TSX down in broad decline, Rogers beat expectations; N.Y. lower on consumer data

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(The Canadian Press)

By Malcolm Morrison, The Canadian Press

TORONTO - The Toronto stock market was sharply lower for a third session as all sectors sold off with the exception of the telecom sector, which was supported by better-than-expected earnings from Rogers Communications (TSX: RCI-B.TO).

The S&P/TSX composite index fell 88.8 points to 11,146.1. The main index lost about 300 points in the past two sessions on worries that the market has gotten ahead of an economic rebound.

The Canadian dollar was down a quarter of a cent to 93.47 cents after a stronger greenback pushed the loonie down about 1.3 cents US on Monday.

Rogers shares were up 97 cents to $29.87 after the telecom company reported quarterly net income of $485 million or 79 cents a share, compared to year-earlier earnings of $495 million or 78 cents a share. After adjustments, net income totalled $505 million or 82 cents a share, up from 73 cents a year earlier and well above analyst expectations of 54 cents per share. Revenue at the wireless division was up seven per cent, fuelled by growth in postpaid subscriptions attributed to the popularity of the Apple iPhone.

Canadian Pacific Railway Ltd. (TSX: CP.TO) said that third-quarter net income rose to $195.4 million or $1.16 cents a share, up from $170.7 million or $1.10 cents a share a year ago. However, revenue fell to under $1.1 billion from over $1.3 billion a year ago and its shares dipped 88 cents to $47.85.

The TSX energy sector was off 0.75 per cent as the December crude contract on the New York Mercantile Exchange fell 47 cents to US$78.21 a barrel. Suncor Inc. (TSX: SU.TO) 54 cents to C$37.07.

The base metals sector declined almost three per cent as December copper dipped a penny at US$3 a pound. Teck Resources (TSX: TCK-B.TO) lost $1.07 to $32.99.

The December bullion contract on the Nymex declined $7.10 to US$1,035.70 an ounce, sending the gold sector down 1.14 per cent. Goldcorp Inc. (TSX: G.TO) faded 53 cents to $40.42.

Financials were also a major drag, down 1.2 per cent as CIBC (TSX: CM.TO) gave back 87 cents to $63.08.

The TSX Venture Exchange declined 3.34 points to 1,302.61.

New York indexes were mixed as some positive news from the housing sector was overshadowed by an unexpected slip in consumer confidence during October.

The Dow Jones industrial average gained 34.1 points to 9,902 as the U.S. Conference Board's Consumer Confidence Index sank to 47.7 in October - its second-lowest recording since May and well below the expected reading of 53.1.

A reading above 90 means the economy is on solid footing.

"Consumers also remain quite pessimistic about their future earnings, a sentiment that will likely constrain spending during the holidays," said Lynn Franco, director of The Conference Board's Consumer Research Center.

The Nasdaq composite index slipped 12.69 points to 2,129.16 while the S&P 500 index lost 2.05 points to 1,064.9.

The Standard & Poor's/Case-Shiller home price index of 20 major cities rose one per cent from July to a seasonally adjusted reading of 144.5.

While prices are down 11.4 per cent from August a year ago, the annual declines have slowed since February.

Prices are at levels not seen since August 2003 and have fallen almost 30 per cent from the peak in May 2006.

In other corporate news, utility TransAlta Corp. (TSX: TA.TO) said net income rose to $66 million or 34 cents per share in the third quarter, up from $62 million or 31 cents per share in the year-earlier period. Revenue fell to $666 million from $791 million and its shares were off three cents to $21.02.

QLT Inc. (TSX: QLT.TO), which has refocused its business on the anti-blindness treatment that was its original product, reported that net income fell to US$8.9 million or 16 cents per share in the three months ended Sept. 30, including discontinued operations, down from US$146.9 million or $1.97 per share a year earlier.

QLT shares backed away five cents to $3.71 as the company also said that revenue fell to US$8.78 million from US$10.87 million in the third quarter of 2008.

Kinross Gold Corp. (TSX: K.TO) shares were 93 cents lower to $20.72 as the company cut its production guidance for 2009 on Monday due to lower than expected results from its operations in Brazil due to continuing problems at its Paracatu mine. The gold miner said it expected to produce 2.2 million gold equivalent ounces at an average cost of sales per ounce of $435 to $450 for 2009.

Meanwhile, Asian stocks retreated Tuesday, following losses on Wall Street amid rising concerns the markets have gotten ahead of economic realities.

In Japan, the benchmark Nikkei 225 stock index lost 1.5 per cent while Hong Kong's market, which was closed Monday, dropped 1.9 per cent.

China's Shanghai market led Asia's declines, tumbling 2.8 per cent.

London's FTSE 100 index was off 0.04 per cent, Frankfurt's DAX was down 0.56 per cent while the Paris CAC 40 was down 0.43 per cent.