North American stock markets faced a broadly-based sell-off Tuesday as investors responded negatively to pessimistic corporate news. The S&P/TSX composite index lost 102.85 points to close at 6,621.52.

Overall, 12 of the 13 TSX sector indices lost ground, led by a 4.69% drop in the gold group and a 2.33% decline in the information technology sector.

Nortel fell 13¢ to $2.86. Bombardier dropped 25¢ to $5.30.

The heavily weighted financial services sector
fell 1.76%, led by Royal Bank, down $1.50 at $57.90, and CIBC, which slid $1.25 to $44.50.


Fairfax Financial dropped $9 to $140 after it said it would take a $28 million charge to account for a restructuring of its U.S.-based TIG Insurance unit.

Among gold stocks, Barrick fell 97¢to $24.65, Placer Dome shed $1.16 to $17.09, and Kinross Gold
declined 31¢ to $3.25.

Market momentum was negative, as declining issues
outnumbered advancers 645 to 511.


The junior TSX Venture Exchange lost 3.32 points to 1,001.8.

U.S. markets were driven lower following a warning by McDonald’s of its first quarterly loss ever and by disappointing outlooks from several retailers.

The Dow Jones Industrial Average fell 92.01 points to 8535.39.

Dow component McDonald’s dropped $1.39 to $15.99 US.

The Nasdaq composite Index dropped 8.20 points to 1,392.10, while the S&P 500 dropped 7.44 points to 902.961.

The Canadian dollar soared more than half a U.S. cent to a five-month high. The loonie finished up 0.52 of a cent at US64.57¢.

Dominion Bond Rating Service, Moody’s and Standard & Poor’s have restored the federal government’s AAA credit rating.