Equities in Canada’s biggest market were somewhat iffy at the open on Tuesday, as investors continued to focus on U.S. quarterly earnings.
The S&P/TSX composite index dipped 4.86 points to begin the session at 14,488.82
The Canadian dollar inched up 0.06 cents U.S. to 90.86 cents U.S.
Activist investor William Ackman has teamed up with Canadian drug maker Valeant Pharmaceuticals International to make a joint run at buying wrinkle-treatment maker Allergan Inc , according to security filings. Valeant responded by jumping $7.49, or 5.4%, to $146.25.
Teck Resources said it would cut about 600 jobs, or 5% of its global workforce, after a sharp fall in quarterly earnings and revenue. Teck stock recovered 27 cents, or 1.1%, to $24.28.
Rogers Communications reported a 13% drop in first-quarter profit on Monday, as a move to more customer-friendly pricing led to a slip in earnings at its major wireless phone arm. Rogers dumped $1.35, or 3.1%, to $42.93.
In the economic docket, Statistics Canada reported that wholesale sales rose for a second straight month in February, up 1.1% to $50.7 billion. Sales in all sub-sectors increased, led by motor vehicle and parts, without which the rise would have been 0.8%.
ON BAYSTREET
The TSX Venture Exchange eased 0.7 points to 996.51
The 14 Toronto subgroups were evenly divided between gainers and losers. Health-care stocks soared 1.9%, industrials strengthened 1.2%, while metals and mining issues were 0.2% more solid.
The seven laggards were weighed mostly by telecoms, off 1%, while financials and energy retreated 0.4% each.
ON WALLSTREET
U.S. equity markets all rose modestly in early trading as investors welcomed news from several big companies and news of mergers in the pharmaceutical industry.
The Dow Jones Industrial Average took on 47.04 points to open Tuesday at 16,496.29
The S&P 500 gained 5.84 points to 1,877.73, and the NASDAQ composite index acquired 25.03 to 4,146.58.
With earnings season in full swing, investors are looking for strong company results to drive markets higher.
Shares in Netflix soared over 7% after the company reported earnings late Tuesday that beat expectations and showed strong subscription growth. It also said it would increase its monthly fee for new customers in some countries later this quarter.
Motorcycle maker Harley-Davidson was also cruising away in morning trading. It was up over 6% after a strong earnings report this morning.
Outside of earnings, a mega pharmaceutical deal emerged late Monday. Shares in Botox maker Allergan surged 15% after activist investor Bill Ackman and Valeant Pharmaceutical said they were planning a joint bid to buy the company. Allergan had already gained 6% on Monday.
In other news Tuesday, Comcast shares bounced over 2% after the cable provider reported a 30% jump in profit for the first quarter. The CEO attributed the gains to the Sochi Olympics, which were broadcast via NBC.
Fast food giant McDonald's announced lower sales, especially in the U.S. as the company underperformed expectations. The stock was down in early trading.
Aerospace company Lockheed Martin also reported a year-over-year gain in quarterly income. Shares moved higher in morning trading.
Prices for 10-year U.S. Treasuries sagged, upping yields to 2.74% Monday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices stepped back $1.40 to $102.97 U.S. a barrel.
Gold prices were unchanged at $1,288.50 U.S. an ounce.
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