Toronto stocks continued lower Tuesday afternoon pressured by a drop in commodity prices, losses were limited however by positive moves in the banking sector after Bank of Nova Scotia reported a better-than-expected rise in Q4 earnings.
The Toronto Stock Exchange's S&P/TSX composite index was down 44.41 points, or 0.30 percent, at 14,970.95.
Bank of Nova Scotia, Canada's third-biggest lender, reported a better-than-expected rise in fourth-quarter earnings, driven by a strong performance from its domestic and international banking businesses. Scotiabank said on Tuesday its earnings per share increased to $1.58 from $1.46 in the same period the previous year. Analysts had on average forecast earnings of $1.51. Its shares hit a new 52 week high.
Gold prices fell on Tuesday due to expectations of rising U.S. interest rates, a stronger dollar and improving sentiment for global economic growth, which mean investors are likely to favour risk assets such as equities. Spot gold was down 0.6 percent at $1,186.33 an ounce.
In other news -- Carmanah Technologies Corporation announced that it will acquire certain marine aids owned by Cybernetica AS of Estonia. The purchase price will be EUR1.35 million and will be paid by way of EUR1 million in cash on closing and EUR0.35 million on the first anniversary of closing. Carmanah Technologies Corporation shares are unchanged at $3.70.
The Canadian dollar weakened, down 0.10 cents at 74.51 cents U.S.
ON BAYSTREET
The TSX Venture Exchange was down 3.30 points to 733.51.
Nine of the TSX subgroups were higher this afternoon, with health-care up 2.40 percent, financials ahead .65 percent, and consumer staple issues up 0.59 percent.
On the downside -- Metals were off 2.84 percent followed by a 2.61 percent fall in energy stocks and a 0.34 percent decline in utility issues.
ON WALLSTREET
U.S. stocks rose on Tuesday, led by health care and real estate, despite falling oil prices ahead of a key OPEC meeting. Investors also took in a number of key economic reports.
The Dow traded up 0.15 percent to 19,126.46 while the NASDAQ climbed 0.62 percent to 5,401.98. The S&P also rose, gaining 0.32 percent to 2,208.67.
In economic news -- The U.S. economy grew at an annual 3.2% pace in the third quarter, according to the second estimate of growth from the Bureau of Economic Analysis. The initial estimate showed an increase of 2.9%, the best quarterly gain in two years. Economists had anticipated the measure to increase 3%. Consumer spending rose 2.8% over the third quarter, while exports increased 10.1%.
Consumer confidence in the U.S. climbed at a faster-than-expected pace in November. The measure rose to 107.1 from 100.8 in October, above consensus of 101.1.
The Case-Shiller 20-city index rose 5.1% in September as national index hit all-time high. A November number for consumer confidence is expected at 10 a.m. Eastern, with economists anticipating a reading of 102.5.
Oil prices slumped on Tuesday as doubts rose over whether major oil producers can agree to a production cut. Reports emerged Tuesday morning that Iran's oil minister, Bijan Namdar Zanganeh, had ruled out cuts from the world's sixth-largest producer. Oil traded down 3.78 percent to $45.30.
On the corporate front -- Tiffany (TIF) added more than 2% after posting an increase in third-quarter profit that came in above estimates. The jewelry retailer earned 76 cents a share, 6 cents higher than a year earlier and above consensus of 67 cents. Same-store sales fell 2%, better than an estimated decline of 4.1%, as sales in Japan skyrocketed. Same-store sales in Japan unexpectedly surged 20%, far better than an estimated 4.3% decline.
UnitedHealth (UNH) increased 3% after guiding for an upbeat 2017. The health insurer said it anticipates adjusted earnings of $9.30 to $9.60 a share over fiscal 2017 on revenue of $197 billion to $199 billion. Analysts anticipated adjusted earnings of $7.51.
The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was roughly flat near 2.311 percent, while the yield on the 30-year Treasury bond was slightly lower at 2.962 percent.
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