Investors ignore solid growth data

Economic report cards from both Canada and the United States came in better than expected yesterday, but investors were having none of it, driving down stock markets on both sides of the border.

The S&P/TSX composite index was down 179.9 points, or 1.6%, to 11,094.31.

The big three sectors of financials, energy and materials were all negative. For January, the TSX was down 5.6%, its biggest monthly loss since last February.

Potash Corp. of Saskatchewan Inc. dropped 4.8% yesterday as investors continued to punish the stock after the 69% drop in fourth-quarter profit reported Thursday.

Niko Resources Ltd. fell 3.4%, while First Quantum Minerals Ltd. was down 3.1%.

On the New York Mercantile Exchange, gold was down US$1 to US$1,083.80 an ounce, while oil fell US75¢ to US$72.89. The Canadian dollar was down 27 basis points to US93.52¢.

The TSX Venture composite index was down for an eighth straight day, falling 9.64 points, or 0.6%, to 1492.15.

Economic growth in Canada was 0.4% in November, Statistics Canada said yesterday, the third consecutive monthly increase.

Economists had expected a gain of between 0.1% and 0.3%.

The U.S. Commerce Department reported the economy grew at 5.7% in the fourth quarter, surpassing expectations for a 4.6% growth rate.

USA and Canada Have 3 Bad Days On Markets

Economic report cards from both Canada and the United States came in better than expected Friday, but investors were having none of it, driving down stock markets on both sides of the border.

The Toronto Stock Exchange's S&P/TSX composite index was down 166 points, or 1.5%, to 11,108 at the close. The big three sectors of financials, energy and materials were all negative.

On the New York Mercantile Exchange, gold was down $1 to US$1,083.80 an ounce, while oil fell 75 cents to US$72.89 a barrel.

The Canadian dollar was down 26 basis points to 93.53 cents US late in the afternoon.

Economic growth in Canada was 0.4% in November, Statistics Canada said Friday, the third consecutive monthly increase. Economists had expected a gain of between 0.1% and 0.3%.

The U.S. Commerce Department reported the American economy grew at an annualized 5.7 % in the fourth quarter, surpassing expectations for 4.6 %.

Still, U.S. markets gave up their earlier-day momentum and finished down Friday. The Dow Jones industrial average was off by 57 points, or 0.6%, to 10,064 as trading stopped. The Nasdaq composite index was down 32 points, or 1.5%, to 2,147.

Markets were mostly up in Europe but down in Asia.

With files from John Morrissy