Source: The Canadian Press

The Toronto stock market posted a small loss Wednesday after worrisome economic data out of the U.S. and growing crude oil inventories put downward pressure on energy stocks.

The S&P/TSX composite index was down 20.06 points to 11,696.63.

Orders to U.S. factories for big-ticket manufactured goods dropped 1% in June, the second straight monthly decline and the largest drop since August 2009, according to the U.S. Commerce Department. The move disappointed economists, who were looking for a gain of 0.7%.

The report was yet another sign that the economic recovery south of the border is slowing, which could hurt demand for everything from oil to base metals to manufactured goods exported by Canada.

Canadian investors balanced the news with a mixed batch of earnings from key companies including Teck Resources Ltd. (TSX:TCK.B), Husky Energy Inc. (TSX:HSE), and Canadian Pacific Railway Ltd. (TSX:CP).

The drop on the TSX was relatively small because investors have already priced in the potential of a slowing economy, said Ian Nakamoto, director of research at MacDougall, MacDougall and MacTier in Toronto.

“If people had a rosy outlook for the economy and the markets, then it would have a greater impact,” Nakamoto said. “I think we all have our helmets on for this bad news.”

Oil stocks came under pressure following the durable goods data and news that oil inventories grew by 7.31 million barrels last week, compared with a forecast decline of 1.73 million barrels.

The Toronto energy sector dropped 1.3% after the September crude contract on the New York Mercantile Exchange lost 51 cents to close at US$76.99 a barrel. Shares in Husky Energy were down 99 cents or 3.8% to $25.40 after the company reported a 36% decline in its second-quarter profit.

Telecommunication stocks also pressured the TSX, losing 1.6% as Rogers Communications Inc. launched its new Chatr discount brand into an increasingly saturated cellphone market. Shares in Rogers fell $1.24 or 3.4% to $35.59.

Base metals shares slipped 0.1% even as the September copper contract on the Nymex gained 3.9 cents to close at US$3.25 a pound.

Shares in Teck Resources lost 52 cents to $35.38 after the miner reported a 54% drop in its profit compared to a year ago, when it recorded a large foreign-exchange gain.

The August bullion contract edged up $2.40 to close at US$1,160.40 an ounce following a big sell-off on Tuesday. Gold shares gained 0.8%, as Goldcorp Inc. (TSX:G) added 26 cents to $40.45.

The financial sector was up 0.2% as investors continued to feel bullish about the European financial sector’s prospects for recovery. Shares in Royal Bank of Canada (TSX:RY) gained 50 cents to $53.90.

The Canadian dollar slipped 0.22 of a cent to 96.29 cents U.S., while the TSX Venture Exchange added 14.34 points to 1,410.62.

Wall Street moved lower following the weaker-than-expected economic data. The Dow Jones industrial average lost 39.81 points to 10,497.88, while the Nasdaq composite index was down 23.69 points at 2,264.56. The S&P 500 index fell 7.71 points to 1,106.13.

Investors have been trying in recent weeks to balance strong earnings and corporate outlooks with economic data that indicates the recovery is slowing and growth will remain weak.

On Bay Street, the operator of Canada’s largest stock exchange, TMX Group Inc. (TSX:X), reported a 2% increase in net income to $47.6 million, while revenue increased by 3%. Shares in TMX lost 57 cents to $28.75.

Torstar Corp. (TSX:TS.B) said the strong Canadian dollar limited its revenue growth in the second-quarter but its net income grew to $22.7 million, compared to a $4.4-million loss a year ago. Shares in Torstar fell 32 cents or 3.1% to $10.

A major pipeline leak in Michigan overshadowed quarterly results from Enbridge Inc. (TSX:ENB). The pipeline company said its net income dropped 65% to $138 million. Shares in Enbridge lost $1.02 to $50.53.

Canadian Pacific Railway Ltd. reported a 20% increase in revenue to $1.2 billion, while net income grew 23% to $166.6 million. Shares in CP gained 79 cents to $60.61.

Sherritt International Corp. (TSX:S) said its profit dropped 36% to $15.7 million after a large foreign-exchange loss. Sherritt’s stock lost 27 cents or 3.8% to $6.80.

Lundin Mining Corp. (TSX:LUN) said its second-quarter profits surged 74% to US$75.6 million, aided by $27.9 million in net proceeds from the sale of its shares in Chariot Resources. Lundin’s stock gained seven cents to $3.98.

Casey’s General Stores’ (Nasdaq:CASY) board has formally rejected a sweetened takeover offer from Alimentation Couche-Tard (TSX:ATD.B) and responded with a plan to spend US$500-million buying back its own stock. Shares in Couche-Tard added 53 cents to $21.84.