The Toronto stock market was higher Thursday amid a mixed reception to a string of positive earnings reports from Canada’s big banks and generally lower commodities.
The S&P/TSX composite index took on some momentum during the afternoon to gain 88.51 points, and close at 12,820.90
The Canadian dollar plummeted 0.73 at 97 cents U.S.
TD Bank reported $1.79 billion of net income before adjustments, about $300 million higher than the same time last year, and said its quarterly dividend will rise by four cents to 81 cents per share starting in April.
Ex-items, earnings rose to $2, beating analysts’ expectations of $1.92 a share, and its shares gained 62 cents to $84.91, despite lower results in its wholesale banking revenue.
Royal Bank of Canada has announced a dividend increase along with its latest financial report, which included a record profit at RBC’s core segment and adjusted earnings that beat analyst estimates.
RBC’s first-quarter net income was up by $215 million to $2.07 billion, or $1.36 per share, and its quarterly dividend will rise five per cent to 63 cents per share. Excluding special items, the bank earned $1.38 a share, seven cents higher than analysts’ expectations. Its shares advanced 63 cents to $64.11.
CIBC says its net income slipped to $798 million or $1.91 a share in the first quarter of its current financial year, down from $835 million a year earlier. Results were impacted by a $148-million loss from the settlement of a contract dispute linked to the collapse of Lehman Bros. in 2008.
Ex-items CIBC earned $2.15 per share, seven cents better than estimates. But unlike the other two banks, CIBC didn’t increase its dividend and its shares slipped 75 cents to $83.13.
The tech sector was a major advancer, with BlackBerry ahead 19 cents to $13.77.
Strength also came from the industrials sector as Canadian National Railways ran ahead $2.98 to a fresh 52-week high of $104.66.
The energy sector was ahead as Cenovus Energy rose 61 cents to $33.39.
In the gold sector, Iamgold declined 32 cents to $6.95.
The base metals sector was down while May copper was down two cents at $3.55 U.S. a pound.
In other earnings news, bakery and grocery company George Weston says net earnings fell 40% in the fourth quarter to $65 million or 43 cents per share. That helped to pull full-year profits down more than 23 per cent amid restructuring and other charges aimed at shoring up its competitive position.
Earnings ex-items were $1.02 per share compared with $1.01 in the same period in 2011 and its shares rose 92 cents to $74.55.
Valeant Pharmaceuticals International posted a quarterly net loss of $89.1 million, or 29 cents per diluted share, in the latest period. Adjusting for one-time items, the company earned $1.22 per share, two cents below analyst forecasts. Its shares gained $1.30 to $69.55.
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 gained 2.24 points to 1,133.36
ON WALLSTREET
U.S. stocks were lower Thursday, with the Dow Jones Industrials stalling just below its all-time high.
The Dow slumped 20.88 points to finish at 14,054.50. The index is now about 0.7% from its all-time high of 14,198.10, reached in October 2007.
The S&P 500 index subtracted 1.43 points to 1,514.56. The tech-heavy NASDAQ Composite subsided 2.07 points to 3,160.19.
Thursday marks the last trading day of February, which has largely been a dud for stocks. The Dow and S&P 500 are on track to gain between 1.3% and 1.6% for the month, while the NASDAQ is up less than 1%.
Even with the sluggish trading this month, all three indexes are still up roughly 6% to 7% for the year. And the S&P 500 is less than 4% from its all-time highs reached in October 2007.
On the corporate front, Barnes & Noble shares rose after CEO William Lynch Jr. told investors on an analyst call that the bookseller was taking steps to "right size our cost structure in the Nook segment." His comments came after Barnes & Noble said that its Nook sales plummeted 26% compared with the year-earlier quarter.
Department store chain Sears Holdings reported sales notched up 0.8% at stores open a year or more 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.
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 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.
Monster Beverage's stock rose after the energy drink maker's earnings climbed more than 5%. The company's sales also improved but fell short of forecasts.
Clothing retailer Gap is on tap to report earning after the bell.
Economically speaking, jobless claims fell sharply last week, but 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.
A report from the Institute for Supply Management showed that business activity in the Midwest region picked up in February, with the index rising to a 11-month high.
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 slipped 72 cents to $91.94 U.S. a barrel.
Gold prices dumped $18.10 to $1,577.60 U.S. an ounce.
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