Markets in Toronto eked higher at the open Thursday, buoyed in part by better-than-expected results from three of the major banks.
The S&P/TSX composite index inched up 5.02 points to begin Thursday at 12,737.41
The Canadian dollar was down 0.36 at 97.37 cents U.S.
Royal Bank of Canada reported a stronger-than-expected 12% rise in quarterly profit on the back of stronger loan growth and capital markets income, prompting the bank to raise its dividend by 5%. Royal shares hiked 80 cents in the session’s first hour to $64.28.
Toronto-Dominion Bank reported a 21% rise in quarterly profit, driven by loan growth at its Canadian and U.S. retail banks and allowing it to raise its dividend by 5%. TD shares took on 44 cents to $84.73
Canadian Imperial Bank of Commerce reported a 4% drop in quarterly profit due largely to a $148-million charge for a legal settlement with bankrupt U.S. bank Lehman Brothers. CIBC shares docked 20 cents to $83.68 at the outset.
Valeant Pharmaceuticals International Inc, the largest publicly traded drug maker in Canada, reported a fourth-quarter loss, largely due to costs related to its $2.6-billion acquisition of Medicis Pharmaceuticals Corp. Valeant shares fell 48 cents to $67.77
Elsewhere, pharmacy benefit manager Catamaran Corp. reported a 59% jump in fourth-quarter profit, helped by the acquisition of HealthTran. Catamaran shares plummeted $2.19, or 3.7%, to $54.58.
Chinese oil company CNOOC Ltd is giving the leader of Nexen Inc. freedom to get operations running smoothly after an exhaustive seven-month acquisition process. Nexen shares grew six cents to $28.24
On the economic front, Statistics Canada reported this morning that its raw materials price index gained 3.8%, mostly because of higher prices for crude oil. The industrial products price index remained static in January from December, as lower prices for chemical products largely offset gains elsewhere, including an advance in petroleum and coal products.
ON BAYSTREET
The TSX Venture Exchange dropped 1.03 points to 1,130.09
The 14 Toronto subgroups were evenly divided between gainers and losers. Information technology proved the top gainer, picking up 0.7%, industrials being next at 0.5%, while consumer staples improved 0.4%.
The seven laggards were weighed mostly by gold, down 0.8%, while materials and global base metals slid 0.5% each.
ON WALLSTREET
U.S. stocks opened with modest gains Thursday as investors weighed better-than-expected jobless claims data against a lackluster report on the nation's economic growth
The Dow Jones Industrial Average edged up 6.58 points to 14,082.
The S&P 500 index added 2.63 points to 1,518.62. The tech-heavy NASDAQ Composite prospered 13.98 points to 3,176.24.
While jobless claims fell sharply last week, the government's second estimate of fourth-quarter GDP showed a nearly imperceptible gain of 0.1%.
The revised reading fell short of the 0.5% growth economists were expecting.
Thursday marks the last trading day of February, which has largely been a dud for stocks. But following a massive rally in January, it hasn't been a surprise for stocks to pull back.
Even with the sluggish trading this month, all three indexes are still up roughly 6% to 7% for the year. The Dow is within 67 points, or 0.5%, of its all-time high, set in October 2007. The S&P 500 is just 3% away from its record high, also set in October 2007
On the corporate front, Barnes & Noble shares edged lower after the bookseller reported a 9% drop in quarterly sales and a net loss of $6 million U.S. The company said that its Nook sales plummeted 26% compared with the year-ago quarter.
Department store chain Sears Holdings Corp reported sales at stores open a year or more notched up 0.8% in the fourth quarter but fell 1.4% for the year. The company said that it has closed 300 Sears and Kmart stores, or 13% of its total, since 2006. Shares declined more than 1%.
J.C. Penney shares tumbled after the retailer reported a dismal fourth-quarter loss and weak same-store sales.
Groupon shares plunged after the daily deals site's results missed already low expectations.
Shares of Sturm, Ruger & Co. slipped even after the gun maker reported earnings that beat expectations. The company benefited from a surge in firearm sales on growing fears of new gun-control laws following the re-election of President Obama and the shooting in Newtown, Conn.
Clothing retailer Gap is on tap to report earning after the bell.
Prices on the 10-year U.S. Treasury gained a bit, lowering yields to 1.89% from Wednesday’s 1.90%. Treasury prices and yields move in opposite directions.
Oil prices gained 13 cents to $92.89 U.S. a barrel.
Gold prices slipped $6.50 to $1,589.20 U.S. an ounce.
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