TSX declines on earnings season worries
By John Tilak
TORONTO (Reuters) - Canada's main stock index slipped for a second straight session on Tuesday as apprehensions about the upcoming U.S. and Canadian earnings seasons fueled declines in most major sectors.
Worries that U.S. interest rates might rise earlier than expected and fears that stock prices might have run ahead of themselves also weighed on the market.
Telecoms shares remained in selloff mode, a day after the government announced a new spectrum auction that favors smaller industry players, and were one of the biggest drags on the market.
The U.S. earnings season kicked off with Alcoa Inc (AA.N: Quote) reporting second-quarter results after the market closed. Major Canadian companies are expected to begin unveiling their quarterly reports later this month.
“There’s some trepidation about whether corporate earnings will come in as strong as the market expects,” said Elvis Picardo, strategist and vice president of research at Global Securities in Vancouver.
“This bull run has been underpinned by strong fundamentals, but some concern about earnings is to be expected,” he added.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed down 35.75 points, or 0.24 percent, at 15,137.18. Eight of the 10 main sectors on the index were in the red.
Financials, the index's most heavily weighted sector, gave back 0.2 percent. Toronto Dominion Bank (TD.TO: Quote) lost 0.1 percent to C$54.99, and Bank of Nova Scotia (BNS.TO: Quote) fell 0.5 percent to C$71.89. Continued...