The Toronto stock market was little changed today with moves fairly evenly split between higher bank stocks and lower energy stocks as oil prices stepped back.
The S&P/TSX Composite Index was up 29.69 points on the day to end a rollercoaster week at 10,385.54, more than overcoming Monday's 454-point retreat and stretching its winning streak to four straight sessions. The index was up nearly 100 points on the week.
As the first half of 2009 draws to a close, investors are growing more nervous about whether the economy can bounce back later this year.
At its peak June 11, the rally had taken the TSX to the 10,714-mark, up 41% from the trough on March 6 and almost 20% year to date.
Today, the financial sector was the biggest gainer, with Scotiabank ahead $1.30 to $43.11.
The Toronto market's energy sector was down as EnCana Corp. lost 65 cents to $56.93.
Market heavyweight Potash Corp. was a drag on the TSX. It cut its earnings guidance after markets closed Thursday, citing lower-than-expected sales volumes as customers delay purchases and lower realized prices for phosphate fertilizers.
The Saskatoon-based company said it now expects to earn roughly 70 cents per diluted share for the quarter, down from an initial target of $1.10 to $1.50 per share.
The average analyst estimate according to Thomson Reuters was for earnings of 93 cents per share. Potash shares fell 85 cents to $107.20, while shares in fellow fertilizer producer Agrium Inc. lost $1.09 to $46.71.
The gold sector was another source of weakness, down as Goldcorp Inc. faded 81 cents to $41.53.
In other corporate news, Shaw Communications Inc. shares were ahead 24 cents to $19.79 after the company reported third-quarter profit of $132 million or 31 cents per share, up slightly from year-earlier net income of $128 million or 30 cents per share. Quarterly revenue rose 9% to $861 million.
Semiconductor company Mosaid Technologies Inc. reported Thursday an increase in fourth-quarter profits compared with a year ago as revenue grew six per cent. The semiconductor company said it earned $5.6 million compared with a profit of $5.4 million a year earlier. Its shares declined 45 cents to $14.80.
The Sobeys grocery chain gave a strong push to revenue growth in the latest quarter at Empire Co., although the diversified holding company's real-estate and investment activities proved to be a drag on profitability.
Empire's overall net income for the quarter fell to $63.6 million, down from $66.5 million in the fourth quarter of fiscal 2008 and its shares stepped back $1.17 to $45.15.
The Canadian dollar was ahead 0.18 cents to 86.66 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, nine ended the week in positive country, financials the big winners, advancing 2.1%, followed by health-care stocks, up 1.6%, while metals and mining were 1.5% shinier.
The four laggards were weighed down by gold stocks, off 1.6%, materials, down 0.7% and energy issues, sliding 0.6%.
The TSX Venture Exchange was up 8.54 points to 1,111.80 – off a handful of points on the week - while the Nasdaq Canada Index recovered 11.04 points to 690.11.
ON WALLSTREET
In New York, stocks fell and were poised for the first two-week decline since March after the highest American savings rate in 15 years spurred concern that consumer spending will slow and oil retreated. The dollar dropped after China’s central bank reiterated a call for a worldwide currency.
The Dow Jones Industrials average ended the day down 34.01 to 8,438.39 - about 135 points on the week. The S&P 500 index was off 1.37 points to 918.89, three points on the week. The Nasdaq gained back 8.68 points to 1,838.22, ahead about 10 points on the week.
While the stock market has rebounded since March on optimism the deterioration in the global economy will slow, U.S. business activity is probably contracting for a fourth consecutive quarter, according to economists’ estimates.
Energy companies in the S&P 500 declined 0.8% as a group, the most among 10 industries. Exxon slumped 1% to $69.15 U.S. Tesoro decreased 2.2% to $12.74 U.S. The dollar slumped 0.8% against the currencies of six trading partners as China sought to replace it.
Eli Lilly lost 0.9% to $35 U.S. King Pharmaceuticals Inc. dropped 1.1% to $9.72 U.S.. Pfizer Inc. slumped 1.5% to $15.10 U.S.
KB Home fell the most in the S&P 500, sliding 9.6% to $13.35 U.S.. The Los Angeles-based homebuilder that targets first-time buyers reported a second-quarter net loss that was 53% bigger than the average analyst estimate, according to Bloomberg data.
Micron Technology Inc. dropped 3.8% to $5.10. The biggest U.S. maker of computer-memory chips said its third-quarter net loss widened as slowing electronics demand and an industry glut kept prices below the cost of production.
UBS AG fell 6% to $12.19 U.S. The European bank with the biggest losses from the credit crisis raised about 3.8 billion Swiss francs ($3.5 billion U.S.) by selling shares and said it expects a second-quarter loss.
Palm Inc. surged 17% to $16.38 U.S. The maker of the new Pre phone reported a smaller fourth-quarter loss than analysts estimated after sales fell less than predicted.
Economically speaking, the U.S. Commerce Department reported that May personal income surged 1.4%, which was much higher than expectations.
Income was expected to have risen 0.3% after climbing a revised 0.7% in April, according to a survey of economists conducted by Briefing.com.
The government also reported that personal spending rose 0.3% in May, matching expectations, after a 0.1% decline in April.
But personal saving as a percentage of income rose to 6.9% in May from 5.6% in April. The rate was the highest level in more than 15 years.
Treasury prices advanced, lowering the yield on the benchmark 10-year note to 3.51% from 3.54%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.07 a barrel to $69.34 U.S.
Gold prices gained two dollars an ounce to $941 U.S.
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