Toronto’s main stock index moved lower on Friday, as investors remained cautious ahead of results from a stress test of Spanish banks, but BlackBerry maker Research In Motion Ltd was shot higher after results.
The S&P/TSX composite index dipped 71.20 points at the opening bell to 12,267.65
The Canadian dollar eased 0.29 cents Thursday to 101.69 cents U.S.
Research In Motion Ltd reported a narrower-than-expected loss on Thursday and the struggling BlackBerry maker bolstered its cash reserves, sparking optimism ahead of the launch of its make-or-break line of next-generation smartphones. RIM stock shot out of the gate 94 cents, or 13.5%, to $7.90.
Newmont Mining Corp plans to shed workers and cut costs at its giant Indonesian copper and gold mine as it loses a million dollars a day in cash flow because of low output that will continue through next year. Newmont shares were flat soon after the opening bell, at $57.11.
Canacol Energy reported a fall in fourth-quarter profit on lower average daily sales volumes. Canacol shares were trading for 45 cents, the exact same price as yesterday’s close.
Enbridge Inc. has won regulatory approval to add an Alberta crude pipeline at a cost of up to $1.4 billion to move output from Imperial Oil Ltd's Kearl oil sands project and increasing production from others in the region, the company said on Thursday. Early Friday saw Enbridge stock drop 22 cents to $38.47.
Members of United Steelworkers union Local 624 ended a four-month strike at Husky Energy's 155,000 barrel per day Lima, Ohio refinery late on Thursday night, just hours after it began a search for replacement workers. Husky shares demurred nine cents to $26.36.
Lundin Mining is hunting for zinc and copper mine acquisitions and further ways to boost production, CEO Paul Conibear said in Swedish business daily Dagens Industri. Lundin shares were unchanged at $5.02
On the economic calendar, Statistics Canada reported this morning that Gross Domestic Product grew 0.2% in July, after edging up 0.1% in June. Goods production increased 0.2% in July, on the strength of manufacturing and utilities. In contrast, mining and oil and gas extraction as well as construction declined.
The agency said the output of service industries rose 0.2% in July, mainly as a result of increases in retail and wholesale trade, the finance and insurance sector, and accommodation and food services. The public sector (education, health and public administration combined) was essentially unchanged in July.
ON BAYSTREET
The TSX Venture Exchange eked up 0.68 points to 1,322.99
All but two of the 14 Toronto subgroups were off at the outset. Industrials sagged 1.4%, while global base metals wilted 0.9% and energy stocks faded 0.5%.
The two stalwarts were information technology, which ballooned 2.9%, and utilities, inching up 0.04%.
ON WALLSTREET
U.S. stocks opened the last trading day of the third quarter trading lower Friday, as investors remain wary of slowing global growth and renewed worries about Spain.
The Dow Jones Industrial average slipped 86.09 in the first hour of trading to 13,399.90
The S&P 500 began the day down 9.82 points to 1,437.33, while the tech-rich Nasdaq gave back 13.73 points to 3,122.88.
Shares of the drugstore chain Walgreens dropped more than 2%, despite beating analysts' forecasts. Sales and profits were down from a year ago.
Facebook shares rose 3% on news that the company has developed another revenue source: a gift-giving service with partners like Starbucks, Magnolia Bakery and 1-800-Flowers.
Shares of Research in Motion jumped nearly 10%, after the BlackBerry maker reported a narrower-than-expected loss and beat expectations on revenue.
Shares of Nike fell 2%, even though the athletic shoe maker beat forecasts on both revenue and profits.
Investors are focused on Europe after the release of Spain's 2013 budget on Thursday. The proposed budget boosted U.S. stocks late Thursday, as many interpreted it as a sign the country is willing to take necessary steps to avert a deepening crisis. But that relief may prove ephemeral as concerns about Spain remain.
Spanish banks will receive auditors' results of stress tests later Friday, which will give investors a clearer view of the area's economic struggles. The nation's bonds could also be in for a downgrade from Moody's, according to reports. Yields for the 10-year Spanish bond pushed above 6% again on Friday.
On the economic lookout, the first domestic report of the day showed U.S. personal income grew at 0.1% in August -- the same as July. Personal spending rose 0.5%, slightly higher than in July. Both are signs the recovery continues to struggle.
Meanwhile, the Bureau of Economic Analysis reported that core prices of household goods and services rose 0.1% in August, as expected.
Later on this morning, the Chicago Purchasing Managers Index for September -- a manufacturing measure -- will be published, followed by the University of Michigan releasing the final edition of its consumer sentiment index for September.
The price on the benchmark 10-year U.S. Treasury gained, lowering yields to 1.61% from Thursday’s 1.64%. Treasury prices and yields move in opposite directions.
Oil for November delivery was unchanged in price at $91.85 U.S. a barrel.
Gold futures for December delivery dropped $4.60 to $1,776.20 U.S. an ounce.
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