2 Min Read
* TSX down 148.82 points at 10,608.61
* Materials sector leads selloff
* Weak U.S. corporate earnings prompt consolidation (Adds details and comments)
By Frank Pingue
TORONTO, July 28 (Reuters) - Toronto's main stock index was lower on Tuesday morning as some disappointing quarterly corporate results in the United States convinced investors to pocket some of the market's sharp recent gains.
But the early selloff, which affected all sectors, came a day after the TSX index rallied to its highest level in nearly 10 months and after a 44 percent climb from the five-year low it fell to in March.
"When you have that kind of move up it wouldn't surprise me at any point in time to see the market go through some period of consolidation," said Peter Chandler, senior vice-president at Canaccord Capital in Waterloo, Ontario. "So ... it's just a catch of breath after an unparalleled rise."
The slide was headed by the index's mining-laden materials group, which fell 2.2 percent on a drop in gold prices.
Shares of miner Goldcorp (G.TO), the biggest drag on the index, were off 4 percent at C$39.89, while Barrick Gold Corp (ABX.TO) was down 2.2 percent at C$37.00.
The selloff came after Viacom Inc VIAb.N and Office Depot Inc ODP.N both delivered disappointing quarterly results and spurred investors to seek more evidence of economic rebound.
At 10:15 a.m. (1415 GMT), the S&P/TSX composite index .GSPTSE was down 148.82 points, or 1.38 percent, at 10,608.61.
Shares of Rogers Communications Inc (RCIb.TO), another key drag on the index, fell 6 percent to C$29.05 after the company slashed its revenue outlook and said its wireless subscribers were cutting back on spending. [ID:nN2890483]
($1=$1.08 Canadian) (Editing by Peter Galloway)