{"id":10491,"date":"2014-05-15T23:18:10","date_gmt":"2014-05-15T15:18:10","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=10491"},"modified":"2014-05-15T23:18:10","modified_gmt":"2014-05-15T15:18:10","slug":"toronto-stock-market-declines-amid-weak-earnings-european-growth-data","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2014\/05\/15\/toronto-stock-market-declines-amid-weak-earnings-european-growth-data\/","title":{"rendered":"Toronto stock market declines amid weak earnings, European growth data"},"content":{"rendered":"

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TORONTO\u2014The Toronto stock market was sharply lower Thursday amid data showing the economic recovery in the European Union proceeding at a slower than expected pace and a disappointing outlook from retail giant Wal-Mart stores.<\/span><\/p>\n

The S&P\/TSX composite index dropped 120.35 points to 14,553.38.<\/span><\/p>\n

The Canadian dollar was up 0.06 of a cent to 91.95 cents US.<\/span><\/p>\n

U.S. indexes were deep in the red as the Dow Jones industrials tumbled 142.72 points to 16,471.25, the Nasdaq was down 49.96 points to 4,050.67 and the S&P 500 index dropped 18.6 points to 1,869.93.<\/span><\/p>\n

Wal-Mart earned $3.59 billion, or $1.11 per share, for the period ended April 30, down from $3.78 billion, or $1.14 per share a year ago as bad winter weather kept shoppers away from its stores and pushed operating expenses higher than expected. Its performance missed Wall Street\u2019s view, and the world\u2019s biggest retailer gave a second-quarter earnings forecast below analysts\u2019 estimates. Wal-Mart\u2019s stock fell 1.89 per cent to US$77.25.<\/span><\/p>\n

And in Canada, Air Canada (TSX:AC.B) posted a quarterly net loss of $341 million, or $1.20 per diluted share, as it was impacted by a lower Canadian dollar. That compares with a net loss of $260 million, or 95 cents a year earlier. The airline says the net loss in the first quarter included foreign exchange losses of $161 million as the Canadian dollar fell about four per cent against the greenback. On an adjusted basis, the airline reported a net loss of $132 million, or 46 cents per diluted share, compared with a net loss of $143 million, or 52 cents per share, year-over-year. Its shares slipped 48 cents or 5.84 per cent to $7.74.<\/span><\/p>\n

Meanwhile, Eurostat, the EU\u2019s statistics office, said the economy of the 18 countries that share the euro saw economic output grew by only 0.2 per cent in the first quarter from the previous three-month period. Economists had expected a 0.4 per cent increase.<\/span><\/p>\n

A large chunk of the blame for the underperformance can be placed on a flat performance in France, Europe\u2019s second largest economy behind Germany.<\/span><\/p>\n

The figures are likely to strengthen arguments for the European Central Bank to cut interest rates and take further stimulus measure at its next meeting June 5.<\/span><\/p>\n

Elsewhere on the corporate front, Scotiabank (TSX:BNS) wants to sell some or all of its 37 per cent stake in asset manager CI Financial Corp. (TSX:CIX). That position, acquired in 2008, is worth about $3.8 billion and the bank believes it can more profitably deploy the capital elsewhere. CI Financial shares fell $2.19 or 6.06 per cent to C$33.94.<\/span><\/p>\n

The tech sector was the biggest percentage decliner, down two per cent as CGI Group (TSX:GIB.A) fell $1.21 to $35.62.<\/span><\/p>\n

The energy sector fell 1.55 per cent as June crude on the New York Mercantile Exchange fell 51 cents to US$101.86 a barrel.<\/span><\/p>\n

July copper was down a penny at US$3.15 a pound and the base metals sector also eased 1.55 per cent.<\/span><\/p>\n

The gold sector was down 0.8 per cent while June bullion dropped $7.30 to US$1,298.60 an ounce.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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