Monday, April 27th11.1°C
25858
24806

TSX moves lower amid mixed earnings reports, glum economic forecast

TORONTO - The Toronto stock market closed lower Tuesday amid a heavy slate of earnings and a forecast that sees slower global economic growth.

The S&P/TSX composite index declined 84.74 points to 14,612.29.

The Canadian dollar was ahead 0.61 of a cent to 91.92 cents US.

U.S. indexes were also well into negative territory with the Dow Jones industrials down 129.53 points to 16,401.02, the Nasdaq off 57.3 points at 4,080.76 and the S&P 500 index 16.94 points lower at 1,867.72.

The Organization for Economic Co-operation and Development said the global economy will grow by 3.4 per cent this year, down from its forecast of 3.6 per cent growth last November.

The OECD, a think-tank for the world’s most developed countries, cut China’s growth forecast this year to 7.4 per cent from 8.2 per cent in November. Meanwhile, the U.S. economy is forecast to grow 2.6 per cent this year against last November’s 2.9 per cent estimate.

The news is better for Canada: economic growth is projected to accelerate to 2.75 per cent by 2015.

On the earnings front, BCE Inc. (TSX:BCE) posted quarterly net earnings of $615 million, up 8.7 per cent from a year ago, led by growth in its wireless and media divisions. Adjusted net earnings were $626 million or 81 cents, up 4.5 per cent from a year ago and five cents better than forecast, but its shares lost 46 cents to $48.50 as revenue missed expectations.

Also, subsidiary Bell added 33,964 postpaid net wireless customers, mostly smartphone subscribers on two-year contracts, down from 59,497 in the same quarter last year.

"The story here is wireline is in a secular decline and wireless, with the price increases, it is showing signs of a slowdown," said Ben Jang, portfolio manager at Nicola Wealth Management in Vancouver.

"So, from an investment point of view, really, at these levels, the share price is quite fairly valued and I think you see that in the whole telecom space (and) sector valuations lack upside from here."

WestJet (TSX:WJA) recorded quarterly net earnings of $89.3 million, or 69 cents per diluted share, compared with $91.1 million, or 69 cents a year ago. WestJet says total revenue totalled $1.042 billion, a gain of 7.7 per cent over the same period of 2013. WestJet shares dropped 55 cents to $24.42.

The tech sector led TSX decliners, down two per cent with BlackBerry (TSX:BB) falling 33 cents to $8.35.

In New York, the rotation from expensive biotech and technology shares resumed and shares in Twitter plunged $6.90, or 17.8 per cent, to $31.85 after company insiders were allowed to sell stock for the first time since the company’s initial public offering in November. Facebook fell 4.4 per cent while Netflix shed 5.3 per cent.

The base metals sector dropped 0.94 per cent with July copper unchanged at US$3.06 a pound.

June bullion faded 70 cents to US$1,308.60 and the gold sector shed about 0.9 per cent.

The energy sector was off 0.24 per cent while June crude in New York added two cents to US$99.50 a barrel.

The Canadian Press


Read more Business News

25866


Recent Trending




Today's Market
S&P TSX15402.20-6.13
S&P CDNX696.03-1.67
DJIA18134.85+54.71
Nasdaq5102.73+10.65
S&P 5002121.76+4.07
CDN Dollar0.8264+0.0059
Gold1197.90+22.70
Oil55.50-0.88
Lumber254.90-3.60
Natural Gas2.458-0.073

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.442+0.012
Metalex Ventures0.11+0.02
Russel Metals27.20+0.04
Copper Mountain Mining1.26+0.11
Colorado Resources0.095+0.000
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.215+0.015
Decisive Dividend Corporation1.80+0.10

 



25849

FEATURED Property
22793501489 Rose Meadow Drive,
4 bedrooms 4 baths
$484,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_



25482




Member of BC Press Council


24697