Canadian stocks are experiencing mild weakness on Tuesday, adding to losses from the previous session, amid fears over the swine flu's impact on the economic recovery. Toronto's main index has recovered some of its earlier losses after earlier hitting a six-day low.
The S&P/Composite Index has slipped 37.89 points or 0.4% to move at 9,356.91. The index had reached its highest level since November late last week.
The Gold Index is down 2%, while materials stocks have lost 1.6%. New Gold (NGD.TO) has declined 3.9%, Agnico-Eagles (AEM.TO) is down 3.5%, Barrick Gold (ABX.TO) has slipped 3.3%, Eldorado (ELD.TO) has declined 2.8% and Goldcorp (G.TO) is down 2.3%.
Energy stocks are down 1% with several big names reporting earnings. Petro-Canada (PCA.TO) is down 0.7% after it reported first quarter operating earnings of C$111 million or C$0.23 per share, down significantly from C$899 million or C$1.86 per share in the last year comparable quarter.
Nexen (NXY.TO) is down 1.6% after reporting first-quarter net income attributable to Nexen of C$135 million or C$0.26 per share, compared to net income of C$630 million or C$1.19 per share in the same quarter last year.
OPTI Canada (OPC.TO) has dropped 4.6% after the company reported first quarter net loss of C$97 million or C$0.50 per share, compared to restated net loss of C$6 million or C$0.03 per share last year.
Husky Energy (HSE.TO) is down 1.6% after the company reported net earnings of $328 million or $0.39 per share for the first quarter of 2009, down from $888 million or $1.05 per share in the prior-year quarter.
In other corporate news, Héroux-Devtek (HRX.TO) has added 2.2% after the company announced that Lockheed Martin Aeronautics Company has awarded the aerostructure division of Héroux-Devtek (Progressive Inc.), another multi-year contract to manufacture complex structural machined parts and assemblies for the F-35 Lightning II aircraft.
QLT Inc. (QLT.TO) is down 0.4% after the company reported first quarter net income of US$1.30 million or US$0.02 per share, compared to a net loss of US$10.47 million or US$0.14 per share last year.
Across the border, the Federal Reserve will begin their two-day meeting today, although little is expected to come out of the meeting, as the interest rate has already been lowered to a near zero range.
Toronto stocks dropped sharply on Monday, slipping away from the five-month high from the previous session. Worries over the swine flu raised fears of a slower global economic recovery. The S&P/TSX Composite Index fell 154.68 points or 1.61% to move at 9,394.80. The decline was the first in five days for Canada's main index.
The World Health Organization on Monday raised its pandemic alert level over swine flu outbreak that originated in Mexico from three to four after several cases of the flu was reported in countries outside North America, including Canada, Scotland and Spain.
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