CANADA STOCKS-TSX slides as resources drop on growth fears

Fri Jul 16, 2010 10:56am EDT
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* TSX falls 127.88 points to 11,613.89

* Nine of 10 TSX groups lower; healthcare lone gainer

* U.S. consumer data sparks fears about growth (Adds details, quotes)

By Jennifer Kwan

TORONTO, July 16 (Reuters) - Toronto's main stock index was lower shortly after the open on Friday as weaker commodity prices, including a drop in the price of oil, pushed down shares of resource companies.

The TSX retreated in lockstep with U.S. equities, which skidded after Citigroup, Bank of America and General Electric all posted disappointing revenues, while consumer data suggested sluggish U.S. demand and pointed to a weak recovery. [.N]

A reading on consumer sentiment dropped to its lowest level in 11 months, while consumer prices fell for a third straight month in June, heightening concerns about deflation. [ID:nN1653074]

The gloomy U.S. reading outweighed data from Statistics Canada showing a gradual recovery in manufacturing pushed up Canada's composite leading indicator by 1.0 percent in June, outweighing the effects of a cooler housing market.

Royal Bank of Canada RY.TO fell 1.4 percent to C$54.26, in line with the disappointment about the U.S. bank earnings.   Continued...