TORONTO – The Toronto stock market posted yet another big loss to close out the week amid a widespread decline in the heavily weighted financial sector and a further plunge in the stock price of trouble-plagued Valeant Pharmaceuticals International.
At the close, the Toronto Stock Exchange’s S&P/TSX composite index had fallen 262.7 points to 13,529.17 in its second triple-digit decline of the week and fourth negative showing over the last five sessions.
Valeant, Canada’s largest drug company, continued its slide amid ongoing questions about its business and accounting practices, falling $20.66 or almost 14 per cent to $127.57.
The Canadian dollar rose 0.56 of a cent to 76.51 cents U.S.
In New York, indexes fell after mixed reports on consumer spending. The Dow Jones industrial average dropped 92.6 points to 17,633.20, while the S&P 500 fell 10 point to 2,079.34 and the Nasdaq shed 20.53 points to 5,053.36.
The U.S. Commerce Department said consumer spending inched up just 0.1 per cent in September – the smallest gain in eight months – partly because consumers were spending less on gasoline as energy prices fell.
Meanwhile, the University of Michigan said its consumer confidence index rose to 90 in October after dropping to 87.2 in September.
Richard Curtin, chief economist for the university’s consumer surveys, said the entire gain was generated by improved spirits among lower-income households. Wealthier consumers were a bit less confident, worried about gyrations in financial markets that reflect deteriorating economic conditions overseas.
Consumer spending is closely watched because it accounts for 70 per cent of U.S. economic activity.
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