.6% less shiny, energy stocks suffered 2.3%, and consumer discretionaries, off 1.8%
Metals and mining were up 0.3%, to lead the two gaining groups, with telecoms narrowly ahead, 0.2%.
The TSX Venture Exchange gave back 13 points to 961.02 while the Nasdaq Canada Index tailed off 2.29 points to 464.37
ON WALLSTREET
The Dow Jones Industrials average ended the day in negative country, 128.15 points, to end the week at 7,796.41.
The S&P 500 index had lost 13.92 points to 818.94, while the Nasdaq subtracted 24.39 points to 1,552.61.
Since falling to more than 12-year lows on March 9, the Dow had gained 21% and the S&P 500 had gained 23% as of Thursday's close. Also on March 9, the Nasdaq touched a more than six-year low. Since then, it has gained 25%.
But year-to-date, only the Nasdaq has closed in positive territory, while the Dow and S&P 500 remain below early-February levels.
A sizable pullback would not necessarily derail the market's upswing, said Peter Cardillo, market economist at brokerage Avalon Partners in New York. He regards himself as fully invested, and "even if we were to drop 3% to 4%, it wouldn't worry me."
Google said late Thursday that it was cutting just under 200 sales and marketing positions worldwide. It is the second round of layoffs in Google history.
General Motors shares gained on published reports that the government could extend the automaker's restructuring deadline, giving it more time to gain concessions from unions and qualify for more taxpayer help.
The Wall Street Journal said that the government could extend the March 31 deadline by 30 days.
On Thursday, GM said that 12% of its U.S. workforce has taken its latest buyout offer. However, the company is still looking to work with the union to alter retiree health care benefits, among other things.
On the economic front, President Obama met Friday with executives from JPMorgan Chase, Citigroup and the nation's other largest banks to discuss the financial crisis.
The U.S. Commerce Department reported that consumer spending edged up 0.2% in February, in line with expectations. That follows a 1% jump in January, upwardly revised from the 0.6% rise originally reported.
But the report also said incomes fell 0.2% in February, the fourth drop in five months, reflecting massive job cuts.
Treasury prices fell, raising the yield on the benchmark 10-year note to 2.76% from 2.73% Thursday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for May delivery fell $1.96 to settle at $52.38 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery fell $16.90 to settle at $925.30 U.S. an ounce.