The Toronto stock market hung on to a small advance midday Tuesday amid data that indicated the euro-zone economy is improving and a positive reception for BlackBerry’s new Z10 smartphone.
The S&P/TSX composite index gained 16.29 points by noon ET to 12,733.92
The Canadian dollar picked up 0.13 of a cent to 100.26 cents U.S.
BlackBerry shares were up $1.15, or 7.7%, to $16.14 on the TSX as the new touchscreen device went on sale in Canada. It went on sale in the U.K. last week but won’t be available in the U.S. until mid-March because of further testing being done by U.S. phone carriers.
The stock has been very volatile since the new product was launched last Wednesday and analysts say that won’t change until RIM’s next earnings are released in a couple of months and investors find out just well the phone has sold.
In earnings news, telecom provider Bell Aliant Inc. says it had $70 million of net income or 31 cents a share in the fourth quarter, a $10-million decline from the same period of 2011 and well short of analyst estimates. Adjusted earnings came in at 37 cents, four cents less than expectations.
The regional telecom company’s operating revenue was also down, slipping 0.8% to $695 million from $701 million in the fourth quarter of 2011 and its shares were up 56 cents to $26.11.
Industrial stocks helped take the TSX higher with Canadian National Railways ahead 31 cents to $95.46.
The energy sector was up as Imperial Oil climbed 31 cents to $43.98.
March copper was unchanged at $3.77 U.S. a pound and the base metals sector added strength. HudBay Minerals ran up 15 cents to $11.37.
The gold sector deteriorated as Eldorado Gold Corp. faded 14 cents to $11.10.
In other corporate developments, Canadian discount retailer Dollarama Inc. has entered into an eight-year agreement to help Central American chain Dollar City expand its network of stores and provide more products for sale.
The Montreal-based company won’t take on operational responsibilities or make a capital commitment, but could eventually acquire a majority interest in the chain. Dollarama shares were down seven cents to $60.06.
WestJet Airlines gained 46 cents to $22.29 as the carrier reported a record monthly load factor for January as the number of passengers grew 6.4% to 1.5 million.
Its planes flew 80.9% full in the first month of the year, up one percentage point from 79.9% a year ago. Air Canada will also report its monthly traffic numbers Tuesday, ahead of its quarterly results on Thursday.
Across the ocean, Markit, a financial information group, said its purchasing managers’ index for the euro-zone economy rose to a 10-month high of 48.6 in January from 47.2 in December.
Though the index remains below the 50 mark that would indicate expansion, the survey echoes other findings that the worst for the euro-zone economy may be over even though it continues to face a number of headwinds, including the serious government debt problems of many of its members.
ON BAYSTREET
The TSX Venture Exchange docked 0.68 points to break for lunch at 1,215.82
All but four of the 14 Toronto subgroups were higher by early afternoon, led by information technology, soaring 1.8%, while industrials and consumer staples each gained 0.5%.
The four laggards were weighed mostly by gold, off 0.7%, materials, trailing Monday's close by 0.3%, and health-care, 0.1% less hale.
ON WALLSTREET
Stocks rose Tuesday, with the Dow pushing back near 14,000, as investors turned their attention to corporate news.
The Dow Jones Industrial Average recovered 106.44 points to greet early afternoon at 13,985.52
The S&P 500 index reacquired 13.69 points to 1,509.40. The tech-heavy NASDAQ Composite vaulted 32.89 points to 3,164.06
All 30 Dow components were higher, led by Bank of America and Boeing, which hopes the Federal Aviation Administration will allow Dreamliner test flights to find the source of the aircraft's issues.
The highly-anticipated announcement of a $24.4-billion U.S. leveraged buyout of computer maker Dell also helped market momentum Tuesday.
The deal, if completed, would be one of the largest LBOs ever.
Shares of U.K. cable operator Virgin Media rallied 16%, making it the biggest gainer on the Nasdaq. The company confirmed it has been approached by media billionaire John Malone's Liberty Global about a possible deal.
Shares of McGraw Hill dropped 6% after the U.S. Justice Department sued S&P, one of its divisions, over its ratings of sub-prime securities before the financial crisis.
Investors also had a slew of earnings to pore over.
BP kicked off the day with results noting the company paid out billions in fines to the U.S. government, yet shares rose more than 1%,
UBS, meanwhile, posted a $2 billion loss driven by Libor fines. The Swiss banking giant also reported it is capping its largest bonuses at $1.1 million U.S., half the previous cap.
The one key economic report Tuesday -- the Institute for Supply Management's monthly services sector index -- came in slightly below expectations, but investors shrugged that off and kept buying stocks.
The ISM non-manufacturing index moderated to 55.2 in January from 55.7 in the previous month. Market expectations were for a slightly larger decline in the measure to 55.0.
Prices on the 10-year U.S. Treasury picked up some ground, lowering yields to 2.01% from Monday’s 1.97%. Treasury prices and yields move in opposite directions.
Oil prices inched up 63 cents to $96.80 U.S. a barrel.
Gold prices dropped $4.80 to $1,671.60 U.S. an ounce.
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