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Markets drop on Greek anxiety(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Mosaid ponders Wi-Lan offer The Toronto stock market posted a triple-digit loss at midday Monday amid weaker commodity prices and fresh anxiety over a potential default by the Greek government on its loans. The S&P/TSX Composite Index tumbled 204.75 points, or 1.7%, by noon ET to 12,182.79 The Canadian dollar stumbled 0.06 of a cent to 100.34 cents U.S., after earlier dipping below parity for the first time since January as investors nervous about Europe's debt problems sought safety in the U.S. dollar. The mining sector was down with shares in Teck Resources Ltd. off $1.53 to $39.05. In Canadian corporate news, Mosaid Technologies Inc. says it is exploring a "broad range of alternatives" to Wi-LAN Inc.'s offer of $38 per share. The company says statements from Wi-LAN about the possible negative financial impact of a new family of patents are misleading and inaccurate. Mosaid shares added three cents to $39.68, while Wi-LAN shares fell 3.5%, or 24 cents, to $6.72. Design software maker 20-20 Technologies Inc. posted third-quarter net earnings of $403,000, or two cents per share, sliding from $840,000, or four cents per share, a year ago. Revenues increased 17.6% to $17.4 million. Shares were unchanged at $2.75 each. And Coastal Contacts Inc. posted a third-quarter loss of $1.5 million from a profit of $529,000 a year ago on higher overall costs. Sales increase to $49.6 million from $39.5 million. Shares lost 3% or eight cents to $2.61. ON BAYSTREET The TSX Venture Exchange lost 33.08 points to 1,752.02, while the Nasdaq Canada index backpedaled 6.09 points to 507.14 All but one of the 14 Toronto subgroups were in the red at midday. Metals and mining dipped 4.2%, while global base metals suffered 3%, and gold doffed 2.6% Only information technology stocks gained, and only 0.04% at that. ON WALLSTREET In New York, stocks remained mostly lower Monday amid fears that Europe's debt crisis was only getting worse. The Dow Jones Industrials slumped 105.65 points, or nearly 1%, to 10,886.50 The S&P 500 dropped 9.77 points to 1,144.46, while the Nasdaq shed 8.32 points to 2,459.67. On the upside, chipmaker Intel was the best performer on the Dow, with shares up 1.5%, while Micron Technology and eBay were among the biggest gainers on the S&P 500 and Nasdaq. Bank of America shares edged up 1% after CEO Brian Moynihan said the bank plans to cut costs by 8% through 2014. The bank also confirmed that it expects to cut 30,000 jobs in the 'next few years' as it moves to refocus its banking business. McGraw Hill agreed to split into two companies -- one focused on its education unit, and the other will combine Standard & Poor's, McGraw-Hill Financial and Business Information. Shares of McGraw-Hill rose nearly 2%. Overall, trading will remain choppy as investors continue to struggle with a new wave of anxiety over the possibility that Greece will default on its debts. Adding to the jitters, France's top banks could be facing a possible credit downgrade from ratings agency Moody's, according to Reuters. Traders expect a downgrade announcement could be issued at any moment as the 90-day window for the review comes to a close. The credit ratings agency issued the review on June 15. Stocks ended sharply lower Friday, as bad news out of Europe kept piling up. The selloff triggered the sixth weekly decline in seven weeks for the Dow and S&P 500. After the resignation of European Central Bank executive board member Jürgen Stark, investors grew increasingly concerned about a possible Greek default. Economically speaking, President Obama will make a new pitch for his $447-billion U.S. job creation act from the Rose Garden Monday and then he will send the stimulus plan to Congress this evening. Prices for the 10-year Treasury fell, raising the yield to 1.92% from 1.89% late Friday. Prices and yields for Treasurys move in opposite directions. Oil for October delivery popped higher by $1.23 to $88.47 U.S. a barrel. Gold futures for December delivery fell $23 to $1,835.90 U.S. an ounce © 1998 - 2011 Baystreet.ca Media Corp. All rights reserved. |