RTTNews - Bay Street stocks moved to the downside on Wednesday as financials are lower ahead of some earnings reports from the big banks later in the week. With the drop, Toronto's main index has backed off a multi-month high from the previous session.

The S&P/TSX Composite Index has lost 70.11 points or 0.68% to 1,0215.79. The index is on pace for just its second negative close in seven sessions.

Financials are down 2.3%. Bank of Montreal (BMO.TO) has dropped 3.6%, giving back some of the gains it saw yesterday after reporting quarterly earnings that topped analysts' expectations.

Toronto-Dominion (TD.TO) has declined 2.9%, Royal Bank (RY.TO) has dropped 2.3%, National Bank (NA.TO) and CIBC (CM.TO) have each dropped 2.1% and Scotiabank (BNS.TO) has lost 2%.

Gold stocks are down 1.2% as gold finished flat for the session. Eldorado (ELD.TO) has dropped 1.5% and Barrick Gold (ABX.TO) is down 1.3%.

Virginia Mines (VGQ.TO) announced it has agreed to sell its interest in 52 mining claims in Quebec to Agnico-Eagle Mines for $1 million in shares. Virginia Mines shares have added 5.9%, while Agnico-Eagle Mines has dropped 2.2%.

In other corporate news, Angiotech Pharmaceuticals (ANP.TO) has soared 28.8% after the company said that its corporate partner, Boston Scientific Corp.(BSX) received FDA approval for its drug-eluting stent, Taxus Liberte Atom Paclitaxel-Eluting Coronary Stent System, used in the treatment of small coronary vessels.

Laurentian Bank (LB.TO) is down 3.6% after the company reported second quarter net income of C$21.2 million or C$0.76 per share, compared to C$25.1 million or C$0.93 per share in the second quarter last year.

TransAlta Corp. (TA.TO) is flat as the company priced an offering of $200 million of 6.45% senior notes due in 2014. The senior notes were priced at 99.823% for yield to maturity of 6.49%. The notes are rated stable by Standard & Poor's Rating Services.

Zarlink Semiconductor (ZL.TO) has rallied 16.9% after reporting its second-quarter revenues swelled to US$227.2 million US$183.6 million a year ago. Hurt by charges, net loss per share widened to US$0.41 from US$0.16 last year.

Meanwhile, beleaguered General Motors (GM) is on the brink of bankruptcy. This morning, GM indicated that its bondholders have rejected the embattled automaker's debt-for-stock offer.

In economic news across the border, industry data showed that existing home sales rose 2.9 percent to an annual rate of 4.68 million units in April from a downwardly revised rate of 4.55 million units in March. Despite the monthly increase, existing home sales were down 3.5 percent year-over-year.

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