The TMX Group logo, home of the TSX, is shown in Toronto on June 28, 2013. THE CANADIAN PRESS/Aaron Vincent ElkaimThe Canadian Press
The Toronto stock market was lower Thursday amid a stronger-than expected read on American economic growth and a variety of corporate earnings reports from Canada.
The S&P/TSX composite index was down 78.71 points to 14,448.86 with much of the weakness coming from the gold sector as bullion prices continued to retreat.
The Canadian dollar was down 0.01 of a cent to 89.42 cents (U.S.).
U.S. indexes were mixed as growth in the July-September period came in at an annualized pace of 3.5 per cent. Economists had expected a gain of three per cent.
The Dow Jones industrials ran up 108.65 points to 17,082.96, the Nasdaq was down 1.35 points at 4,547.88 and the S&P 500 index edged up 1.01 points to 1,983.31.
Traders also considered an investing environment without massive stimulus from the Federal Reserve, a day after the central bank said its third round of quantitative easing would conclude by month's end. The massive program of buying bonds was seen as a huge benefit to stock markets as the program kept long-term rates low and encouraged a strong rally.
At the same time, the Fed said it would continue to keep short-term rates low for a "considerable period."
QE also helped support higher gold prices because of worries the stimulus program would stoke inflation. Gold prices have fallen and continued to retreat Thursday morning, with the December contract dropping $20.30 to $1,204.60 an ounce. The TSX gold sector fell 4.4 per cent.
Lower gold prices are impacting major producers such as Barrick Gold Corp., which posted adjusted earnings of 19 cents a share, a penny higher than estimates. Revenue slipped to $2.6-billion (U.S.) from just under $3-billion, primarily reflecting lower sales volumes and lower gross margins and its shares slipped 15 cents to $14.18.
Goldcorp Inc. lost $44-million or five cents per share in its latest quarter compared with a profit of $5-million or a penny per share a year ago. Revenue totalled $1.09-billion, down from $1.16-billion in the same quarter last year and its shares fell $1.50 or 6.25 per cent to $22.54.
Other resource sectors headed down as prices for oil and metals also retreated.
The base metals component fell 1.6 per cent while December copper lost four cents to $3.06 a pound.
The energy sector shed 0.55 per cent as the December crude contract in New York fell 84 cents to $81.36 a barrel while Suncor Energy's net earnings were $919-million, or 63 cents per share, down from nearly $1.7-billion, or $1.13 per share, a year earlier amid lower crude prices and a drop in production from its exploration and production business. Earnings ex-items were 89 cents a share, versus the 77 cents that analysts expected. Revenue was $10.3-billion, compared to $10.4-billion a year earlier and its shares gained 26 cents to $39.11.
Elsewhere on the earnings front, Bombardier Inc. says its third-quarter revenues were up about 20 per cent from the same time last year, rising to $4.9-billion (U.S.). However, net income fell to $74-million or three cents per share, down from $147-million or eight cents per share amid expenses related to a reorganization announced in July, including $57-million for workforce reductions at its aerospace and rail divisions. Earnings ex-items were 12 cents a share, beating estimates of nine cents and its shares dipped three cents to $3.84.
In other corporate developments, TransCanada Corp. has filed a formal application with the National Energy Board for the proposed Energy East pipeline. The $12-billion project would ship Alberta crude through pipe that's already in the ground to Montreal, with new pipeline being built through Quebec and New Brunswick. Its shares gained 37 cents to $55.48.