The Toronto stock market was lower Wednesday, weighed down in part by the TSX financial sector even as traders took in positive earnings from National Bank
The S&P/TSX composite index dropped 54.95 points to greet noon at 13,264.92
The Canadian dollar ditched 0.46 cents at 93.45 cents U.S. early Wednesday
National Bank shares rose 91 cents to $91.81 after it posted $337 million in quarterly net income, adding up to a full-year profit of $1.554 billion.
Ex-items, the bank had $370 million of adjusted net income, or $2.09 per share, up 8% from $1.93 per share a year earlier, which met expectations. National Bank is also upping its quarterly cash dividend by 6% to 93 cents and also announced plans for a two-for-one stock split.
Financials weighed on the TSX for a second day as investors lower expectations ahead of earnings coming out this week from the rest of the big banks. Bank of Montreal shares fell 4.5% Monday even as earnings beat expectations.
Investors were disappointed with, among other things, weakness in its U.S. operations. BMO shares were down 29 cents to $69.96 Wednesday while Royal Bank dropped 56 cents to $698.
However, the financial sector has been a star performer on the TSX this year, up over 20% year to date, prior to the release of BMO's earnings on Monday.
The tech sector was also negative with CGI Group down $1.35 to $37.17.
Atlantic Power lost seven cents to $3.49.
Metal prices improved following the U.S. jobs data with March copper ahead six cents to $3.23 U.S. a pound. The base metals component was little changed but Teck Resources advanced 29 cents to $25.53.
The gold group gained ground while Goldcorp climbed 26 cents to $22.51.
In other corporate developments, Air Canada rose nine cents to $7.82 after an analyst at BMO increased the price target for the carrier's shares to $10 from $7.50. Air Canada's share price has skyrocketed during this 2013 from a 52-week low of $1.59.
On the economic beat, Statistics Canada reported this morning that this country’s merchandise imports declined 1.2% and exports decreased 0.3% in October. As a result, Canada's trade balance with the world went from a deficit of $303 million in September to a surplus of $75 million in October.
ON BAYSTREET
The TSX Venture Exchange gained 2.41 points to 917.70
All but four of the 14 TSX subgroups were lower midday, weighed by information technology, sliding 1.3%, metals and mining, down 1.1%, and health-care, off 0.8%.
The four gainers were led by global base metals and materials, each up 0.5%. while real-estate issues prospered 0.4%.
ON WALLSTREET
Stocks recovered from losses at the open Wednesday and moved higher in late morning trading following a better-than expected report about the housing market.
The Dow dipped 46.81 points into negative territory, at 15,867.80
The S&P 500 index dipped 3.37 points to 1,791.78. The NASDAQ fell 9.51 points to 4,027.69
In corporate news, J.C. Penney said Tuesday that same-store sales in November grew 10% from the same period last year. The stock, which has been the worst performer on the S&P 500 this year, is in the midst of a turnaround and has caught the attention of some major hedge funds.
But investors seemed unimpressed with the decent November sales. Shares of J.C. Penney were down 4% in early trading.
Another mover was Hewlett-Packard, which rose more than 4% after reports that the PC and printer maker plans to shed 1,100 jobs in its U.K. unit.
A report showed the economy added 215,000 private-sector jobs in November, according to payroll processor ADP -- well above the 160,000 gain that was expected.
The strong jobs numbers raised concerns about the Fed pulling back, or tapering, its $85-billion-U.S.-per-month bond-buying program.
The Census Bureau also said sales of new single family residential homes rose 25% in October compared to September, topping economists' expectations.
Looking ahead, the Fed will release its Beige Book, a summary of regional economic conditions, at 2 p.m. ET.
Prices for 10-year U.S. Treasuries lost strength, raising yields to 2.84% from Tuesday’s 2.78%. Treasury prices and yields move in opposite directions.
Oil prices hiked $1.00 to $97.04 U.S. a barrel.
Gold prices gained $5.50 to $1,226.30 U.S. an ounce.
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