The Toronto Stock Exchange fell on Thursday as commodity prices dropped following disappointing economic reports from the United States.
The benchmark S&P/TSX composite index followed Wednesday's 1.5% gain with a decline of 0.41% on Thursday, closing at 13,410.20 for a drop of 55.55 points. Six of the 10 sub-indexes advanced, but two of the most heavily weighted sectors, materials and energy, were among the decliners.
The price of crude oil closed at $85.64 US a barrel on Thursday, a drop of $1.69. Gold fell $14.60 to close at US$1,318.40 an ounce.
Better-than-expected earnings results from companies such as Potash Corp. of Saskatchewan Ltd. and Celestica in Canada, and Qualcomm, Caterpillar and Starbucks in the U.S. were overshadowed by initial jobless claims for last week that came in higher than analysts had estimated, and durable goods orders in the U.S. that missed expectations.
Also on Thursday, Standard & Poor's downgraded Japan's credit rating to AAfrom AA.
The Canadian dollar rose 21 basis points to US100.68¢.
The junior Venture exchange fell 16.53 points, or 0.73%, to 2,233.97.
The Dow Jones industrial average closed nearly flat, with a gain of 4.39 points, or 0.04%, to 11,989.83. The Nasdaq composite index rose 15.78 points, or 0.58%, to 2,755.28.
Microsoft reported better-than-expected earnings after the markets closed.
Potash Corp. was one of the highlights in Toronto on Thursday, gaining 2.92% to $172.26 after reporting results that, excluding one-time costs to fight BHP Billiton's takeover bid, beat expectations. Contract manufacturer Celestica Inc. rose 5.20% to $9.91.
Shoppers Drug Mart Corp. saw its share price drop 5.08% to $37.19 after reporting Wednesday that president and chief executive Jurgen Schreiber is resigning effective Feb. 15.
Auto parts manufacturer Magna International, which announced Thursday that it would open a stamping plant in Mexico, gained 5.10% to $61.19.
Royal Bank of Canada led an advance in the financials sector after an index of pending home sales in the U.S. rose for a third month. The bank's shares gained 1.06% to $53.46.
Suncor Energy's share price declined 1.41% to $38.55 as the price of oil fell. Canadian Natural Resources lost 1.74% and closed at $41.90.
Gold producer Barrick Gold Corp. slipped 3.30% to $46.02, and copper producer Teck Resources declined 2.92% to $59.13.
