The Toronto stock market was lower Tuesday as energy stocks had a muted reaction to a sharp surge in oil prices while the financial sector failed to respond to solid earnings from Bank of Nova Scotia
The S&P/TSX Composite Index ended down on the day by 26.78 points at 13,802.88
The Canadian dollar gained 0.85 cents to 103.18 cents U.S.
The financial sector stepped back even as Scotiabank said second-quarter profits rose to $1.54 billion from $1.1 billion a year ago. The results were equal to $1.12 per share on an adjusted basis, four cents higher than analyst estimates. Revenue increased to $4.52 billion from $3.87 billion and its shares rose 38 cents to $59.36.
Elsewhere in the sector, Royal Bank lost 48 cents to $56.62.
The TSX energy sector rose as Cenovus Energy gained four cents to $35.80 and Suncor Energy shed 54 cents to $40.45.
Meanwhile, TransCanada Corp. has suspended shipments of crude oil along its Keystone pipeline while it repairs and cleans up a small leak at a Kansas pumping station. The latest spill comes just 2 ½ weeks after the Calgary-based company experienced a similar problem at a pumping station in North Dakota. TransCanada shares gained 39 cents to $43.39.
Other commodities were also higher with the July copper contract up two cents at $4.20 U.S. a pound and the base metals sector gained territory. Inmet Mining gained $2.66, or 4%, to $69.50 and Ivanhoe Mines declined 62 cents to $24.38.
The gold sector dropped as Goldcorp Inc. faded 59 cents to $48.46 and Barrick Gold Corp. slipped a nickel to $46.39.
The tech sector was weak in the wake of a report from Nokia which said its second-quarter and full year earnings will be worse than earlier expected because of tough competition, especially in the smartphone market.
The world’s largest mobile phone maker says its second-quarter result will be "substantially below" its previously expected range of euro6.1 to euro6.6 billion for the second quarter 2011.
BlackBerry-maker Research In Motion Ltd. fell $1.89, or 4.4%, to $41.35.
The Toronto stock market is ending May trading down about 100 points from the end of April amid concerns that the U.S. economy is faltering and increasing worries about the European debt crisis. That leaves the TSX up about 2.5% year to date.
In other corporate news, Wi-LAN Inc. said it will begin trading on the Nasdaq starting Wednesday under the ticker symbol WILN. The Ottawa-based company specializes in licensing rights to intellectual property and patents. Its shares were up nine cents to $7.96.
WesternZagros Resources Ltd. shares surged 24 cents or 34.3% to 94 cents after it said it has discovered oil in the Kurdistan region of Iraq.
On the economic front, Statistics Canada reported this morning that its Industrial Product Price Index jumped 0.5% in April over March, led by higher prices for petroleum and precious metals.
Meantime, its Raw Materials Price Index rose 6.8% as a result of a strong upward movement in crude oil prices.
ON BAYSTREET
The TSX Venture Exchange eased back 3.49 points to 2,094.47 while the Nasdaq Canada index demurred 0.60 points to 667.07
In Toronto, eight of the 14 subgroups were down on the day. Health-care issues suffered 1.1%, while utilities and materials stocks were 0.6% each to the bad.
Information technology led a crop of half a dozen gainers, up 0.4%, while telecoms and industrials improved 0.3% each.
ON WALLSTREET
In New York, the rally in U.S. stocks stalled Tuesday afternoon, as investors weighed a batch of weak U.S. economic data against hopes of a fresh bailout for Greece.
The Dow Jones industrial average shot ahead 128.21 points, or 1%, to end the session at 12,569.80. All but one of the Dow's components were in positive territory -- with Cisco, Pfizer and Chevron leading the advance.
The S&P 500 gained 14.10 points to 1,345.20. The Nasdaq Composite Index gathered 38.44 points to 2,835.30
May has been a rough month for the stock market, as investors wrestle with signs of a slower recovery. The Dow is down about 2.9% from the beginning of the month, and the S&P 500 is down 2.4%.
At the start of Tuesday’s session, stocks advanced more than 1% following gains in European markets. The rally was sparked by a Wall Street Journal article that reported Germany is shifting its stance to consider lending more money to Greece.
Previously, German officials had argued private investors in Greece should share some of the burden in any new bailout, but according to the Journal, Germany is now considering lending additional assistance -- even without private bondholders getting involved.
But after the strong start, stocks began to soften after U.S. data showed a decline in home prices, regional manufacturing activity and consumer confidence.
Shares of Nokia tumbled 14%, after Nokia issued a sales warning that the second quarter will be lower than previously expected. The cell phone maker, which has been losing market shares to Apple and Google also lowered its full-year outlook.
Shares of Apple rose 2% after the company said that CEO Steve Jobs, who is on medical leave, will introduce the iCloud service during the Worldwide Developers Conference keynote on June 6 in San Francisco.
Economically speaking, home prices recently fell to their lowest levels since the housing bubble burst, according to the closely watched S&P Case-Shiller Index. Prices tumbled 4.2% in the first quarter, sending home prices back to levels not seen since mid-2002.
The Chicago Purchasing Managers index fell more than expected to 56.6 in May, from 67.6 the previous month. Economists were expecting the figure to slip to 62.5.
The Conference Board's consumer sentiment index declined to 60.8 in May, from 65.4 in April. Economists were expecting consumer confidence to rise to 66.3.
The price of the benchmark 10-year U.S. Treasury gained ground, lowering the yield up to 3.05% from Friday’s 3.06%. Treasury prices and yields move in opposite directions
Oil for July delivery perked $2.03 to $102.62 U.S. a barrel.
Gold futures for August delivery slipped 50 cents to settle at $1,536.80 U.S. an ounce.
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