The TSX was slightly higher Thursday with strength coming from mining stocks while the market gave a tepid reception to higher profits at Royal Bank and CIBC
The S&P/TSX Composite Index remained positive 15.44 points to reach noon at 12,748.05
The Canadian dollar inched up 0.39 cents to 97.01 cents U.S.
Royal Bank posted $1.9 billion of net income in the second quarter, up 26% from a year earlier. The profit amounted to $1.27 share while adjusted diluted EPS was $1.31, which met a Thomson Reuters estimate but missed a Bloomberg estimate by a penny. RBC shares lost $1.24 to $62.74.
CIBC had a second-quarter profit of $876 million, up 8% from a year ago. Its net income and adjusted net income both came in at $2.12 per share, above the consensus estimate. CIBC said its quarterly dividend will rise by two cents to 96 cents per share.
CIBC also said it has taken steps to create alternatives in case it does not renew its Aeroplan credit card agreement with Aimia, which is set to expire at the end of the year.
President and chief executive Gerry McCaughey didn’t rule out the possibility of renewing the existing contract with the company formerly known as Aeroplan, which has partnered with the bank for more than two decades to create the popular CIBC Aerogold Visa.
CIBC shares dipped 70 cents to $79.73 while Aimia slipped 11 cents to $15.06.
The gold sector advanced, while Barrick Gold Corp. jumped $1.35 to $21.88 while Goldcorp Inc. ran ahead $1.20 to $29.90.
The base metals sector rose as copper futures were ahead two cents at $3.32 U.S. a pound. Teck Resources advanced 91 cents to $28.81.
Most bank stocks were lower, taking the financial sector down as Bank of Montreal shed 39 cents to $62.11.
The energy sector fell as Canadian Natural Resources was down 25 cents to $31.83.
In the economic docket, Statistics Canada said its industrial product price index slid 0.8% in April, due to declining petroleum and coal prices. In the same month, the agency said its raw materials price index fell 2.2%, mostly because of decreased prices for crude oil.
ON BAYSTREET
The TSX Venture Exchange moved 4.01 points higher to 957.22
Of the 14 Toronto subgroups, gainers and losers were in equal number. Gold sprinted ahead 4.6%, materials up 2.9%, and the metals and mining group improved 1.4%.
The seven laggards were weighed mostly by real-estate, down 1%, telecoms, off 0.6%, and utilities, sliding 0.5%.
ON WALLSTREET
A sharp selloff in Japanese stocks Thursday didn't spill over to Wall Street.
The Dow Jones Industrials regained 69.99 points to open Thursday at 15,372.80
The S&P 500 index gained 10.29 points to 1,658.65. The tech-rich NASDAQ Composite added 27.26 points to 3,494.78
Warren Buffett has complained about the dearth of big deals. He put Berkshire Hathaway's money where his mouth is late Wednesday when his firm acquired MidAmerican Energy.
Shares of MidAmerican's parent company, NV Energy surged on the news that Berkshire will pay a 23% premium for the company.
The battle for Sprint took another turn, after Dish Network raised its offer for Clearwire late Wednesday, topping the bid from Sprint Nextel. Dish is locked in a takeover battle for Sprint with Japan's SoftBank.
Discount retailer Costco reported slightly better-than-expected quarterly earnings, although revenue came in just short of estimates.
Big Lots announced that profits and same store sales dropped in the first quarter.
Electric car maker Tesla will triple its network of rapid charging stations to allow drivers to travel from Los Angeles to New York by year's end, CEO Elon Musk announced at the All Things Digital conference in California late Wednesday.
Late Wednesday, Moody's cut the credit rating of Dow component Alcoa to junk bond status.
Shares of information data storage equipment maker EMC got a lift after it announced its first quarterly dividend and increased the side of its share repurchase program.
Economically speaking, ahead of the opening bell, the U.S. government released weekly data on initial jobless claims that showed a slight uptick and was higher than expected.
Meanwhile, the government's second estimate of first-quarter gross domestic product came in at 2.4%, below the first estimate released last month.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.13% from Wednesday’s 2.12%. Treasury prices and yields move in opposite directions.
Oil prices moved higher by 41 cents to $93.54 U.S. a barrel.
Gold prices were positive $21 to $1,412.30 U.S. an ounce
Related Stories
