The Toronto stock market was slightly lower Tuesday amid reports that U.S. senate leaders were close to reaching a deal to increase the country's debt ceiling and forestall a possible default.
But optimism faded somewhat shortly after the open on word that Republicans in the House of Representatives plan to push forward their own bill to reopen the government and raise the debt limit.
The S&P/TSX composite index eased 2.67 points – off its lows of the morning -- to greet noon at 12,889.44
The Canadian dollar dropped 0.15 cents to 96.44 cents U.S.
Markets were closed Monday for Thanksgiving Day.
The industrials sector declined as the Teamsters union warned of a potential strike or lockout at Canadian National Railways starting on Oct. 28.
The union represents some 3,300 conductors, trainmen, yardmen and traffic co-ordinators at CN. Spokesman Roland Hackl says concessions being sought would see CN workers work longer hours with less rest time in between trips. CN shares fell 84 cents to $108.65.
The financials sector was also lower.
The Sunday Times reported that TD Bank is considering buying the Royal Bank of Scotland's U.S. retail business Citizens for $13 billion U.S. TD Bank and RBS both declined comment on the report and TD shares fell 49 cents to $92.02.
Commodities were generally lower after optimism over reaching a U.S. debt deal sent prices higher for copper, oil and gold on Monday.
The base metals sector advanced with December copper unchanged at $3.30 U.S. a pound. Teck Resources climbed 79 cents to $27.95.
The gold sector climbed as Barrick Gold Corp. was ahead 21 cents to $18.02.
The energy sector was ahead as Canadian Natural Resources gained 63 cents to $33.93.
Elsewhere on the corporate front, BlackBerry rose eight cents to $8.43 as it appealed to customers to stay with the troubled smartphone maker as it restructures.
In an open letter released Monday afternoon on Twitter and Facebook, and in some newspapers Tuesday, BlackBerry tells its "customers, partners and fans" that they can continue to count on the company.
Wi-LAN Inc. announced patent settlement deals with U.S. tech companies Hewlett-Packard Co. and Novatel Wireless Inc. The deals end litigation with both. Financial terms were not disclosed.
Wi-LAN has licensed its intellectual property to more than 270 companies worldwide that manufacture or sell a wide range of communication and consumer electronics products. Wi-Lan shares gained five cents to $4.17.
Speaking of things economic, national home sales edged up 0.8% from August to September. Figures released today by the Canadian Real Estate Association also say actual activity came in 18.2% above levels in September 2012.
ON BAYSTREET
The TSX Venture Exchange gained 1.41 points to pause for noon Tuesday at 930.78
The 14 Toronto subgroups were evenly divided between gainers and losers, the former group led by global base metals, up 1.3%, their cousins in the metals and mining sector and information technology each climbing 0.9%.
The seven laggards were weighed by health-care and consumer staples, each sliding 0.5%, and industrials, suffering 0.3%
ON WALLSTREET
Investors moved to the sidelines Tuesday as they waited for developments in Washington and digested a batch of earnings.
The Dow Jones Industrials fell 47.58 points, to hit midday at 15,253.70
The S&P 500 index stepped back 3.07 points to 1,707.07. The NASDAQ was down 8.08 points to 3,807.20
On the earnings front, Citigroup was the latest big bank to disappoint investors. The company reported third-quarter profits and revenues that fell short of analysts' expectations, sending shares lower. The bank noted that the spike in interest rates over the summer caused a slowdown in new mortgages and re-financings, as well as bond trading.
Coca-Cola shares rose after the beverage maker reported an increase in its third-quarter profit, as global sales volume rose 2%. Johnson & Johnson shares also moved higher after the company reported gains in quarterly sales and profit.
Yahoo and Intel are set to report in the afternoon.
FedEx shares rose sharply after the shipping giant announced plans to buy back 32 million shares, bolstering its existing share repurchase program.
Tesla and Microsoft gained ground after analysts upgraded their ratings on the stocks. Wedbush upgraded Tesla to outperform from neutral, while Jefferies boosted Microsoft's rating to buy from hold.
Meanwhile, Facebook shares jumped after Evercore analysts said they believe the social media company's stock will rise to $60 U.S. and reiterated their overweight rating.
Though the broader market was higher, shares of Burberry fell nearly 6% in London after the fashion company announced its CEO -- Angela Ahrendts -- would be leaving for the top retail job at Apple
U.S. Senate leaders have said they have made "tremendous progress" toward an agreement to end the partial government shutdown and raise the debt limit, but investors are taking a cautious approach.
Even if the Senate gets a deal, it still needs to win support in the House of Representatives, which is far from certain. And there were reports Tuesday morning that the House may push a separate bill.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.72% from Monday’s 2.69%. Treasury prices and yields move in opposite directions.
Oil prices slid 31 cents to $102.10 U.S. a barrel.
Gold prices dipped $5.90 to $1,270.70 U.S. an ounce.
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