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TSX suffers from earnings misses

January 24, 2014

Natural Resources, P&G in focus The Toronto stock market plunged Friday amid worries about a slowdown in China's economy and fourth-quarter earnings in the U.S. that haven't quite met expectations. The S&P/TSX composite index fell 228.38 points, or 1.6%, to greet noon at 13,704.59 The Canadian dollar fell again 0.30 cents to 90.38 cents U.S. The energy sector lost ground with Canadian Natural Resources giving back 37 cents to $35.81 . Financials also weighed with Manulife Financial down 44 cents to $21.36 . Among metals and mining issues, Capstone Mining took it on the chin, losing 20 cents , or 6.4%, to $2.91 , and Thompson Creek Mines plummeted 15 cents , or 5%, to $2.85 . The gold sector lost ground, though Barrick Gold gained 47 cents to $21.90 . One of the few bright spots came from techs, with Open Text streaming higher 11.6%, or $11.63 , to $111.82 . On the economic calendar, Statistics Canada reported that consumer prices –jumped 1.2% in December. On a seasonally adjusted monthly basis, the Consumer Price Index increased 0.2% in December, matching the rise in November. ON BAYSTREET The TSX Venture Exchange weakened 19 points to 964.39 All but two of the 14 Toronto subgroups were lower, weighed mostly by the metals and mining group, down 4.1%, while global base metals ducked back 3.7%, and materials skidded 3.3%. The two gainers were in information technology, up 0.8%, and utilities, ahead 0.2%. ON WALLSTREET It's another ugly day on Wall Street -- and for markets around the globe. The Dow Jones Industrial Average plummeted 201.42 points, or 1.2%, to pause for lunch at 15,995.93 The S&P 500 index faded 23.71 points to 1,804.75. The NASDAQ drifted lower 59.42 points to 4,159.56, despite a jump in shares of Microsoft following strong quarterly sales and earnings. The losses come at the end of what could wind up being the worst week for stocks so far this year. The Dow has declined more than 2%. The NASDAQ is on pace for its first weekly decline of the year. News from Corporate America wasn't helping. After last year's big rally, investors are looking for signs the economy will be strong enough to keep the bull market going but so far, this earnings season has been decent, as opposed to spectacular. Of the S&P 500 companies, 102 have reported fourth-quarter results, with only 66 beating analysts' estimates, according to S&P Capital IQ. Of the remainder, 26 have missed, and 10 have met expectations. Xerox shares took a dive after the copy machine company reported declines in quarterly revenue and profit. Honeywell shares were also down as the defense contractor reported a slip in quarterly sales. Procter & Gamble was on of the few bright spots in the market Friday. The stock rose nearly 4% after reporting quarterly profits that, while lower than a year ago, beat estimates. Prices for 10-year U.S. Treasuries gained, lowering yields to 2.73% from Thursday's 2.77%. Treasury prices and yields move in opposite directions. Oil prices doffed 60 cents to $96.72 U.S. a barrel. Gold prices grew $4.80 to $1,267.10 U.S. an ounce.

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Source: Baystreet Stock Market Update (Canada)

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