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Wednesday,February 22,2012
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Toronto rockets higher
The Toronto stock market was modestly higher at Wednesday’s close as commodity prices shook off early losses amid weak European and Chinese economic data
The S&P TSX Composite Index regrouped and sprinted out to a gain of 77.90 points to end the day at 12,701.26
The Canadian dollar skidded 0.28 cents to 100.02 U.S. cents, still above parity with its U.S. neighbour.
On the TSX, a strong earnings report from Rogers Communications Inc. helped send the telecom sector up.
Its shares advanced 36 cents to $38.13 after it said it is increasing its quarterly dividend by 11% to 39.5 cents a share. Net income grew 8% to $327 million, or 61 cents per diluted share, from $302 million, or 50 cents per share. Operating revenue grew to $3.18 billion from $3.14 billion.
Meantime, rival telecom Telus Corp. said Tuesday it would raise its dividend to 61 cents a share, up from 58 cents. Telus also said it wants to end its dual-class share structure by converting its non-voting shares into voting shares on a one-for-one basis. Telus shares vaulted $1.53 to $57.43.
In the U.S., computer maker Dell Inc. fell shy of Wall Street’s profit estimates. Dell reported an adjusted fourth-quarter profit of 51 cents U.S. a share on revenue of $16.03 billion U.S., compared with 53 cents U.S. a share on revenue of $15.69 billion U.S. in the year-ago period.
Its stock was down about 6% in New York.
The tech sector provided major TSX support despite the Dell disappointment as Celestica Inc. rose 19 cents to $9.42 while CGI Group improved by 15 cents to $21.09.
The TSX energy sector was ahead as Suncor Energy improved by 85 cents to $35.59.
Talisman Energy Inc. shares added 39 cents to $14.24 as it embarked on a partnership with Mitsubishi Corp. to develop natural gas properties in Papua New Guinea.
The base metals sector was ahead with April copper shedding earlier losses and was unchanged at $3.83 U.S. a pound after surging 13 cents on Tuesday. Teck Resources was ahead $1.12 to $40.56 and Ivanhoe Mines climbed 29 cents to $16.94.
The gold sector was the biggest of the gainers as Goldcorp Inc. climbed $1.05 to $49.21
The financials sector was one of the two weakest components with Sun Life Financial down 45 cents to $21.02.
In other earnings news, Sears Canada Inc. said Wednesday it earned $38.7 million or 36 cents per share in its latest quarter, which includes the key Christmas retail period. That compared with net profits of $82.7 million or 77 cents per share a year earlier.
Total revenues for the quarter dropped 6.4% to $1.37 billion from $1.46 billion and its shares gained five cents to $12.00.
ON BAYSTREET
The TSX Venture Exchange strengthened 6.32 points to 1,684.95, while the Nasdaq Canada index fell 0.33 points short of breakeven to 418.52
All but two of the 14 Toronto subgroups were positive on the day. Gold shone 2.2% brighter, while materials grew 1.8%, and telecoms were 1.3% stronger.
The two laggards were real-estate issues, off 0.6%, and financials, down 0.3%.
ON WALLSTREET
In New York, stocks drifted lower Wednesday amid doubts over the latest bailout for Greece and concerns about global economic growth.
The Dow Jones Industrials demurred 27.02 points to end the session at 12,938.70
The S&P 500 deducted 4.57 points to 1,357.64, while the Nasdaq slipped 15.40 points to 2,933.17
Stocks were pressured early Wednesday by news that an index of business activity in the euro-zone contracted in January. That came after a reading on China manufacturing showed a slow pace of growth.
Earnings season rolled on in the States, and, as indicated, Dell’s earnings disappointed. Rival Hewlett-Packard was in focus Wednesday, with quarterly results due after the market closes.
Hewlett-Packard was expected to post earnings of 86 cents U.S. per share, down from $1.36 U.S. a year ago, according to Thomson Reuters.
Luxury homebuilder Toll Brothers posted a $2.79-million U.S. loss Wednesday, compared to a $3.42-million U.S. profit last year. The company's revenues declined and missed expectations.
Apple shared the spotlight as the tech giant faced Chinese company Proview International in a Shanghai courtroom on allegations that it does not own rights to the iPad trademark in China
Netflix's stock continued to lose ground after Comcast said that it is working on a new subscription video-on-demand competitor, named "Streampix." But the streaming service will only be available to those who also subscribe to Comcast cable.
Shares of Johnson & Johnson edged higher after the company announced late Tuesday that CEO Bill Weldon will step down in April.
Chinese Internet giant Alibaba, which has been in the headlines lately for its tussles with stakeholder Yahoo, wants to take its publicly traded Web portal private.
Meanwhile, investors remain skeptical about the latest bailout for Greece, which euro-zone finance ministers approved Tuesday after weeks of negotiations and market speculation.
While the agreement suggests Greece will avoid a default in the near term, analysts warn that the nation will eventually need more support. Greece's fate also depends on whether private-sector investors agree to a historic debt-reduction plan.
Economically speaking, existing-home sales rose 4.3% in January to a seasonally adjusted annual rate of 4.57 million, according to the National Association of Realtors.
Economists were expecting a sales rate of 4.5 million, according to consensus estimates from Briefing.com.
Treasury prices for the 10-year note gained slightly, lowering yields to 2.00% from Tuesday’s 2.04%. Treasury prices and yields move in opposite directions.
Oil for February delivery slipped 18 cents to $106.07 U.S. a barrel.
Gold futures for April delivery rose $9.80 to $1,768.30 U.S. an ounce.
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