Feb. 10, 2009 (Baystreet.ca) --
11:07 am EST
The jitters continued at the opening bell Thursday, over whether the stimulus package for the U.S. economy will work as effectively, and as soon, as intended.
The S&P TSX Composite Index tripped and fell 102.44 in the first half-hour to 8,635.45
The TSX energy sector stubbed its toes, as shares in Nexen Inc. were down 42 cents to $17.01 after the company recorded a quarterly loss of $181 million, reversing year-earlier profits of $194 million.
Nexen said quarterly results were hurt by approximately $318 million in impairment charges related to its properties in the North Sea and the Gulf of Mexico.
EnCana Corp.reported that fourth-quarter earnings slipped to $1.07 billion U.S. from $1.08 billion recorded a year ago. Earnings per share remained flat at $1.43. Quarterly cash flow fell to $1.3 billion from year-earlier levels of $1.9 billion. Full-year earnings grew to $5.9 billion, up from profits of $3.96 billion recorded in 2007 and its shares were off 62 cents to $52.50.
The financial sector was down with Royal Bank down 38 cents to $29.97.
Shares in Sun Life Financial Inc. declined $1.17 to $21.83 after it said quarterly earnings slid to $129 million or 23 cents per share, down from year-earlier profits of $555 million or 97 cents per share. Quarterly revenue came in at $4.7 billion, down from $5.4 billion reported during the same period in 2007.
Full-year earnings shrank to $785 million or $1.37 per share from 2007 profits of $2.2 billion or $3.85 per share.
Manulife Financial Corp. lost $1.87 billion in the fourth quarter - even worse than the $1.5-billion loss estimated in early December. The big life insurer said Thursday its full-year earnings dropped to $517 million, down 88% from $4.3 billion in 2007 and its shares moved 54 cents lower to $18.82.
Gildan Activewear Inc. shares plunged $3.29 or 25% to $9.26 after it reported it earned $4.3 million U.S. in its most recent quarter as sales sagged 26.5% from a year earlier to $184 million U.S.
The sock and T-shirt maker, which keeps its accounts in U.S. dollars, said the profit in its seasonally slow first quarter compared with a year-ago profit of $27.9 million.
Yellow Pages Income Fund units rose 25 cents to $5.47 as the company said that fourth-quarter profit was down to $100 million from $157 million a year ago on higher income tax provisions and restructuring charges. Revenues rose to $425.6 million from $412.6 million while full-year profit came in at $509.2 million, including restructuring and special charges, compared to $527.7 million in 2007.
The Canadian dollar tailed off 0.29 cents to 80.23 cents U.S.
BAYSTREET
Decliners dominated the 13 TSX sub-groups, 11 to two. Financials took the biggest lumps, down 2.5%, energy stocks next at 2.1% and industrials were off 1.6%.
The two gainers were telecoms, up 0.5% and utilities, up 0.4%.
The TSX Venture Exchange picked up nearly a full point to 912.25 while the NASDAQ Canada index regained 5.60 points, to 501.13
ON WALLSTREET
The Dow Jones industrials index retreated 172.35 points to 7,767.18. The Standard & Poor's 500 index skidded 17.31 points to 816.43, while the NASDAQ composite index gave back 20.27 to 1,510.23.
In economic news, U.S. retail sales jumped 1% in January, reversing a six-month declining trend and defying economists' expectations by posting the biggest increase in 14 months.
The U.S. Commerce Department says January retail sales rose 1% from December after having fallen for six straight months. Economists had expected January sales to show a drop of 0.8%.
The January report shows strong increases in sales of automobiles and in general merchandise stores though sales by department stores, carrying fewer varieties of items, posted a decline.
Washington also released its weekly report on initial unemployment filings, showing 623,000 claims filed in the week ended Feb. 7. This is down from the revised tally of 631,000 the prior week.
Economists had expected claims to have dropped to 610,000 in the week ended Feb. 7.
Investors are still juggling concerns about the U.S. economy even as the Congress struck a deal on a $789-billion U.S. economic stimulus plan.
Investors are hoping the stimulus plan's mix of spending and tax cuts will be able to help revive an economy mired in its worst recession in generations.
The House of Representatives could vote on the measure as soon as Thursday, though Friday seemed more likely.
But investors are still disappointed with the lack of details contained in Tuesday's announcement on the government's latest plans to overhaul the second half of its $700-billion U.S. financial rescue fund.
In company news, homebuilder Toll Brothers warned late Wednesday that revenue from building homes will decline by more than half for the quarter ended Jan. 31. The company said home production is at its lowest level in 50 years. Shares fell 2.5% in early trading.
Alcoa announced the sale of its stake in mining company Rio Tinto to Aluminum Corp. of China for $1 billion U.S., well above its $300-million current value. Shares of Alcoa, which is trying to boost its balance sheet, slipped in early trading.
The March crude contract in New York moved down $1.26 to $34.68 U.S. a barrel.
The April bullion contract in New York was up $1.40 to $945.90 U.S. an ounce