Sunday, October 4th15.5°C

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

Recent Trending

Today's Market
S&P TSX13339.74+97.85
S&P CDNX525.56-0.33
S&P 5001951.36+27.54
CDN Dollar0.7590-0.0012
Natural Gas2.459+0.026

Okanagan Companies
Pacific Safety0.215+0.000
QHR Technologies Inc1.19+0.01
Metalex Ventures0.06+0.00
Russel Metals21.48-0.07
Copper Mountain Mining0.42+0.03
Colorado Resources0.08+0.01
ReliaBrand Inc0.004-0.000
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.095+0.005
Decisive Dividend Corp3.49+0.45
Diamcor Mining0.90+0.02



2337076833 McCurdy Road
4 bedrooms 3 baths
more details
Click here to feature your property
Please wait... loading

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

Collateral mortgage

Photo: Thinkstock.comMost of the time I recommend that my clients not take a collateral type mortgage product, as it locks you in with the current lender and at maturity the mortgage is costly to tran...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...




Member of BC Press Council