TORONTO - The hunt for stock market confidence faced new hurdles Tuesday as bad earnings reports and weakening commodity prices left key indexes losing ground.
Toronto's S&P/TSX composite index fell 264.80 points to end the session at 9,424 on overall weakness headed by metals and materials stocks.
The TSX diversified metals sector slid 10.6 per cent. Teck Cominco Ltd. (TSX:TCK.B) was down 20 per cent, losing $2.20 to $8.75.
The company issued a statement just minutes before the end of trading to dispel rumours that it's planning to issue more equity -- which would be dilutive to current shareholders. Instead, Teck said it's planning asset sales and debt financing to reduce a bridge loan.
Energy stocks declined 4.5 per cent with crude oil closing under US$60 a barrel for the first time in nearly two years.
The crude futures contract briefly touched their lowest level in 21 months -- down to $58.32 -- but regained some ground to close 4.9 per cent lower, or down $3.08, to US$59.33.
The gold sector fell 3.7 per cent as bullion fell $13.70 to US$732.80 an ounce on the New York Mercantile Exchange. Silver, platinum and copper futures were all at last four per cent lower.
A report from the Bank of Montreal said Canada's resource boom is over and won't return for at least another year, mostly because of the U.S. recession and weakening demand from countries like China.
On Wall Street, the Dow Jones industrial average declined 176.58 points to 8,693.96. The Nasdaq composite lost 35.84 to 1,580.90 while the S&P 500 surrendered 20.26 to 898.95.
Stock-market volume was light as bond markets were closed for Remembrance Day in Canada and Veterans Day in the United States, and no government economic reports were scheduled. But the lack of economic data didn't slow worries that the U.S. economy is facing a rough ride next year.
"We're in a situation where we really don't know how deep a recession we're in," said Jim Herrick, manager of equity trading at Baird & Co. "Until there's some clarity on the economy and clarity with earnings, we'll definitely be stuck in this trading range."
The Canadian dollar was down 0.30 of a cent at 83.28 cents US, trading on international markets because Canadian banks were closed.
The TSX Venture Exchange gained 41.69 points to 872.33.
In corporate news, Rona Inc. (TSX:RON) reported a 10 per cent decline in summer-quarter profit to $53.4 million as sales at stores open a year or more declined 2.3 per cent. But the quarter was better than expected and Rona stock gained five per cent, climbing 55 cents to $11.70.
High fuel costs and a weaker Canadian dollar dropped Air Canada parent ACE Aviation (TSX:ACE.B) to a $135-million third-quarter loss. ACE shares fell to new lows, down 61 cents or 13.6 per cent to $3.89.
Cameco Corp. (TSX:CCO) said it's looking to cut costs after a 46 per cent slump in adjusted third-quarter profit, and its shares were down $1.14 to $18.60.
Wenzel Downhole Tools Ltd. (TSX:WZL) reported that third-quarter revenue rose to $17.2 million from $11.2 million, and it earned $3.8 million, up from barely break-even a year earlier. Wenzel shares rose 7.6 per cent, or nine cents, to $1.27.
CI Financial Income Fund (TSX:CIX.UN), one of Canada's largest mutual fund companies, says its third-quarter net income fell by 17.8 per cent to $118.1 million. Units of the fund slid 31 cents to $15.45.
In the U.S., homebuilder Toll Brothers Inc. held out little hope for a profit in 2009, while Starbucks Corp. reported tepid sales and weak earnings.
Third-quarter earnings declines at Vodafone Group PLC, the world's biggest mobile phone company by sales, and InterContinental Hotels Group PLC, the owner of the Holiday Inn chain, revealed sharp pullbacks in consumer spending.
In Britain, retail sales fell in October for the first time in 3 1/2 years, while the number of home sales in England and Wales dropped to a record low.
Overseas stock markets were sharply lower. Losses in Asia contrasted with big gains Monday on news of Beijing's four-trillion-yuan (US$586-billion) government spending package.
