Canadian Market

Bay Street Stocks Could Extend Losses

Toronto stocks could drop for a second straight day, following the lead of U.S. and European markets. Energy stocks could see weakness as crude oil is lower in electronic trading.

Crude oil prices edged lower in electronic trading, losing 34 cents to $64.38 per barrel. Gold slipped $1.40 to $945.50 and copper prices were flat at $2.451.

Suncor reported second quarter earnings of C$185 million or C$0.20 per share, sharply below C$920 million or C$0.99 per share reported in the second quarter of 2008.

Financials may also decline as Morgan Stanley a reported a second quarter loss of $159 million or $1.37 per share, compared to income of $689 million or $0.61 per share, a year ago.

Silvercorp Metals announced that its offer to acquire all the outstanding shares of Klondex Mines has been terminated.

MatlinPatterson Global Advisers said Tuesday evening that it has submitted a proposal to buy substantially all of Nortel Network Corp.'s CDMA and LTE Access assets for US$725 million. The offer tops an earlier bid for the assets by Nokia Siemens Networks B.V. by $75 million.

Teck Resources and Husky Energy are on the earnings calendar today. In economic news, Canadian retail sales rose 1.2% in the month of May, according to Statistics Canada. This is compared to a revised 0.6% drop for April. Excluding auto, sales were up 0.7% after falling 0.5% in April.

Tuesday, the S&P/TSX Composite Index dropped 25.39 points or 0.24% to settle at 10,515.32. The drop was the first in seven sessions for the index.