Newspaper article The Canadian Press

TSX Slides amid Deepening European Economic Slump, Slowing U.S. Job Growth: TSX Drops amid Slumping Commodities

Newspaper article The Canadian Press

TSX Slides amid Deepening European Economic Slump, Slowing U.S. Job Growth: TSX Drops amid Slumping Commodities

Article excerpt

TORONTO - The Toronto stock market closed well in the red Wednesday as a pair of reports cast doubt on the health of the economic recovery and pushed prices for oil and metals lower.

Manufacturing data illustrated how the eurozone economic crisis is worsening while another report highlighted slowing job creation in the U.S.

The resource-intensive S&P/TSX composite index fell 102.66 points to 12,230.12 as traders also took in some earnings disappointments while the TSX Venture Exchange slipped 0.24 of a point to 1,431.44.

Barrick Gold Corp. (TSX:ABX) shares fell $1.09 to $38.80 as the world's biggest gold miner reported quarterly net earnings of $1.03 billion, or $1.03 per share, up from US$1 billion or $1 per share a year earlier.

But Barrick's adjusted profit was US$1.11 a share, which missed analyst estimates by two cents. Barrick is also raising its dividend 33 per cent to 20 cents a share.

Loblaw Companies Ltd. (TSX:L) shares dropped 22 cents to $33.09 as its first-quarter profit was down 22 per cent from the same time last year at $126 million or 45 cents per share, before adjustments. Revenue was up about one per cent, rising just above $6.9 billion for the quarter.

The Canadian dollar was down 0.07 of a cent to 101.37 cents US.

U.S. markets were mainly lower after payroll firm ADP reported that the American economy cranked out only 119,000 private sector jobs in April, well below the consensus estimate of 170,000. The report was released two days before the U.S. government non-farm payrolls report for April comes out. Economists are looking for the U.S. economy to have created about 160,000 jobs last month.

The New York indexes closed well off the worst levels of the session with the Dow Jones industrial average declining 10.75 points to 13,268.57.

The Nasdaq composite index was up 9.41 points to 3,059.85 and the S&P 500 index slipped 3.51 points to 1,402.31.

Prices for oil and metals backtracked amid reports showing that manufacturing activity across the eurozone shrank at a faster pace than previously estimated in April.

The final April Markit purchasing managers index fell to 45.9 from a reading of 47.7 in March and was below an earlier estimate of 46. A reading of less than 50 indicates a contraction in activity.

The data showed accelerating downturns for Italy, Spain and Greece.

But even eurozone powerhouse Germany saw shrinking activity as its manufacturing PMI fell to a 33-month low at 46.2.

The tech sector was the biggest percentage decliner as shares in Research In Motion Ltd. (TSX:RIM) fell 68 cents or 5.11 per cent to $12.63. The drop comes on top of a decline of almost six per cent Tuesday after RIM unveiled its new BlackBerry 10 operating system.

The base metals sector fell 2.2 per cent as prices for copper, viewed as an economic bellwether since the metal is used in so many industries, also gave up ground. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.