The Toronto stock market was slightly lower Friday near midday while U.S. markets pulled back even further as the "fiscal cliff" deadline looms, creating more uncertainty about the economy.
The S&P/TSX composite index dipped 5.19 points to approach noon at 12,383.52
The Canadian dollar erased 0.63 cents to 100.62 cents U.S.
March copper was up 3.4 cents at $3.57 U.S. a pound.
Cogeco Cable Inc. signed a friendly $526-million deal to buy Canadian Internet infrastructure provider Peer 1 Network Enterprises. Cogeco Cable shares were down 4.1% to $1.69.
Shares of Research In Motion fell 15% after the BlackBerry maker reported its latest quarterly results late Thursday. The company's loss on an adjusted earnings basis of $114 million U.S., or 22 cents per diluted share, was 10 cents above the consensus estimate of 32 cents per adjusted share on revenue of $2.6 billion.
But analysts responded negatively to RIM's early details of a new plan that could see its lucrative one-plan-fits-all service fees turned
into an a la carte menu, which some believe could negatively affect revenues generated by company. RIM shares fell $2.13 to $11.82.
On the economic front, Statistics Canada reported that real gross domestic product crept up 0.1% in October, following no growth in September and a 0.1% decline in August.
Moreover, consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index since October 2009.
Elsewhere, the Conference Board of Canada said Friday that its index of consumer confidence was down again in December, the third month in a row, dropping by 2.4 points from the previous month to 77.9.
The index is based a monthly survey of consumer attitudes about a number of personal and general financial issues.
ON BAYSTREET
The TSX Venture Exchange eased 4.30 points to 1,176.20
Nine of the 14 Toronto subgroups were lower Friday. Information technology issues took a 5.8% pasting, while global base metals slid 0.9%, metals and mining fell 0.7%.
The five gaining groups were led by gold, up 0.8%, telecoms, ahead 0.5%, and materials, up 0.2%.
ON WALLSTREET
U.S. stocks dropped more than 1% Friday, as investors grow increasingly concerned about the latest signs of gridlock in Washington.
The Dow Jones Industrial Average descended 172.90 points, or 1.3%, by noon Friday to 13,138.80
The S&P 500 moved down 19.18 points to 1,424.51. The Nasdaq Composite slumped 44.23 points to 3,006.16.
But even after Friday's drop, both the S&P and Nasdaq remain up 1% for the week, despite the ongoing gridlock over the fiscal cliff in Washington.
In company news, shares of Blackberry maker Research in Motion fell more than 15% on Friday, after the company reported Thursday afternoon that sales for the latest quarter fell 47%.
Nokia announced an agreement to settle all patent claims with RIM early Friday, however, financial terms were not disclosed.
Meanwhile, Nike shares rose 4% after the apparel giant posted quarterly earnings Thursday afternoon that beat expectations.
Shares of Walgreens fell 2.8% Friday, after the company's quarterly results showed earnings and sales dropped versus a year ago.
Adding to the drama on trading desks today, it's "quadruple witching day" -- when investors close out contracts on stock futures and other stock options. Market movements up or down are typically magnified on these four trading days each year.
Lawmakers in the House failed to support the so-called "Plan B", a proposal backed by House Speaker John Boehner, late Thursday. The White House had already threatened to veto that plan, saying it would bring only "minimal" changes in projected budget deficits, but its failure underscored the lack of progress on Capitol Hill as the cliff draws nearer.
Economically speaking, data released by the U.S. government Friday morning showed that personal income rose 0.6% in November, while spending increased 0.4% -- both figures came in higher than expected.
A report on consumer sentiment from the University of Michigan and Thomson Reuters came in lower than expected.
Treasury prices regained some ground, lowering yields on the 10-year note to 1.75% from Thursday’s 1.80%. Treasury prices and yields move in opposite directions.
Oil prices plunged $1.75 to $88.38 U.S. a barrel.
Gold prices recovered $8.40 to $1,654.30 U.S. an ounce.
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