Stocks in Toronto were virtually unchanged at the open on Tuesday, as worries over U.S. monetary and fiscal policies dampened investor sentiment
The S&P/TSX composite index inched up 7.42 points to begin Tuesday at 12,818.60
The Canadian dollar slid 0.11 cents to 97.13 cents U.S.
Shares of BlackBerry Ltd were expected to be active after the smartphone maker agreed on Monday to go private in a $4.7-billion U.S. deal led by its biggest shareholder. But the buyer still has to finalize financing and BlackBerry is free for now to seek better offers.
BlackBerry shares settled 23 cents to $8.85
Sears Canada Inc. said Chief Executive Calvin McDonald resigned and that Chief Operating Officer Douglas Campbell would take over, effective immediately. Sears shares were flat at $12.41.
RBC started coverage on Brookfield Residential Properties Inc with outperform rating; price target of $27, saying the company is positioned to deliver strong earnings growth. Brookfield shares gathered 28 cents to $22.93.
Raymond James cut the rating on Calfrac Well Services Ltd. to market perform from outperform, also cutting the target price to $35 from $39, saying AECO gas price is a concern. Calfrac shares retreated 82 cents to $32.51.
On the economic front, Statistics Canada told us this morning that retail sales rose 0.6% in July, led by higher sales at gasoline stations. The market call was for a gain of 0.5%.
Sales have been trending upwards since the beginning of 2013. Gains were reported in eight of the 11 sub-sectors, representing 52% of total retail trade.
ON BAYSTREET
The TSX Venture Exchange eked ahead 0.14 points to 945.04
Of the 14 Toronto subgroups, eight were higher, led by financials, up 0.4%, consumer staples, up 0.3%, and health-care, better by 0.2%.
The six laggards were weighed by metals and mining, down 1.1%, global base metals, off 0.7%, and information technology, retreating 0.5%.
ON WALLSTREET
Investors are weighing the possibility that the U.S. government might shut down on October 1.
The Dow Jones Industrials shed 55.99 points to kick off the session at 15,345.40
The S&P 500 index faded 4.33 points to 1,697.51. The NASDAQ dropped 10.42 points to 3,754.87.
But even if a shutdown is avoided, the bigger concern is whether Congress will raise the debt ceiling before the drop-dead deadline of October 18. If that doesn't happen, the government risks defaulting on its debt. Another credit rating downgrade could be in the cards, too.
Positive signs from the housing market weren't enough to boost stocks. Home prices continued to climb in July, according to S&P/Case-Shiller data.
Homebuilder Lennar reported a boost in quarterly earnings and revenue compared to the year-earlier quarter, with a significant increase in new-home orders. KB Home also beat expectations for its earnings.
Facebook shares rose nearly 4% and hit a new all-time high. The stock, which only recently topped its previous record of $45 U.S. from its IPO day, is now flirting with $50 U.S. a share.
An analyst at Citigroup upgraded the stock to a buy. There are also reports that China may soon loosen some of its Internet restrictions, which could pave the way for Facebook to enter the world's most populous market.
Chip equipment maker Applied Materials announced a $29-billion U.S. merger with Tokyo Electron Limited "to create a global innovator in semiconductor and display manufacturing technology." Shares of Applied Materials rose on the news.
Shares of Red Hat, a business software maker, fell due to concerns about sales growth for the rest of the year.
Carnival's stock plunged after the cruise operator reported a drop in profits.
BlackBerry announced late Monday that its largest shareholder, Fairfax Financial, was leading a group to acquire the troubled company for $9 U.S. a share. Blackberry shares edged lower Tuesday and remain below the $9 mark.
Prices for the 10-year U.S. Treasury gained, lowering yields to 2.69% from Monday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices faded one dollar to $102.59 U.S. a barrel.
Gold prices fell $16.20 at $1,310.80 U.S. an ounce.
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