The Toronto stock market stayed positive in afternoon trading today as Wall Street struggled with direction amid a flurry of bad economic news and mixed earnings.
Toronto's S&P/TSX composite vaulted 133.82 by the closing bell Thursday to 9,412.97
Statistics Canada said retail sales edged up 0.2% in February to $33.7 billion, driven by higher prices rather than sales volumes.
Investors were also focused on comments from the Bank of Canada which said in its April monetary report that the recession is much more severe and will last longer than it previously thought.
However, the shift between optimism and pessimism on the markets appears to be leaving some investors sitting on the sidelines rather than turning on a dime every time a new piece of data emerges
In earnings, Suncor Energy Inc. reported a first-quarter loss of $189 million on comparatively low oil prices and various accounting and foreign exchange impacts. Shares in the company rose 86 cents to $30.33.
Celestica Inc. shares rose 13% to $6.42 after the contract manufacturer reported first-quarter earnings of $19.2 million U.S., down 36% from a year earlier, as revenue fell 20%.
Weaker demand for fertilizer and lower prices pushed Potash Corp. profits to $308.3 million U.S., down from a year-earlier profit of $566 million, while shares dropped $2.91 to $97.49 each.
Grocery store operator Metro Inc. is raising its dividend by 10% as it posted net earnings of $76.3 million, an increase of 41% over the same time last year. Company shares were down a dime to $37.55.
The Canadian dollar was strengthened more than a cent at 81.63 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, 11 were positive, led by gold, up 2.4%, energy stocks, ahead 2.1% and industrials, moving up 1.8%.
The two lagging groups were health-care stocks, down 1.1% and consumer discretionaries, off 0.2%.
The TSX Venture Exchange picked up 8.69 points to 985.24 while the Nasdaq Canada Index improved 8.69 to 644.84
ON WALLSTREET
The Dow Jones Industrials average recovered 70.49 points to 7,957.06.
The S&P 500 index advanced 8.37 points to 851.92, while the Nasdaq Composite Index moved 6.09 higher to 1,652.21.
Stocks are down for the week as investors have retreated after a six-week advance that propelled the S&P 500 nearly 29%. Stocks zigzagged Thursday as investors sorted through the profit reports and economic news.
After the close, Microsoft reported lower-than-expected quarterly sales on earnings that met estimates. Biotech Amgen also reported weaker-than-expected quarterly sales and earnings.
Amazon.com reported higher quarterly sales and earnings that topped estimates. Dow stock American Express reported weaker earnings that topped estimates.
Among the companies reporting results Thursday, regional bank Fifth Third Bancorp reported a narrower-than-expected quarterly loss. Shares gained 3% in active Nasdaq trading.
PNC reported higher quarterly profit due partly to its purchase of National City. Shares were little changed.
eBay reported lower quarterly sales and earnings that topped forecasts Wednesday, sending shares 13% higher Thursday.
Apple reported higher quarterly sales and earnings that topped estimates late Wednesday, sending shares 3% higher Thursday.
On the downside, UPS reported earnings and revenue that slumped versus a year ago due to the recession. Shares missed analysts' estimates. The stock fell 2.8%.
General Motors said in the afternoon that it plans to temporarily shut down 13 of 20 North American plants this summer in order to reduce its inventory. The company has been hit hard by the recession and slowdown in auto demand and has until June 1 to cut its debt and labor costs or face Chapter 11 bankruptcy protection. Shares fell 5%.
Chrysler is reportedly set to enter Chapter 11 as soon as next week, The New York Times reported Thursday. The Treasury Department is overseeing the process, which will reportedly protect union members' pensions and retiree health care benefits.
Italian carmaker Fiat will complete its acquisition of a 20% stake in the company while it is under bankruptcy protection.
On the economic front, March existing home sales fell to a 4.57-million unit annual rate from a 4.71-million rate in February, the National Association of Realtors said. Economists surveyed by Briefing.com thought sales would fall to a 4.65-million unit annual rate.
The number of Americans filing new claims for unemployment rose last week to 640,000 from a revised 613,000 the previous week, topping economists' estimates.
Treasury prices slipped, raising the yield on the benchmark 10-year note to 2.95% from 2.94% Wednesday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose 48 cents to $49.33 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $14 to $906.50 U.S. an ounce
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