With the interest rate issue finally settled, investors are turning to earnings for direction, and a slew of warnings that were released Tuesday dragged down North American markets.
The S&P/TSX composite dropped slightly, down 1.26, or 0.01%, to 8,484.74. The TSX Venture Exchange fell 14.25, or 0.90%, to 1,561.90.
In Toronto, technolgy stocks lead the way down, falling 1.45% as a group, while gold shares were off 0.52% and financials were down 0.43%. Energy stocks as a group were up 1.73%, with real estate shres increasing 2.2%.
In the U.S., stocks ended hit month lows. The Dow Jones industrial average dropped 63.49 points, or 0.62%, to 10,219.34, its lowest close since June 3. The S&P 500 Index dropped 9.19 points, or 0.82%, to 1,116.19, its lowest close since May 26. The Nasdaq composite index dropped 43.23 points, or 2.15%, to 1,963.43, also the lowest since June 3.
In the U.S., shares of Veritas Software and chipmaker Conexant took a beating after the companies warned of shortfalls in their Q2 results. Lehman Brothers adversely affected Chipmaking giant, Intel Corp., after the brokerage trimmed its estimate for the company’s third-quarter earnings.
In Canada, broadband wireless equipment maker Wi-Lan Inc. warned of a $7-million annual loss. The company also cut its revenue forecast, driving its shares down 23¢ to $2.71. Celestica lost $1.28 to $23.61. Cognos shed $1.50 to $45.92 and Zarlink Semiconductor declined 25¢ to $5.50.
Meanwhile, worries about oil supply resurfaced after weekend attacks on Iraqi pipelines pushed up prices. Crude prices rose to $1.26 a barrel higher on the New York Mercantile Exchange to $39.65 – another month-high.
The Canadian dollar finished down 0.06 of a cent at US75.32¢.