TORONTO -- The Toronto stock market was sharply lower midafternoon Tuesday, led by an almost three per cent pullback in the metals and mining sector following a disappointing earnings report from Teck Resources (TSX:TCK.B).
Meanwhile, the industrials sector was also down more than two per cent as shares in Canada's two major railways, CN and CP, fell even as both reported first-quarter earnings that beat estimates.
The S&P/TSX composite index plunged 108.66 points to 15,303.94, while the Canadian dollar lost 0.47 of a U.S. cent to 81.30 cents.
New York Markets were mixed amid a mixed bag of earnings reports as investors tried to gauge the effect of the higher U.S. dollar on corporate profits. The Dow Jones industrial average was down 96.62 points at 17,938.41 after a more than 200-points drop Monday, while the S&P 500 shed 4.97 points to 2,095.43, Meanwhile, the Nasdaq advanced 18.01 points to 5.012.61.
On the commodity markets, the June crude contract was down $1.68 at US$56.20 a barrel, while June gold rose $9,40 to US$1,203.10 an ounce and copper fell four cents to US$2.69 cents a pound.
In corporate news, Teck reported adjusted quarterly earnings of $64 million or 11 cents per share for the quarter, down 40 per cent from $105 million or 18 cents per share a year earlier and three cents below the average analyst estimate as compiled by Thomson Reuters. Meanwhile, Teck announced a two-thirds cut in its dividend in response to current low commodity prices and the diversified miner's outlook.
Canadian National Railway (TSX:CNR), which reported higher quarterly earnings after markets closed Monday, saw its shares drop $3.18 or almost four per cent to $89.17. Canadian Pacific Railway, which reported an all-time quarterly profit of $320 million on Monday, nonetheless saw its share drop $4.60 or 1.94 per cent to $232.66.
