Sharp drop for markets

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Commodities, Greece weigh on TSX Apr. 22, 2010 (Baystreet.ca) -- Bay Street stocks opened significantly lower Thursday amid falling commodities prices and on renewed worries over the Greece debt-situation. The S&P/TSX Composite Index began Thursday down 132.42 points, or 1.1%, at 12,002.14. Eurostat said Thursday that the Greek budget deficit jumped to 13.6% of its GDP in 2009, as against the government's projection of 12.7%. Blackberry maker Research In Motion may be in play after Nokia, the world's biggest mobile phone maker, reported a lower-than-increase in first quarter earnings. Earlier this week, Apple Inc. reported better-than-expected earnings, mainly on higher sales of its smart phone, iPhone. In corporate news from Canada, provider of product life cycle solutions to OEMs Celestica Inc. reported improved earnings in first-quarter at $0.11 per share, compared to net earnings of $0.08 per share for the same period last year. Drilling services provider Precision Drilling Trust reported first-quarter net income of $0.22 per unit, compared to $0.28 per unit in the same quarter last year. Specialty retailer West 49 Inc. swung to profit, reporting fourth-quarter net income of $0.01 per basic share, compared to net loss of $0.13 per basic share last year. Beer maker Brick Brewing Co. swung to profit in FY10, reporting net income of $0.05 per share compared with a loss of $0.31 per share in the prior-year period. Mobile local search services provider Multiplied Media Corp. reported a narrower net loss of $0.04 per share in 2009, compared to a loss of $0.11 in the prior year. Torstar Corp. is emerging as a favourite to buy ailing media company Canwest Global Communications Corp.'s insolvent newspaper assets, the Globe and Mail reported. In economic news, Statistics Canada said the number of people received regular employment insurance remain unchanged at 698,800 in February. In other report released today, the agency said Canada's composite leading indicator increased by 1.0% in March, recording gains for a 10th straight month. The Canadian dollar stepped back a mite from parity with the American dollar, skidding 0.33 cents to 99.73 U.S. ON BAYSTREET All 14 TSX subgroups were lower at the outset. Metals and mining stocks were the worst off, losing 1.7%, followed by global base metals and materials, sliding 1.2% each. The TSX Venture Exchange skidded 9.88 points to 1,637.62, while the Nasdaq Canada index jettisoned 13.89 points to 778.44. ON WALLSTREET In New York, stocks endured a lackluster start Thursday, as investors digested the latest round of earnings, mixed economic news and a renewed push for financial reform. The Dow Jones industrial average tumbled 88.04 points to 11,036.88. The S&P 500 index backtracked 12.85 points to 1,193.09. The Nasdaq composite index stumbled 28.08 points to 2,476.53. Microsoft and Amazon.com are among the companies due to report quarterly results after the closing bell. American Express will also post Thursday afternoon. Starbucks reported a jump in quarterly profit and raised its outlook for the year after U.S. markets closed Wednesday. The coffee retailer's results topped Wall Street's estimates. President Obama will make another push for tougher financial rules Wednesday. He is due to give a speech near the heart of Wall Street. On the economy, the U.S. government released reports on first-time claims for unemployment benefits, and inflation at the wholesale level before the market opened. There were a total of 456,000 initial jobless claims filed in the week ended April 17, down from the previous week's revised figure of 480,000, according to the Labor Department's weekly report. The report was roughly in line with expectations and marked the first time in three weeks that claims declined. Economists surveyed by Briefing.com had anticipated 455,000 initial claims. Separately, government figures showed inflation at the wholesale level rose more than expected in March. The Producer Price Index increased 0.7% last month after falling 0.6% in February. Economists were expecting a 0.5% rise in March. Still to come, the National Association of Realtors was expected to report that existing home sales rose to a 5.3-million-unit annualized rate from a 5.02-million-unit rate in February, according to economists' forecasts. The report was due at 10 a.m. ET. Treasury prices were stalled, maintaining the yield on the 10-year note to at 3.74%, where it was late Wednesday. The price of a barrel of oil gave back $1.81 to $81.87 U.S. Gold prices plunged $14 to $1,135 U.S. an ounce.

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