Feb. 10, 2009 (Baystreet.ca) --
12:25 pm EST
Markets in both Toronto and New York remained in a state of suspense at midday Tuesday, with investors worried about rapidly slowing economies and the survival of General Motors Corp.
The S&P TSX Composite Index was still significantly down, 232.84 points by midday to 8,445.23.
The latest turbulence to hit markets comes after a weekend meeting of G7 finance ministers and central bankers failed to reassure investors, while a report from Moody's Investors Services highlighted risks to the European banking system.
The TSX energy sector dropped as EnCana Corp. declined $2.02 to $52.09 in Toronto and Suncor Inc. gave back $1.14 to $23.39
The base metals sector sagged as Sherritt International stepped back 16 cents to $2.76.
Teck Cominco Limited said that one-time charges and a sharp drop in commodity prices dragged the debt-strapped mining giant into a loss of $607 million or $1.28 a share for the fourth quarter.
The results reversed year-earlier profits of $280 million or $1.12 a share.
Quarterly revenue rose to $1.7 billion from $1.5 billion with financial results weighed down by $844 million in impairment losses, as well as the rapid decline in base metal prices that resulted in negative price adjustments of $270 million. Teck shares fell 51 cents to $4.41.
The gold sector ran up, with Goldcorp Inc. ahead $1.96 to $41.08 and Barrick Gold advanced $2.28 to $48.99.
The Canadian dollar was pounded alongside other major currencies as investors piled into the American greenback, tumbling 1.10 cents to 79.28 cents U.S.
BAYSTREET
Of the 13 TSX sub-groups, 11 remained lower, real estate's 5% dip the most severe, followed by financials, down 4.8%, energy tumbling 4.1%.
The two groups in the black were the haven called gold, surging 5.9% and materials, ahead 1.8%.
The TSX Venture Exchange proved the lone exchange actually gaining ground, up 1.22 points to 926.86 while the NASDAQ Canada index lost 26.84 points, to 466.22
ON WALLSTREET
The Dow Jones industrials index bled 268.89 points to 7,581.52. The Standard & Poor's 500 index tailed off 33.90 points to 792.92, while the NASDAQ composite index collapsed 58.27 points at 1,476.09.
In the U.S., the revised economic stimulus plan, which cleared the House of Representatives and Senate last week, is scheduled to be signed into law by President Obama later today in Denver, the site of his nomination speech, in which he said fixing the economy was critical to renewing "America's promise."
White House officials turned cautious Sunday about the extent to which the stimulus legislation -- weakened since its inception -- would act as instant pick-me-up to an economy in ruin.
Investors worry that General Motors Corp. and Chrysler LLC might not be able to prove by today's deadline that they can repay billions of dollars in loans and return to profitability. GM has already received $9.4 billion U.S. from the government, and could get another $4 billion U.S. if the Treasury Department signs off on its viability plan. Chrysler has borrowed $4 billion U.S., and is seeking another $3 billion U.S. GM shares plunged 38 cents to $42.12 U.S.
Wal-Mart Stores Inc. shares gained $1.29 to $47.82 U.S. The retailer beat analyst estimates even as fourth-quarter profit fell 7% to $3.8 billion U.S. Results were hurt by the strong U.S. dollar and a charge that stemmed from settling a labour lawsuit. The company also said Tuesday that first-quarter earnings could miss Wall Street expectations.
Treasury prices rallied, lowering the yield on the benchmark 10-year note to 2.67% from 2.89% Friday.
The March crude contract in New York moved $2.37 lower to $35.14 U.S. a barrel.
The latest flight to safety boosted gold prices with the April bullion contract on the Nymex up $27.90 to $970.10 U.S. an ounce.