Canadian shares dropped for a second day, tracking global equities. The Standard & Poor’s/TSX Composite Index (TSE:OSPTX) fell 0.5 percent to 15,073.90 at 12:42 p.m. in Toronto. Three shares declined for every two issues that advanced as nine out of ten share groups were in the negative territory.
The consumer discretionary group, the fifth heaviest on the index, gave back 0.9 percent. George Weston (TSE:WN), which owns grocer Loblaw Cos. and Weston Foods, fell 0.7 percent to C$100.37 as it expects a decline in operating income for the year due in part to costs associated with capital investments.
Air Canada (TSE:AC.B) climbed 3.7 percent to C$12.15 after the nation's largest airline posted much stronger-than-expected adjusted earnings and a 6 percent improvement in revenue, capping off what the airline called the best first-quarter financial performance in its history.
The materials sub-index, which includes mining shares, was flat as gold futures jumped today. Goldcorp (TSE:G), Canada’s largest gold miner by market value, edged up 0.8 percent to C$22.68. Barrick Gold (TSE:ABX), the second-largest, slipped 0.5 percent to C$15.41.
Pan American Silver (TSE:PAA) slipped 0.3 percent to C$11.71 after the world's fourth-largest silver producer swung to a first-quarter loss of 13 cents a share from a profit of 5 cents a year earlier.
Gold for June delivery on Comex rose 0.5 percent to $1,189.10 an ounce, while July silver advanced 0.3 percent to $16.37 an ounce.
Financials, the index's most heavily weighted sector, skidded 0.4 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, slid 0.2 percent to C$79.01. Toronto-Dominion Bank (TSE:TD), the second-largest bank by market value, gave up 0.4 percent to C$55.41.
TMX Group (TSE:X) slumped 5 percent to C$52.39 as the operator of the Toronto Stock Exchange posted a first-quarter adjusted profit of C$0.91 per share, down from C$1.05 a year earlier and C$0.06 shy of analyst expectations.
The energy sector, the main index's second most heavily weighted group, rose 0.3 percent as oil futures climbed today. Suncor Energy (TSE:SU), Canada's largest oil sands producer, slid 0.2 percent to C$36.78. Canadian Natural Resources Limited (TSE:CNQ), Canada’s second-largest energy producer, inched up 0.2 percent to C$38.21.
Encana (TSE:ECA), Canada’s largest natural gas producer, fluctuated and was last flat at C$16.82. The company reported a $1.7 billion first-quarter loss after booking a massive impairment charge largely related to slumping oil and gas prices.
On the New York Mercantile Exchange, June crude traded at $60.83 a barrel, up 2.7 percent. Brent crude for delivery in June added 3 percent to $66.88 a barrel on London’s ICE Futures exchange. Oil was buoyed by a weaker dollar as traders bet that upcoming data will show a decline in U.S. crude supplies.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) fell 0.3 percent to 688.87.\
In the U.S. market, shares moved lower today as a continued rise in government bond yields triggered selloffs in global equity markets. The S&P 500 (INDEXSP:.INX) skidded 0.4 percent to 2,097 at 11:41 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) slipped 0.2 percent to 18,061, and the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) dropped 0.4 percent to 4,973. Most followed shares included AOL, YY, Rackspace Hosting, LivePerson, Gap, Hilton, Arcos Dorados, Dish Network, Providence Service, Depomed, Impax Laboratories, and Lumber Liquidators.