CANADA STOCKS-TSX slips as earnings, U.S. debt worries weigh

Tue Jul 26, 2011 10:42am EDT
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 *TSX falls 69.35 points, or 0.5 pct, to 13,366.60
 *Nine of 10 index sectors weaker, RIM gains
 *CNR top decliner after earnings report
 (Updates with details, comments)
 By Claire Sibonney
 TORONTO, July 26 (Reuters) - Toronto's main stock market
index drifted lower on Tuesday morning as lackluster Canadian
earnings and a stalemate in U.S. debt talks kept many investors
on the sidelines.
 All three of the index's most heavily weighted sectors were
lower: financials fell 0.5 percent, energy slipped 0.5 percent,
and materials lost 0.3 percent.
 Toronto-Dominion Bank (TD.TO: Quote), down 0.8 percent at C$79.57,
and Suncor Energy (SU.TO: Quote), down 0.8 percent at C$39.13, were
among the biggest laggards.
 "I just think that it is probably uneasiness with the
political situation in the United States," said Fred Ketchen,
director of equity trading at ScotiaMcLeod, who noted that U.S.
debt worries were taking a toll on commodity prices, which
helped pull down stocks.
 "That is causing people just to say 'you know, I don't need
to be in the market right now'. I'll just take a walk back and
stand on the sidelines and wait for something to happen that
gives it a reason to rally," Ketchen said.
 The United States edged closer on Tuesday to a devastating
default as President Barack Obama's Democrats and the
Republicans were deadlocked over competing plans to raise the
debt ceiling, one week before a deadline to act. [nN1E76P002]
 At 10:18 a.m. (1418 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 69.35 points, or
0.52 percent, at 13,366.60. Nine of the 10 main index groups
were weaker, while technology shares added 0.3 percent.
 Ketchen also pointed to domestic earnings that were only
"half decent," and failed to entice investors back into the
 Canadian National Railway (CNR.TO: Quote) was the heaviest
decliner, down 2.4 percent at C$73.42, after its report of a
modest increase in quarterly earnings on Monday failed to
impress investors. [nN1E76K2GN]
 Rogers Communication (RCIb.TO: Quote) was close behind, dropping
4.5 percent to C$36.12 after reporting an almost flat profit as
it fought hard to keep its lead position in Canada's wireless
sector. [nN1E76O1QC]
 Inmet Mining IMN.TO sank 5.3 percent to C$66.26, after
the Canadian base metal miner reported disappointing quarterly
results and cut its full-year production outlook due to
operational problems. [nN1E76P0BA]
 Among the gainers,  BlackBerry-maker Research In Motion
RIM.TO rose 1.4 percent to C$25.55 following a sharp selloff
in the previous session.
 ($1=$0.94 Canadian)
 (Reporting by Claire Sibonney; editing by Peter Galloway)