The Toronto stock market finished Wednesday afternoon up slightly, even as a variety of concerns outweighed the positive effects of several bright quarterly earnings reports.
The S&P/TSX Composite Index ended the day ahead 21.03 points at 12,134.56.
A slew of better-than-expected quarterly reports out of Canada and the United States, along with an upbeat economic outlook from the Bank of Canada, have been tempered by uncertainty about banking regulations, concerns that interest rates could soon be headed higher and fears that Greece will be forced to default on its debt as its borrowing costs skyrocket to new highs.
Plus, investors had already priced in a strong first quarter for most companies, meaning the market isn’t impressed when expectations are met
Encana Corp. Canada’s largest natural gas producer, said Wednesday its first-quarter net profit soared to $1.48 billion U.S., three times higher than it was a year earlier, as the accounting impact of its hedging program more than offset lower market prices for natural gas. Shares in Encana lost 17 cents to $31.60.
And Canada’s biggest base metals miner, Teck Resources Ltd., earned $937 million in its latest quarter, up sharply from a year ago due to higher revenue and asset sales. The company also said it will make a final debt repayment on the $9.8-billion loan it took to acquire the assets of Fording Coal Trust.
Teck’s stock fell four cents to $41.67.
Among gold stocks, Barrick Gold Corp. shares gained 38 cents to $39.41.
The base metals sector lost ground as the May copper contract on the Nymex added 2.15 cents to $3.54 U.S. per pound.
And the financial sector fell after the International Monetary Fund recommended all G20 countries slap a tax on financial institutions to make them pay for their own bailouts. Federal Finance Minister Jim Flaherty said there is no way Canada will co-operate with attempts to impose a global tax on banks. Shares in Scotiabank regained six cents to $51.98.
In corporate news, Montreal-based Metro Inc. earned a better-than-expected $80.3 million in its second quarter. Shares in Metro gained a penny to $41.80.
Cequence Energy Ltd., a junior Calgary oil and gas company, has struck a friendly deal to buy privately owned Peloton Exploration Corp. for $36.6 million in shares and debt. Cequence shares gained nine cents or 3.7% to $2.53.
North American Palladium Ltd. announced plans to acquire the Vezza gold project in the Abitibi region of Quebec from Agnico-Eagle Mines Ltd. for $10 million in cash and shares. The palladium miner’s stock fell 29 cents or 5.6% to $4.93 after the company said it would increase a share offering by 2.4 million units to 17.4 million.
Agnico-Eagle’s shares climbed 94 cents to $60.19.
The Canadian dollar remained stronger than its American cousin, though being fairly flat on the day to $1.0007 U.S.
ON BAYSTREET
Seven of the 14 TSX subgroups ended the day positive. Real-estate led the winning groups, up 1.4%, while gold advanced 1.1% and materials scored a 0.6% gain.
Global base metals proved the worst off of the half-dozen losing groups, falling 1.2%, while health-care stocks were 0.6% sicker and metals and mining issues slid 0.5%. The industrials group was flat on the day.
The TSX Venture Exchange skidded 4.70 points to 1,647.50, while the Nasdaq Canada index stepped back 5.53 points to 792.33.
ON WALLSTREET
In New York, stocks turned lower in a choppy session Wednesday, as mixed profit reports from Apple and Yahoo weighed on the tech sector and investors remained wary following strong quarterly reports from Morgan Stanley and Wells Fargo.
The Dow Jones industrial average enjoyed narrow gains of 7.86 points to 11,124.92.
The S&P 500 index backtracked 1.23 points to 1,205.94. The Nasdaq composite index regained 4.30 points to 2,504.61.
Late Tuesday, iPod and Mac maker Apple posted a record quarter that blew past Wall Street's estimates. Apple shares rose 5.8%.
Yahoo also delivered earnings that beat expectations, but its sales came in below estimates. Shares fell 4.7% in afternoon trading.
On Wednesday, Morgan Stanley said it swung to a $1.8-billion U.S. profit in the first quarter Wednesday before the bell, as strong trading revenue boosted the Wall Street firm's latest results. Shares of Morgan were up about 4.1%.
Wells Fargo reported a $2.5-billion U.S. profit before the bell, beating Wall Street expectations. The company said that credit conditions have "turned the corner" from the weakness of the financial crisis. Still, Wells shares fell about 2.9%.
Overall, the finance sector was up 10.8% in afternoon trade.
In addition to banks, investors digested quarterly results from several Dow components. AT&T beat estimates on a boost from strong sales of Apple's iPhone, Boeing 's profit and revenue dropped amid fewer airplane deliveries; McDonalds' earnings rose above predictions as sales rose across all its markets, especially Europe and Asia; United Technologies also beat estimates.
Also, Chrysler announced that it earned its first operating profit since exiting bankruptcy on June 10, 2009. The profit follows nearly $4 billion U.S. of losses logged by the automaker during that time.
The results will continue after the markets close, with coffee chain Starbucks and other major names reporting results.
General Motors announced in the morning that it had made a final payment of $5.8 billion U.S. late Tuesday to the U.S. and Canadian governments, paying off the last of its $6.7 billion U.S. in loans.
Treasury prices jumped, lowering the yield on the 10-year note to 3.74% from 3.81% late Tuesday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gave back 16 cents to $83.69 U.S.
Gold prices gained nine dollars to $1,149 U.S. an ounce.
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