Skip to main content

The Globe and Mail

The close: Dow, TSX push losing streak to four days

Research In Motion CEO Thorsten Heins speaks during the annual general meeting of shareholders in Waterloo July 10, 2012.


North American stocks extended their losing streak to four days, with major indexes falling hard on Tuesday as early enthusiasm over Alcoa Inc. earnings led to another round of concerns about deteriorating economic conditions.

The Dow Jones industrial average closed at 12,653.12, down 83.17 points or 0.7 per cent.

The broader S&P 500 closed at 1,341.47, down 10.99 points.

Story continues below advertisement

In Canada, the S&P/TSX composite index closed at 11,512.22, down 122.45 points or 1.1 per cent.

Stocks had begun on a much stronger note, with the Dow rising by more than 90 points near the start of trading following a relatively upbeat earnings report from Alcoa Inc. on Monday.

Alcoa reported a net loss for the quarter, but nonetheless topped analysts' revenue and operating earnings estimates, which sent the shares higher in early trading on Tuesday. However, they ended the day down 2.7 per cent.

Investors were likely focused on signs elsewhere that companies are struggling within a weak global economy.

Advanced Micro Devices Inc. fell 11.2 per cent after the chip maker cut its outlook because of worsening conditions in Europe and China.

As well, engine-maker Cummins Inc. fell 8.9 per cent after it lowered its revenue outlook for 2012.

Earlier, it had forecast sales growth of 10 per cent over last year, but now sees no growth at all.

Story continues below advertisement

"We have seen demand in some markets weaken recently as growth in the global economy has slowed," said Tom Linebarger, Cummins' chief executive and chairman, in a release.

Research In Motion Ltd. fell 4.6 per cent after it hosted its annual shareholders meeting, forcing key executives to face hostile questions from shareholders.

The slide in North American markets stood in contrast to gains in Europe, where investors cheered an agreement among finance ministers to extend Spain's deadline for reducing its budget deficit.

Major indexes moved higher: Germany's DAX index and the U.K.'s FTSE 100 rose 0.9 per cent each.

The gains follow some relief in the bond market as well, where yields declined for government bonds of some of the more indebted nations.

The yield on Spain's 10-year government bond fell to 6.73 per cent, down 25 basis points, after troubling gains in recent trading action.

Story continues below advertisement

Commodities moved lower. Gold fell to $1,579.80 an ounce, down $9.30. Crude oil fell to $83.91 a barrel, down $2.08.

Among commodity producers, Barrick Gold Corp. fell 2.7 per cent and Suncor Energy Inc. fell 1.5 per cent.

Report an error Licensing Options
About the Author
Investing Reporter

David Berman has been writing about business and investing since 1995. He has written for a number of magazines, including Canadian Business and MoneySense. He worked at the Financial Post as an investing writer and daily columnist before moving to the Globe and Mail in 2008. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at