Feb. 23, 2010 (Baystreet.ca) --
Toronto's main index opened in the negative territory Tuesday, and extended losses in mid-morning deals, weighed down by weakness in financials, resources and technology stocks.
The S&P/TSX composite index was down 113.26 points, or 1%, by lunchtime to 11,521.39. The index had risen over 5% in eight days since February 8, before ending the spell of gains on Monday. A downbeat consumer confidence report from the U.S. also dampened the sentiment.
The Financials Index was down, with Laurentian Bank of Canada losing 1.03% and Royal Bank of Canada easing 1.47%. Intact Financial Corp. gained 1.13%.
The Energy Index lost ground, as Cenovus Energy Inc. was down 3.71% and Suncor Energy Inc. shed 1.58%.
Energy infrastructure company TransCanada Corporation, which reported fourth-quarter net income applicable to common shares of $381 million, compared to $277 million for the prior-year quarter, added 0.20%.
Among gold stocks, Goldcorp Inc. gave in 2.57% and Iamgold Corp. lost 3.48%.
The Diversified Metals Index was down, with Equinox Minerals Ltd. losing 4.64% and Teck Resources Ltd. gave in 3.85%.
In the technology sector, Celestica Inc. lost 1.17% and Research In Motion eased 0.55%.
MOSAID Technologies Inc., which announced the closing of its previously announced bought deal financing for aggregate gross proceeds of approximately $31.0 million, shed 2.62%.
Sears Canada Inc. rose 0.97% after the multi-channel retailer reported a rise in fourth quarter net earnings to $128.2 million from $99.1 million last year.
Chariot Resources Ltd. surged 7.27% after the Toronto-based miner said it started exclusive negotiations with a third party regarding a potential takeover of the firm.
The Canadian dollar slid 0.81 cents to 95.09 cents U.S.
ON BAYSTREET
All 14 TSX subgroups suffered losses by midday in Toronto. Metals and mining stocks took the biggest dive, at 2.1%, followed by materials and gold stocks, off 1.8% each.
The TSX Venture Exchange stumbled 10.74 points to 1,517.73, while the Nasdaq Canada index lost 12.54 points to 733.34.
ON WALLSTREET
In New York, equities slumped Tuesday morning after a key measure of consumer confidence plunged sharply, reflecting investors' growing pessimism about the strength of the economic recovery.
The Dow Jones industrial average fell 63.71 points by noon to 10,319.67. The S&P 500 index tailed off 10.03 points to 1,097.98, and the Nasdaq composite fell back 29.10 points to 2,212.93.
Stocks swayed on both sides of uneven in the early going, but turned lower after the release of the Consumer Confidence index. The Conference Board said its index fell to 46.0 in February from 56.5 in January. Economists surveyed by Briefing.com thought it would fall to 55.
Stocks have been volatile lately, with the major gauges declining for four weeks, advancing for two weeks and then slipping again Monday. Stocks ended a choppy session lower Monday despite some upbeat earnings news and Schlumberger's $11-billion U.S. buyout of oil services rival Smith International.
Tuesday looked to be similarly volatile as investors weighed the earnings news with the latest readings on the economy.
Elsewhere economically, investors were hardly encouraged by the latest reading from the housing front as home prices fell 2.5% during the final three months of 2009, according to the S&P/Case-Shiller Home Price Index released Tuesday.
The latest numbers suggest that the decline in home values seen over the last several years may finally be stabilizing.
Perhaps the focus of the week will come Wednesday when Federal Reserve Chairman Ben Bernanke appears to testify on Capitol Hill.
Both lawmakers and Wall Street have been trying to get a better sense about how the central bank chief plans to exit some of the various emergency programs that were put in place during the crisis.
Last week, Fed policymakers unexpectedly raised the rate it charges banks that borrow from the central bank when they run short of funds. The move was viewed as largely symbolic since banks do very little borrowing at the discount window.
On the jobs front, the Senate voted Monday to move forward on a $15-billion U.S. jobs creation bill that would give businesses a tax break for hiring the unemployed and fund highway and transit programs through 2010.
Toyota executives make their first in a series of appearances on Capitol Hill Tuesday, as the head of U.S. sales for the Japanese automaker is set to appear before a House Energy Committee subpanel.
On Wednesday, Toyota president Akio Toyoda will appear before the House Oversight Committee.
Home Depot swung to a fiscal fourth-quarter profit Tuesday, as the home improvement store giant managed to beat analyst expectations.
And the operator of Sears and Kmart stores, Sears Holdings reported that its profit more than doubled in the latest quarter, helped by stronger sales.
Discounter Target also reported better-than-expected numbers, citing stronger holiday sales.
Treasury prices increased, lowering the yield on the 10-year note to 3.72% from 3.79% late Monday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil moved downward $1.27 to $79.04 U.S.
Gold prices gave back eight dollars to $1,106 U.S.
