The Toronto stock market closed lower Wednesday despite a wave of positive Canadian earnings reports and indications that China's manufacturing slump may have bottomed out.
The S&P/TSX composite index fell for a fourth day, down 30.82 points to 12,195.02 with traders still focused on a slowing global economy. The TSX Venture Exchange was off 0.75 of a point at 1,288.75.
The Canadian dollar shed early gains to move down 0.22¢ to US100.51¢ amid weak commodity prices. It had earlier traded as high as US101.22¢, a day after the Bank of Canada maintained its bias toward future interest rate hikes and mentioned the possibility of high household debt levels playing a role in raising rates.
U.S. indexes were also lower on top of steep losses Tuesday after earnings disappointments from DuPont chemical and conglomerate 3M Inc. reinforced a gloomy view of global economic prospects.
The Dow Jones industrials declined 25.19 points to 13,077.34, the Nasdaq composite index was down 8.76 points to 2,981.7 and the S&P 500 index slipped 4.36 points to 1,408.75.
Meanwhile, the U.S. Federal Reserve took no new action during its two-day policy meeting. Having announced a third round of economic stimulus in September, it wants time to assess whether those steps will boost growth and job creation.
The base metals sector was up 1.32% as December copper was unchanged at US$3.56 a pound. Worries about deteriorating economic conditions pushed copper down 18¢ over the previous four sessions.
Teck Resources Ltd. shares were 85¢ higher at $31.39 as the Vancouver-based producer of copper, coal and other minerals announced plans to severely slash capital spending this year and next in the face of a slowing global economy. Teck also reported net income attributable to shareholders of $180 million or 31¢ per diluted share, compared with $814 million or $1.37 is the same 2011 period. Revenue was $2.5 billion, down from $3.38 billion.
The industrials sector rose 1.36% as Canadian Pacific Railway Ltd. said its third-quarter net income was $224 million, an increase of $37 million or 20%, and diluted earnings per share were $1.30, up 18% compared with a year earlier. Revenue was slightly above the consensus estimate and its shares ran up $5.29 to $93.18.
The telecom sector rose almost 1% while Rogers Communications Inc. shares gained $1.35 to $42.43 as the telecom posted net income of $495 million or 96¢ per share, 7¢ better than estimates and up from $489 million or 90¢ per share a year ago. Its revenue increased to $3.17 billion, up about 1% from the same time last year.
