The Toronto stock market was lower midday Tuesday, as positive economic data was trumped by uncertainty surrounding negotiations aimed at steering the U.S. economy away from a fiscal crisis at the end of next month.
The S&P/TSX Composite Index slid 32.78 points to approach noon at 12,152.27
The Canadian dollar ducked back 0.01 cents to 100.65 cents U.S.,
Weakness was offset somewhat by a gain of almost 9% in Bombardier Inc. shares to $3.40.
The transport giant announced what it calls the biggest sale of business aircraft its history — a firm order by charter company VistaJet for 56 Bombardier Global jets valued at $3.1 billion along with options for 86 others. The deal could potentially be worth up to $7.8 billion if all options are exercised.
Research in Motion Ltd. also weighed on the TSX as its stock moved down 6.4% to $11.11 after soaring more than 25% over the previous six sessions.
RIM gathered momentum from a variety of analyst upgrades amid optimism about the launch of its new BlackBerry 10 operating system, which will be unveiled at a Jan. 30 event along with its new line of smartphones. It’s viewed as a make or break product launch for Research In Motion.
The gold sector was down as Goldcorp Inc. faded 77 cents to $40.01 while Agnico Eagle Mines fell 87 cents to $56.02.
The mining sector was off with December copper down one cent at $3.54 U.S. a pound. First Quantum Minerals declined 37 cents to $21.09 and Major Drilling Group fell 35 cents to $9.01 as the company reported lower earnings and revenue for the latest quarter.
The energy sector was flat as Cenovus Energy slipped 32 cents to $32.49.
ON BAYSTREET
All but three of the 14 Toronto subgroups remained off by noon. Gold stocks stumbled 1.2%, health-care was 1.1% less robust and information technology gave back 1%.
The two gainers were industrials, ahead 0.7%, and financials, eking up 0.01%, while utilities were flat at noon hour.
ON WALLSTREET
U.S. stocks were mixed Tuesday, as investors remain worried about the contentious fiscal cliff battles in Washington.
Investors shrugged off strong reports on housing and consumer confidence, as well as the latest news from Greece, where leaders struck a deal for the nation to avoid defaulting on its debt.
The Dow Jones Industrials gave back 12.40 points to 12,955.
The S&P 500 moved 2.12 points higher to 1,408.41, and the Nasdaq Composite Index poked higher 1.71 points to 2,978.49.
Packaged food maker ConAgra announced it has reached a deal to buy Ralcorp, the largest U.S. manufacturer of private label food, for $90 U.S. a share in cash -- a 28% premium from Monday's closing price.
Swedish telecommunications company Ericsson said it was suing South Korean electronics maker Samsung for patent infringement.
Shares of Facebook were little changed Tuesday after rising more than 8% Monday following the upgrade of the stock by several analysts. Facebook has rallied nearly 50% since touching a low of $17.55 in early September. The stock, currently around $26 U.S., is trading at its highest level since late July. Shares of Facebook .
Shares of Green Mountain Coffee Roasters rose more than 2% ahead of the company's earnings release, due out after the closing bell.
Hewlett-Packard still reeling from its $8.8-billion U.S. writedown tied to its $11-billion U.S. buyout of software firm Autonomy, dragged down the Dow, dropping more than 2%. HP is now facing lawsuits from investors related to the acquisition.
Now that Congress is back in session after the Thanksgiving break, lawmakers are under pressure to reach a deal with the White House before the end of the year in order to avoid falling over the fiscal cliff.
Euro-zone finance ministers and the International Monetary Fund announced late Monday they had reached an agreement that moves Greece closer to receiving a massive bailout payment. The deal includes lower interest rates for Greece, a debt buyback and more time for the debt-laden country to repay its rescue loans.
Yet Europe's woes continue to weigh on the U.S. The Organization for Economic Cooperation and Development warned early Tuesday that Europe's worsening economy next year will slow U.S. growth more than previously forecast.
Economically speaking, the Case-Shiller 20-city index showed that U.S. home prices vaulted 3.6% in the third quarter, up from one year ago and exceeding expectations of 3.1% -- the biggest increase since the second quarter of 2010 and triple the increase from the prior quarter. Home prices rose 2% in August.
On the domestic front, investors will continue to keep an eye on negotiations in Washington. With Congress back in session, lawmakers are under pressure to reach a deal with the White House before the end of the year in order to avoid falling over the fiscal cliff.
New orders of durable goods were flat in October, according to a U.S. Census Bureau report released Tuesday. Excluding transportation, new orders rose 1.5% in October.
The Conference Board released a better-than-expected reading on consumer confidence. November's figure is particularly important, as retailers gear up for the holiday shopping season.
Treasury prices gained strength, lowering yields to Monday’s 1.66%. Treasury prices and yields move in opposite directions.
Oil prices shed 16 cents to $87.56 U.S. a barrel.
Gold prices slid $4.20 an ounce to $1,745.40 U.S.
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