MARK BLINCH
Stocks took a drastic U-turn on Thursday as investors recoiled from setbacks in the European debt crisis, Chinese export growth and the U.S. unemployment trend - just one day after marking the second anniversary of the start of the bull market.
The Dow Jones industrial average closed at 11,984.61, down 228.48 points or 1.9 per cent. The broader S&P 500 closed at 1295.11, down 24.91 points or 1.9 per cent - marking its biggest one-day tumble in more than two weeks.
In Canada, the S&P/TSX composite index closed at 13,638.58, down 246.13 points or 1.8 per cent. That marks its biggest one-day decline since last August. The benchmark index has fallen for four straight days, adding up to a 4.3 per cent decline, which puts it on track for its worst week since last July if things don't improve on Friday.
The declines were broad, with just one stock within the 30-member Dow rising (that would be McDonald's Corp., which rose 1.2 per cent). However, commodity producers led the retreat after commodity prices fell. Crude oil fell to $102.70 (U.S.) a barrel, down $1.68 - its most significant decline since violence in Libya sent the price up to two-and-a-half year highs. Gold fell to $1412.50 an ounce, down $17.10.
Among key energy producers and miners, Suncor Energy Inc. fell 3.5 per cent, Exxon Mobil Corp. fell 3.6 per cent, Alcoa Inc. fell 3.1 per cent and Barrick Gold Corp. fell 1.7 per cent. Meanwhile, fertilizer producer Potash Corp. of Saskatchewan Inc. fell 2.9 per cent and equipment maker Caterpillar Inc. fell 3.9 per cent.
In other moves, Transat A.T. Inc. plunged 28.7 per cent after the tour operator reported a disappointing quarterly loss and warned of difficult competition. Canadian banks, which had been performing well after a strong reporting season, also took a step back. Royal Bank of Canada fell 2.3 per cent and Bank of Montreal fell 1.2 per cent.
David Berman