Dec. 8, 2009 (Baystreet.ca) --
Canadian stocks are notably lower again Tuesday, dragged into the red by a disappointing earnings report from Scotiabank and lower commodity prices.
At noon ET, the S&P/TSX Composite Index was off its lows of the morning, but still down 69.90 points to 11,419.73.
Meanwhile, the Bank of Canada maintained its key interest rate at a record low of 0.25% and reiterated that it expects to leave the rate at its current level until the end of the second quarter of 2010.
Financials are down, as Scotiabank has slipped 2.2% after the company reported fourth quarter net income of $853 million or $0.83 per share, compared to $283 million or $0.28 per share last year. Analysts were looking for EPS of $0.87.
Quest Capital Corp. is up 0.9% after the company announced that it has made a second $10 million payment toward the repurchase and retirement of its First Preferred Shares, Series A, leaving an outstanding balance of $20 million of Preferred Shares.
UTS Energy Corp said effective December 31, Dennis Sharp will step down as Chairman and will continue to serve as a director of UTS. Sharp has been Chairman of the UTS Board of Directors since 2006. The stock is down 0.9%.
Eldorado Gold announced that Earl Price will retire as the company's Chief Financial Officer, effective December 31. The company has appointed Ed Miu as his successor. Shares are down 1.2%.
Equinox Minerals has added 1.5% after the company announced that it has appointed Colin Johnstone as the company's chief operating officer, effective from January 2010.
Teck Resources has slipped 0.8% after the company said it expects coal production of 20 million tonnes and sales of 19.5 to 20 million tonnes for 2009, at the lower end of previously announced guidance.
Meanwhile, the Canada Mortgage and Housing Corporation reported Canadian housing starts rose to 158,500 units, from 157,400 in the prior month.
The Canadian dollar stumbled 0.74 cents to 94.29 cents U.S.
ON BAYSTREET
All but four of the 14 TSX subgroups remained in negative country by midday. Financials were the worst off, losing 1.4%, followed by gold, off 1.2% and energy, retreating 1.1%.
The three gainers were information technology, which was ahead 0.6%, health-care, 0.2% stronger, and telecoms, inching up 0.1%.
Industrials were flat in the early afternoon sun.
The TSX Venture Exchange skidded 20.18 to 1,414.22, while the Nasdaq Canada index was up 8.44 points to 679.82.
ON WALLSTREET
In New York, stocks tumbled Tuesday morning after global markets slumped, the dollar firmed up, oil and gold prices slipped and profit news from Dow components 3M and McDonald's provided disappointment.
The Dow Jones Industrials approached noon behind Monday's close by 83.74 points to 10,306.37, while the S&P 500 faded 7.82 points to 1,095.43, while the Nasdaq gave back 5.49 points to 2,184.12.
Stocks ended mixed Monday as comments from Federal Reserve Chairman Ben Bernanke cooled worries about higher interest rates and failed to overshadow a stronger dollar and weaker commodities.
The weak dollar has added to stock gains over the last nine months, but for the last two weeks, the greenback has started to make a comeback versus the euro. The U.S. dollar has remained weak against the yen.
A stronger dollar was again a factor Tuesday, dragging on dollar-traded commodities and commodity stocks, as well as companies that do a lot of business overseas and therefore benefit from a weak dollar.
Investors were also reacting to news overseas.
Dubai debt worries resurfaced after a credit rating agency reportedly cut its ratings on six Dubai state-connected companies.
Global investors got a jolt late last month after the Dubai government asked to defer payments for at least six months on $60 billion U.S. in debt owed by Dubai World, the city-state's main investment arm, and Nakheel, its real estate arm.
President Obama was speaking about the economy at the Brookings Institution in Washington, just before noon ET. He was expected to say he agrees with a House of Representatives plan to spend $200 billion U.S. in unallocated bailout funds on a program to create new jobs.
Dow component 3M issued a 2010 profit forecast in a range that meets or beats analysts' expectations. The diversified conglomerate also reiterated that 2009 earnings would fall in a range of $4.50 to $4.55 U.S. per share versus analysts' forecasts of $4.57 U.S. Shares fell 2%.
Fellow Dow component McDonald's said sales at U.S. stores open a year or more fell 0.6% in November, the second monthly decline in a row.
Treasury prices shot higher, dropping yields to 3.39% from Monday's 3.43%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil lost $1.08 to 72.83 cents U.S.
Gold prices skidded $14 to $1,150 an ounce U.S.
