The Toronto stock market was lower Tuesday, joining other global markets in pulling back amid worries about the possible ramifications of western countries intervening in Syria's civil war.
The S&P/TSX composite index fell 81.88 points to greet noon at 12,698.42, as two of the big Canadian banks turned in strong earnings reports.
The Canadian dollar slipped 0.03 cents to 95.20 cents U.S.
Bank of Montreal posted net income of $1.137 billion or $1.68 cents per share, up from $970 million or $1.42 per share in the same year-earlier period.
Revenue rose to $4.05 billion from $3.88 billion. Adjusted net income was $1.136 billion, also $1.68 cents per share. Analysts expected $1.52 in adjusted earnings per share and revenue of $3.96 billion and BMO shares gained 18 cents to $65.96.
Scotiabank has increased its quarterly dividend by two cents to 62 cents per share and posted quarterly net income of $1.768 billion or $1.37 per diluted share, compared with net income of $2.051 billion or $1.69 per diluted share in the same year-earlier period.
Revenue rose to $5.52 billion from $5.51 billion. Last year's results benefited from an after-tax gain of $614 million on the sale of Scotia Plaza in Toronto. Ex-items, profit rose 17% to $1.32 a share, beating estimates by two cents but its shares slipped 30 cents to $58.39.
The TSX gold sector ran up as geopolitical worries boosted bullion prices Goldcorp climbed 57 cents to $33.44.
The energy sector rose while the price of oil moved well above $108 U.S. a barrel Tuesday on the latest round of worry centred on the Middle East. Canadian Natural Resources gained 74 cents to $32.17.
The price of oil has risen more than 15% in the past three months on concern that unrest in Egypt and civil war in Syria could disrupt production and exports, especially in Libya and Iraq. It has also raised the spectre of spreading violence that could block important supply routes.
The base metals component was down even as copper also advanced, with the September contract in New York up three cents at $3.35 U.S. a pound. First Quantum Minerals declined 17 cents to $18.66.
The financials sector was a major weight, with TD Bank down 95 cents to $88.25, ahead of the release of the bank's earnings on Thursday.
Industrials also depressed the TSX as Canadian National Railways fell $1.35 to $99.14.
ON BAYSTREET
The TSX Venture Exchange slid 5.11 points to 949.47.
All but three of the 14 Toronto subgroups were lower at the lunch break. Industrials and information technology stocks dipped 1.4% each, while consumer staples faded 1.1%.
The three gainers were gold, up 0.8%, energy, gaining 0.7%, and utilities, progressing 0.5%.
ON WALLSTREET
Fears over a possible U.S. military strike against Syria spooked investors around the world Tuesday.
The Dow Jones Industrials backtracked 92.42 points to greet noon ET at 14,854.
The S&P 500 index fell 14.52 points to 1,642.26. The NASDAQ plummeted 44.71 points to 3,612.86
Investors moved into assets deemed "safe," pushing up the prices of gold and U.S. and German government bonds. Oil prices also surged on fears in the Middle East.
Still, Tuesday's selloff was relatively mild. It is expected to be another light day of trading in the late August doldrums. What's more, major U.S. indexes are still up between 14% and 20% in 2013.
Shares of jewelry retailer Tiffany & Co rose after the company reported better-than-expected quarterly results.
Shares in struggling department store operator J.C. Penney fell on news that activist shareholder Bill Ackman is selling his entire stake of more than 39 million shares.
Shares of electronics retailer Best Buy fell after its founder Richard Schulze announced that he would begin selling his stake in the retailer in October. Last year Schulze attempted to take Best Buy private but was rebuffed by the board.
Economically speaking, U.S. investors got more good news about the housing market. Prices for homes in the nation's 20 largest cities in June rose 12.1% over the last year. That was down slightly from the previous month, but still shows that housing continues to rebound.
Prices for the 10-year U.S. Treasury gained, lowering to 2.76% from Monday’s 2.80%. Treasury prices and yields move in opposite directions.
Oil prices hiked $3.15 to $109.07 U.S. a barrel.
Gold prices leaped $25.40 to $1,418.50 U.S. an ounce.
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