January 16, 2013 at 12:00 PM EST
Stocks begin negative
Wednesday, January 16, 2013 10:14 AM EST Stocks begin negative Sour news from Europe Canada's main stock index slumped Wednesday, as investors turned wary following a sharp cut in the global growth outlook by the World Bank and dismal economic data from the euro-zone. The S&P/TSX Composite Index fell 55.89 points to start off Wednesday’s session at 12,586.08 Among companies, auto parts giant Magna International Inc, said it expects total sales of $31.3 billion to $32.7 billion U.S. for 2013. Magna shares deducted 13 cents in price to $51.05. Antrim Energy Inc. said production at more than 20 oilfields in the northern North Sea was disrupted after a hydrocarbon leak was detected in one of the legs of the Cormorant Alpha platform. Antrim shares lost two cents to 54 cents. CML HealthCare Inc. said it plans to sell its diagnostic imaging business and has started talks with potential buyers, three months after it agreed to sell its imaging business in Alberta for $17 million. CML shares fell 25 cents to $6.98. The World Bank said what it calls a frustratingly slow economic recovery in developed nations is holding back the global economy, as it sharply cut its outlook for world growth in 2013. The German government cut its 2013 economic growth forecast to 0.4% from a previous estimate of 1%, according to that country’s economy ministry. ON BAYSTREET The TSX Venture Exchange shaved off 1.08 points to 1,230.71 All but one of the 14 Toronto subgroups started the day negative. Metals and mining slipped 1.1%, health-care suffered 1% and global base metals ducked back 0.7%. Only a 1.3% surge by information technology issues held out against the negative tide. ON WALLSTREET Stocks were mixed soon after Wednesday's opening bell, as investors digest results from several major financial institutions. The Dow Jones Industrial Average fell 39.13 points to begin the day at 13,495.80 The S&P 500 slid 3.07 points to 1,469.27. The Nasdaq Composite squeezed up 1.52 points to 3,112.30 JPMorgan Chase beat expectations and posted earnings per share of $1.39 U.S. The company also revealed that the bonus of its chief executive, Jamie Dimon, was cut by more than half after the London Whale debacle over bad trades. Shares lost almost 1% in premarket trading. Goldman Sachs reported better-than-anticipated earnings of $5.60 U.S. per share, which boosted the stock more than 2% in early morning trading. Meanwhile, U.S. Bancorp earnings came in at 72 cents U.S. per share, in line with expectations, but shares fell nearly 1%. Charles Schwab reported before the opening bell. The financial sector is expected to lead the way in earnings growth, according to analysts. Overall, S&P 500 companies are expected to report earnings growth of 3.2% for the last three months of 2012, according to S&P's Capital IQ. Boeing shares were down more than 4% on Wednesday morning. Two Japanese airlines grounded their fleets of 787 aircraft after one of All Nippon Airways' Dreamliners was forced into an emergency landing. As for economic reports, the government's key measure of inflation showed that U.S. consumer prices slowed to a 1.7% annual increase last month -- mostly due to a decline in gas prices. Industrial production climbed 0.3% in December, in line with market expectations ahead of the report. November’s previously reported 1.1% gain was revised down slightly to 1.0%; however, October’s previously reported 0.7% drop was revised up to -0.3%. At 2 p.m. ET, the Federal Reserve will release its Beige Book, a survey of regional economies. Prices on the 10-year U.S. Treasury note gained some ground, lowering yields to 1.81% from Tuesday’s 1.83%. Treasury prices and yields move in opposite directions. Oil prices added 19 cents to $93.47 U.S. a barrel. Gold prices slid $8.10 an ounce to $1,675.80 U.S.
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