The Toronto stock market recovered some lost strength mid-afternoon Wednesday, even while commodity prices backed off as another raft of economic data failed to reassure investors about the state of the U.S. economy.
The S&P/TSX Composite Index ended a roller-coaster of a day ahead 63.71 points at 12,816.03
The Canadian dollar fell back 0.13 cents to 103.89 cents U.S.
Economic worries had pushed the TSX down 5.5% over the last six sessions.
Demand concerns put pressure on oil prices for a fourth day. The energy sector declined as Suncor Energy declined 59 cents to $34.69 while Canadian Natural Resources shed 42 cents to $36.69.
The base metals sector was down as metal prices also weakened, with September copper dipping seven cents to $4.33 U.S. a pound. Teck Resources gained 92 cents to $45.85 while Lundin Mining fell 22 cents to $6.71.
However, investors looking for safe havens continued to push gold prices further into record territory. The gold sector rose as Barrick Gold Corp. gained 59 cents to $47.24 and Goldcorp Inc. climbed 47 cents to $46.92.
Iamgold Corp. shares were up 38 cents to $20.18 as it said a 36-hour work stoppage by 1,100 workers has ended at its Suriname Rosebel gold mine.
Market heavyweight Research In Motion was also a source of strength. Its shares were up $1.17 at $24.40 after the company said it was unveiling five new BlackBerrys with touchscreens as it hopes to revive the line’s dwindling appeal in the face of competition from the iPhone and Android smartphones. The new phones had been expected earlier this year, but were delayed.
In earnings news, fertilizer, chemicals and farm inputs retailer Agrium Inc. said its second-quarter results rose to $718 million U.S., or $4.54 per share, up from $518 million, or $3.28 per share, posted a year earlier. Agrium outperformed its own raised expectations of between $4.10 and $4.40 U.S. per share. Quarterly sales increased 40% to $6.2 billion from $4.43 billion U.S. and its shares ran up $1.96 to $83.72.
Silvercorp Metals Inc. shares gained 20 cents to $9.98 as it reported that net profits jumped to $25.6 million U.S., or 15 cents a share, for the three months ended June 30. The Vancouver-based silver company with key operations in China benefited from record production and a rising silver price.
The TMX Group Inc. the operator of Canada’s major stock exchanges, announced Wednesday that it has acquired Atrium Network, a provider of capital markets data in Europe and North America.
Meanwhile, the Maple Group, a consortium of financial institutions and pension funds making a bid to acquire the TMX Group, has extended its $3.8-billion offer until Sept. 30. TMX Group shares were down two cents at $43.12.
ON BAYSTREET
The TSX Venture Exchange declined 13.13 points to 1,965.72 while the Nasdaq Canada index advanced 8.68 points to 523.46
In Toronto, nine of the 14 subgroups changed course and gained ground by Wednesday’s closing bell. Information technology got off the fence on which it sat during lunch hour and strengthened 1.4%, while materials and financials pumped up 1% each.
The five laggards were weighed mostly by utilities, down 1%, while real-estate stocks waned 0.9% and energy staggered 0.8%.
ON WALLSTREET
In New York, stocks churned around the break-even mark, after being sharply lower for much of the session Wednesday, as economic fears continued to push investors into safe havens such as bonds and gold.
The Dow Jones Industrials ended an eight-session losing streak, picking up 29.82 points to 11,896.40
The S&P 500 regained 6.29 points to 1,260.34. The Nasdaq Composite Index progressed 23.83 points to 2,693.07
Coca-Cola and Intel were the biggest gainers on the Dow, with Chevron leading the selling on the blue-chip index.
A late-morning selloff was fueled in part by a technical breakdown in the market. Once the S&P 500 passed through the crucial 1,250 mark, it triggered a broader sell-off in the Dow and Nasdaq.
But by midday the selling lost momentum, perhaps in part to some upbeat comments from Fed governors Donald Kohn, Vincent Reinhart and Brian Madigan, who told the Wall Street Journal that the Fed may consider another round of stimulus.
Time Warner beat earnings expectations. Shares fell 2%.Time Warner reported net income of $638 million U.S., or 59 cents per share, and revenue of $7 billion U.S. The media company was expected to report a profit of 56 cents per share and revenue of $6.8 billion U.S.
Dunkin' Brands reported its first earnings since going public last week. The parent of the Dunkin' Donuts chain reported that global sales jumped 7% in the second quarter, compared to the year-earlier quarter, while same-store sales in the United States edged up about 3%.
But the growth in sales failed to lift profits. Net income was practically unchanged at $17.2 million U.S. for the quarter. The company's stock slid about 4%.
Shares of Open Table dropped 6% after the online provider of restaurant reservations disappointed investors by missing sales estimates.
MasterCard shares jumped 13% after the company posted a 33% increase in quarterly profits well ahead of analysts' expectations
Economically speaking, the Institute for Supply Management's service sector index fell to a reading of 52.7 -- worse than the 53.7 reading that economists had hoped for, but still indicating expansion in the sector. In addition, the Commerce Department said June factory orders fell 0.8%, slightly better than the 1% decline expected by economists.
What’s more, investors are focused on the job market with the all-important July jobs report coming Friday.
Ahead of that report, two other reports on Wednesday will give investors something to chew on.
The number of planned job cuts surged to a 16-month high in July -- rising 60% in July to 66,414 from June's 41,432, according to outplacement consulting firm Challenger, Gray & Christmas.
The ADP private employment report presented a more positive picture of the job market. The payroll processing firm said the private sector gained 114,000 in July, beating expectations.
Economists had expected the private sector to have hired 100,000 fresh workers in July.
All of that comes ahead of Friday's report, which is expected to show that the U.S. economy created 75,000 jobs in July, according to a consensus of 16 economists surveyed by CNNMoney.com.
Counting only the private sector, the forecast is for a gain of 99,000 jobs.
In June, the economy added a paltry 18,000 jobs. The unemployment rate is expected to hold steady at 9.2%.
Prices on the 10-year Treasury note moved higher, thus lowering yields to 2.60% from Tuesday’s 2.61%. Prices and yields move in opposite directions.
Oil for September delivery dropped $1.88 to $91.82 U.S. a barrel
Gold prices, meanwhile, surged to a fresh intraday record high of $1,675.90 U.S. an ounce, backing off to $1,672.50 U.S.
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