CANADA STOCKS-TSX declines on earnings season worries

Tue Jul 8, 2014 4:46pm EDT

Related Topics

* TSX down 35.75 points, or 0.24 percent, at 15,137.18
    * Eight of 10 main index sectors decline
    * Intertape jumps after dividend increase

    By John Tilak
    TORONTO, July 8 (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 
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
 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 lost 0.1 percent
to C$54.99, and Bank of Nova Scotia fell 0.5 percent to
C$71.89.
    Shares of energy producers slipped 0.4 percent, with Brent
crude oil prices trading lower. Suncor Energy Inc shed
0.2 percent to C$45.35, and Talisman Energy Inc fell
0.2 percent to C$10.87.
    Shares of telecoms providers dropped 0.8 percent, with Telus
Corp weakening 2.1 percent to C$38.47 and Rogers
Communications Inc declining 0.4 percent to C$42.20.
    In corporate news, Intertape Polymer Group Inc said
late on Monday it raised its dividend by 50 percent. The stock
shot up 11.6 percent, to C$13.65. 
    ($1=$1.07 Canadian)

 (Editing by Peter Galloway and Chris Reese)
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