The Toronto stock market moved higher thanks in part to gains in the badly beaten down gold sector but the TSX was weighted down by a 27% plunge in BlackBerry shares after the smartphone maker surprised traders with a quarterly loss and disappointing revenue.
The S&P/TSX Composite Index remained ahead 90.78 points to greet noon at 12,096.56
The Canadian dollar dipped 0.34 at 95.10 cents U.S.
BlackBerry shares tumbled $4.01 to $11.04 after saying that it lost $84 million U.S. in the first quarter, a period when the company launched its latest Z10 touchscreen model in the United States and new keyboard models in Canada and other countries.
That was a big improvement from a $518-million U.S. loss that BlackBerry reported a year earlier as it began a recovery phase under new management. But BlackBerry's adjusted loss from continuing operations was $67 million U.S., or 13 cents per share. Analysts had expected an adjusted profit of six cents per share.
BlackBerry's revenue also was disappointing. It increased to $3.07 billion U.S. from $2.81 billion U.S. a year ago but fell short of the expected $3.38 billion U.S.
Commodity prices were mixed and the beaten up gold sector advanced. Continued speculation about when the U.S. Federal Reserve may ease up on its monthly bond purchases has pushed bullion prices to three-year lows. Gold prices have deteriorated steadily this year as the precious metal loses its appeal as a hedge against inflation and deteriorating currencies.
Barrick Gold Corp. was ahead 20 cents to $15.77. The TSX gold sector is down almost 50% so far this year.
The telecom sector was up with BCE Inc. ahead $1.21, or 2.9%, to $42.84 after the federal broadcast regulator OK'd a bid by its Bell subsidiary to acquire Astral Media and its suite of TV speciality channels and radio stations in a deal worth $3.4 billion.
The Canadian Radio-television and Telecommunications Commission said the revised bid -- in which Bell agreed to sell some of Astral's specialty TV channels and radio stations -- satisfied its concerns that the company would be too dominant in the market.
The consumer discretion sector rose as Shaw Communications Inc. said its overall quarterly net income edged up to $250 million from $248 million a year ago, although earnings per share dropped a penny to 52 cents.
Revenue was up 4% to $1.33 billion. Calgary-based Shaw also said it has been able to minimize flood-related disruptions to its infrastructure in Alberta and is on track to generate more free cash than previously expected in the current financial year. Its shares jumped 79 cents or 3.97 per cent to $24.73.
September copper was two cents higher at $3.07 U.S. a pound and the base metals sector moved up. First Quantum Minerals gained 23 cents to $15.48.
The energy sector was up with Cenovus Energy climbing 49 cents to $30.30.
On the economic slate, Statistics Canada reported this morning that real gross domestic product grew 0.1% in April, a fourth consecutive monthly increase. Service industries led the gain in April.
Moreover, its industrial product price index was unchanged in May from April, and the agency’s raw materials price index rose 0.2% in May, mostly as a result of higher prices for animals and animal products.
ON BAYSTREET
The TSX Venture Exchange gained 7.33 points to 867.37
All but two of the 14 Toronto subgroups were positive by noon, led by gold, sprinting ahead 5.2%, materials, gaining 2.8%, and telecoms, soaring 2%.
The two subgroups were information technology, down 6.8%, and global base metals, down 0.1%.
ON WALLSTREET
Investors remained spooked about the possible end of the Fed's massive bond buying program Friday.
The Dow Jones Industrials retreated 66.62 points to greet noon at 14,957.90
The S&P 500 index gave back 1.96 points to 1,611.24. The tech-rich NASDAQ Composite was negative 1.75 points to 3,400.11
Embattled mobile company Blackberry reported first-quarter results Friday that fell short of analysts' forecasts. Shares tumbled 25%.
Nike shares edged lower in early trading. Despite better-than-expected earnings, analysts worry about Nike's ability to cut costs.
Shares of outsourcing and consulting firm Accenture were lower after it slashed expectations for its year-end results.
Shares of Pfizer edged higher after the drug maker announced late Thursday that it would increase its share buyback program by $10 billion U.S.
Fed officials have been in damage control mode lately about the end of so-called quantitative easing.
But in trying to allay investor fears, Fed Governor Jeremy Stein might have inadvertently stoked them. In a speech Friday morning, he said that the Fed could consider tapering its bond buying in September.
Fed Chairman Ben Bernanke kicked off tumult in the stock, bond and gold markets last week. He said the central bank could wind down its stimulus program later this year, if the economy continues to improve.
Prices for the 10-year U.S. Treasury faded, hiking yields to 2.53% from Thursday’s 2.47%. Treasury prices and yields move in opposite directions.
Oil prices dipped 18 cents to $96.87 U.S. a barrel.
Gold prices erased $20.90 to $1,190.70 U.S. an ounce.
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