Investors returned to their selling ways on Thursday morning, sending North American stocks sharply lower just a day after some sense of stability had returned to major indexes.
Soon after the start of trading, the Dow Jones industrial average fell 183 points, or 1.5 per cent, to 11,714. The broader S&P 500 fell 23 points, or 1.8 per cent, to 1237. In Canada, the S&P/TSX composite index fell 132 points, or 1 per cent, to 12,684.
The declines come amid ongoing concern about the global economy. Investors look particularly concerned about the European debt crisis, where concern has spread to Italy and Spain. Crude oil dipped to $90.93 (U.S.) a barrel, down 99 cents. However, gold reflected the financial uncertainty, rising to $1,672.50 an ounce, up $6.20.
Kraft Foods Inc. was one of the few bright spots in the market, rising 3.8 per cent after it announced that it would split itself into two publicly traded companies.
But economically sensitive stocks were hit hard. Alcoa Inc. and Chevron Corp. fell 3.2 per cent each, DuPont fell 2.9 per cent and Bank of America Corp. fell 2.4 per cent. General Motors Co. fell 3.3 per cent, despite reporting strong quarterly results.
In Canada, Yellow Media Inc. fell 30 per cent after the directories business slashed its dividend to 15 cents a share from 65 cents (Canadian).
Energy stocks were weak, with Suncor Energy Inc. and Canadian Natural Resources Ltd. down 2.1 per cent each. Among the Big Banks, Royal Bank of Canada fell 1.7 per cent.
However, gold producers showed some strength, with Barrick Gold Corp. up 0.5 per cent.
David Berman