09/27/2009 (6:03 pm)
Market retreats as RIM’s shares tumble
The Toronto stock market closed lower yesterday and lost ground for the week, weighed down by a sell-off of BlackBerry maker Research In Motion Ltd. stock after the market heavyweight delivered a disappointing earnings report.
The S&P/TSX composite index lost 73.37 points to close at 11,212.39, with market support coming from mining and consumer stocks in particular.
The TSX lost 233.56 points, or 2.04 per cent, this week amid worries about the sustainability of this year’s rally in the wake of a sharp drop in Canadian retail sales in July, a slide in American durable goods orders and news that reminded investors that a recovery in the housing sector will be difficult.
RIM shares tumbled $15.12 or 16.77 per cent to $75.04 after coming up short on expectations for revenue, new subscribers and outlook.
The Canadian dollar was 0.23 of a U.S. cent lower to 91.6 cents (U.S.)
The energy sector was ahead 0.38 per cent as oil prices rose slightly after demand concerns shaved almost $6 a barrel over the previous two sessions.
The November crude contract on the new York Mercantile Exchange was up 13 cents to $66.02 a barrel. The base metals sector was ahead 1 per cent as December copper added three cents at $2 faxless cash advance.74 a pound. The TSX Venture Exchange was up 3.28 points to 1,259.64.
New York markets were lower following more U.S. economic data that cast further doubt on the strength of an economic recovery.
The Dow Jones industrials index was down 42.25 points to 9,665.19 after the U.S. Commerce Department reported that orders for durable goods dropped 2.4 per cent in August, worse than the 0.5 per cent increase forecast.
The Nasdaq composite index was weighed down by RIM’s earnings report, falling 16.69 points to 2,090.92, while the S&P 500 index declined 6.4 points to 1,044.38.
The December gold contract on the Nymex declined $7.30 to $991.60 an ounce, taking the gold sector down 0.76 per cent. On the TSX, Goldcorp Inc. faded 90 cents to $42.05.
Strength came from the consumer staples sector, with Shoppers Drug Mart up 64 cents (Canadian) to $44.20 and Alimentation Couche Tard Inc. 67 cents higher at $19.30.
The financial sector was flat but Scotiabank ran ahead 61 cents to $47.69.
The Canadian Press
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