The Toronto stock market racked up a modest advance late morning Tuesday amid mixed economic data from the U.S. and an earnings report from Bank of Montreal that beat expectations.
The S&P TSX Composite Index approached noon Tuesday up 32.81 points to 12,733.19.
The Canadian dollar was up 0.32 cents at 100.44 U.S. cents
Bank of Montreal kicked off the big banks’ quarterly reporting season by handing in first-quarter profits that rose 34% to $1.1 billion or $1.63 a share. On an adjusted basis, earnings were $1.42 per share, beating analyst estimates by six cents. Revenue increased to $4.12 billion from $3.47 billion and its shares rose 53 cents to $58.54.
The bank benefited from its major expansion into the U.S. with the recent acquisition of Milwaukee-based Marshall & Ilsley Corp. and analysts believe those deals will continue to help boost results.
TD Bank, Royal Bank and National Bank all report on Thursday.
A major early decliner was engineering group SNC-Lavalin Group Inc. The company announced it needs to investigate $35 million in undocumented payments booked last year, it is cutting its 2011 profit forecast by 18% and delaying the release of its fourth-quarter and full-year financial results. Its shares tumbled $11 or 22.7% to $37.37.
The gold sector was ahead as Goldcorp Inc. rose 53 cents to $48.88.
The TSX energy sector was flat as Cenovus Energy lost 21 cents to $38.55.
Crude has jumped 13% this month, largely over concerns about Iran’s nuclear program and the worry about supply disruptions from the Mideast. The sudden surge has raised concerns about how higher crude prices could affect the U.S. economic recovery, pressure corporate earnings and worsen a European recession.
The base metals sector was down even as copper prices continued to surge with the March contract up three cents to $3.91 U.S. a pound. Prices for the metal are up about 3.5% this month on signs of improving economic growth in the U.S. and hopes that China will further relax lending standards to encourage growth. China is the world’s biggest consumer of the metal.
Shares in molybdenum producer Thompson Creek Metals Co. Inc. fell $1.10 or 12.7% to $7.56 as it reported a small quarterly profit of $800,000 U.S. Revenue fell to $116.7 million U.S. from $156.8 million U.S., reflecting a sharp drop in the price of molybdenum, which is used in high-strength steel alloys.
Elsewhere in the sector, First Quantum Minerals rose 23 cents to $22.95.
In other earnings news, Ritchie Bros. Auctioneers Inc., the world’s largest auctioneer of industrial equipment, reported its net profits rose to $76.6 million U.S., or 72 cents a share for 2011. That compared to net earnings of $65.7 million U.S. or 61 cents in 2010. Ritchie said its fourth-quarter profits more than doubled to $26.8 million. Ritchie shares lost $1.57 to $24.01.
ON BAYSTREET
The TSX Venture Exchange regained 8.31 points to 1,687.81, while the Nasdaq Canada index inched up 1.69 points to 427.62
The 14 Toronto subgroups were evenly divided by midday between gainers and losers. Industrials plummeted 3%, however, while utilities and the metals and mining group each capsized 0.5%.
The seven gainers were led by gold, up 1%, while materials soared 0.9%, and consumer staples hiked 0.7%.
ON WALLSTREET
In New York, stocks inched higher Tuesday, as investors weighed a small pullback in oil prices and improving consumer confidence against a worse-than-expected drop in durable goods orders
The Dow Jones Industrials was positive 25.09 points by noon to 13,006.60
The S&P 500 added 4.75 points to 1,372.34, while the Nasdaq gained 18.33 points to 2,984.49
Shares of AutoZone rose Tuesday, after the auto parts retailer's fourth-quarter earnings and sales figures rose and topped analyst expectations. Same-store sales at AutoZone improved almost 6% during the last quarter of 2011.
Shares of Apollo Group tumbled after the operator of for-profit University of Phoenix issued a downbeat outlook for 2012, forecasting sluggish growth in new degree enrollment during the second quarter. Shares of fellow for-profit college DeVry also fell.
Cablevision posted earning that were a penny shy of expectations, but sales that were a bit higher than estimates. Shares of the cable provider were flat.
Priceline.com shares spiked after the online travel company beat earnings and revenue expectations late Monday, thanks to strong growth in international hotel bookings.
Dreamworks Animation is slated to report corporate results after the bell Tuesday. Dreamworks is expected to post earnings of 32 cents U.S. per share.
Investors have been keeping a close watch on the oil market, where crude futures rose almost 9% in seven consecutive days, settling at a nine-month high above $109 U.S. a barrel Friday, amid concerns about increased tensions between Iran and Western powers.
The rise in oil prices has translated into higher gas prices, with the national average rising 21 straight days.
But crude futures eased for a second straight day Tuesday, easing worries that higher gas prices could cause the economic recovery to stall if consumers change their spending habits.
Stocks also picked up some momentum after the Conference Board reported a big spike in consumer sentiment in February, with the index now at a one-year high.
However, the optimism was somewhat dampened by a 4% plunge in durable goods orders, the biggest drop in three years.
On Monday, the German Parliament approved the nation's contribution to a second bailout for Greece. Later in the day, S&P downgraded Greece's credit rating to "selective default" after the government took legal steps to impose losses on all holders of Greek government bonds.
Investors are growing optimistic ahead of the European Central Bank's second so-called long-term refinancing operation (LTRO) on Wednesday. The central bank will hold its second auction to allow banks to take three-year loans at low interest rates, bolstering their balance sheets.
In its first auction in December, banks borrowed €489 billion from the ECB. Most analysts are expecting the size of the ECB's refinancing stimulus to be even larger on Wednesday, with a high estimate of €1 trillion.
Economically speaking, durable goods orders tumbled 4% in January, following a 3.2% increase the month before. Analysts were expecting that orders slipped 1.3% during the month.
The Conference Board's consumer confidence index rose in February to the highest level in a year. The index climbed to 70.8 from 61.5 in January. Economists were expecting the index to rise slightly to 63.5.
National home prices fell 4% in the fourth quarter of 2011, putting them back at levels last seen in mid-2002, according to the S&P/Case-Shiller national home price index. That's the fifth consecutive annual loss and the biggest decline since 2008, when markets were in freefall and prices plummeted more than 18%.
Treasury prices for the 10-year note lost ground, powering yields up to Monday’s 1.92%. Treasury prices and yields move in opposite directions.
Oil for February delivery slipped 33 cents to $108.23 U.S. a barrel.
Gold futures for April delivery rose $10.40 to $1,785.30 U.S. an ounce.
Related Stories
