Toronto stocks are slightly lower on Tuesday, adding to sharp losses from the previous session. Investors mulled over a slew of corporate news as well as a surprise rate cut from the Bank of Canada.
The S&P/TSX Composite Index has slipped to 36.83 or 0.4% to move at 9,089.32. The index dropped to a 12-day low on Monday after hitting a multi-month high late last week.
The BoC announced Tuesday morning that it is lowering its target for the overnight rate by one-quarter of a percentage point to 0.25 percent. Most economists were predicting that the Bank would stand pat.
The Bank now expects the recovery to be delayed until the fourth quarter and to be more gradual. The economy is projected to grow by 2.5 percent in 2010 and 4.7 percent in 2011, and to reach its production capacity in the third quarter of 2011.
Industrials are down 1.2%. Canadian National Railway Company (CNR.TO) has slipped 0.3%. The company announced its first-quarter net income rose to C$424 million or C$0.90 per share for the quarter, up from C$311 million or C$0.64 per share in the prior-year period. Quarterly revenues declined to C$1.859 billion, down 4% from C$1.927 billion in the prior-year period, but exceeded Street estimate of C$1.68 billion.
Financials are down 1.1%, adding to sharp losses from Monday. Royal Bank (RY.TO) is down another 2.4%, while Toronto-Dominion (TD.TO) has lost 1.3%.
Energy stocks are down 0.6% as crude oil has dropped $1.28 to $44.60 on the NYMEX. Encana (ECA.TO) has lost 2.4%, while Savanna (SVY.TO) is down 2.3%.
UTS Energy Corp. (UTS) is down 1.6%. The company said it may get a higher takeover bid from ongoing discussions.
Teck Cominco (TCK.B.TO) is up 3% after reporting an 11% rise in sales. Teck Cominco's first-quarter net earnings were C$241 million or C$0.50 per share, down from C$345 million or C$0.78 per share, hurt by lower copper prices.
Duluth Metals Limited (DM.TO) has rallied 10.3% after the company announced the acquisition of 5,142 acres of prospective mineral leases within the Duluth Complex
On Monday, the S&P/TSX Composite Index fell 311.50 points or 3.3% to move at 9,126.15. The finish was the lowest since April 8 for Toronto's main index, which had reached a three-month high last week.
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