The Toronto stock market gave up early gains Tuesday amid hopes that Greece will be able to get its next installment of funds to avoid default.
Even so, the S&P/TSX Composite finished the session up 37.84 points, to 12,209.88
The Canadian dollar shed 0.25 cents to 100.74 cents U.S.
In the gold sector, Goldcorp Inc. climbed $2.54, or 5.1%, to $52.57, while Barrick Gold Corp. was ahead 72 cents to $53.60.
The financials sector gained with Royal Bank up 46 cents to $47.06 while National Bank was ahead 43 cents to $69.17.
The industrials sector also strengthened with WestJet shares up 17 cents to $13.77.
Talks between Air Canada and its flight attendants union broke off late Monday without an agreement. But an airline spokesman says negotiations will resume in hopes of avoiding a strike just after midnight tonight.
The carrier’s shares were ahead 11 cents to $1.70
Shares in Bombardier Inc. were off two cents at $4.22 after the transport giant said it plans to reduce production of its regional jet aircraft starting in January, but will not slash jobs as part of the move. The world’s third-largest aircraft manufacturer announced the decision in an effort to sync CRJ aircraft manufacturing with the market demand.
Among energy plays, Suncor Energy slid 52 cents to $28.88 while Imperial Oil was up 45 cents to $37.79.
The base metals sector moved down as the December copper contract on the Nymex was unchanged at $3.79 U.S. Teck Resources fell $1.54 to $36.11 while Inmet Mining gave up a dime to $59.05.
Market heavyweight Research In Motion Ltd. was a major decliner, down 85 cents, or 3.6%, to $22.60
On matters economic, figures released by Statistics Canada revealed this morning that wholesale sales moved up 0.8% in July to $48.2 billion, after being static in June.
The agency also said six of its 10 leading indicators continued to expand in August, the same number as in July. The agency says the weakness was concentrated in the housing index and the stock market, both of which fell more than the month before.
ON BAYSTREET
The TSX Venture Exchange fell back 9.97 to 1,727.87, while the Nasdaq Canada index was down 7.93 points to 470.65
In all, eight of the 14 Toronto subgroups remained in positive territory, with gold leading the way, up 3.7%, materials gaining 1.3%, and consumer staples picking up 1.3%.
The half-dozen laggards were weighed by metals and mining, down 3.9%, global base metals, sliding 3.1%, and information technology, off 1.2%.
ON WALLSTREET
In New York, stocks turned mixed Tuesday afternoon as investors took a cautious stance amid the uncertainty surrounding Greece's debt issues and ahead of the Fed's interest rate decision.
The Dow Jones Industrials closed ahead but 7.65 points to 11,408.70, with 25 of the blue chip index's 30 components moving higher, led by Travelers, American Express and Home Depot
The S&P 500 moved down two points to 1,202.09, while the Nasdaq lost 22.59 points to 2,590.24.
All three indexes are still in the red for the year, with the Dow off 1%, the Nasdaq down nearly 2% and the S&P 500 off almost 4%.
Tech companies Adobe Systems and Oracle report quarterly results after the bell.
Packaged food company ConAgra Foods withdrew its bid for cereal maker Ralcorp Holdings and reported a 40% drop in quarterly earnings. Shares of ConAgra fell 0.9%, while shares of Ralcorp moved up 2.0%.
Casual dining chain Kona Grill's shares spiked 25% by late morning, after the company hiked its third-quarter forecast.
Apple shares rose 0.9%, after closing a 52-week high Monday. A JPMorgan analyst predicted a more significant upgrade of the next iPhone.
Shares of Carnival Cruise Lines jumped 6.1% after the company reported earning that easily topped forecasts, even as it reeled in its outlook.
Analysts and traders said Tuesday's change of direction signals ongoing wariness and skepticism over the market's direction. And the three sectors that were faring the best -- utilities, telecommunications, and healthcare -- are typically considered the least risky stocks.
Part of Tuesday's relief stemmed from signs that European leaders were more likely to take positive action on Greece's debt crisis and forestall a default. Investors breathed a sigh of relief as the island nation made a coupon payment on its sovereign debt.
Greece's debt crisis remains the market's guiding force, with default concerns and bailout hopes keeping investors on their toes.
The Greek finance ministry said talks on Monday with officials from the European Commission, the International Monetary Fund and the European Central Bank were "productive and substantive."
Adding to euro-zone worries, Standard & Poor's Ratings Services cut Italy's sovereign credit rating late Monday. The credit ratings agency said the nation's weakening economic growth and political uncertainty have dented its financial stability. S&P now rates Italy's credit at A, down from A+, and kept its outlook on the country as negative.
Economically speaking, the Federal Reserve begins its two-day policy setting meeting, with a decision expected Wednesday afternoon.
The Federal Open Market Committee has expanded the length of its meeting to two days from one -- a move that investors have taken as a sign that the Fed will announce new actions to spur the economy.
In addition to watching Greece, investors are waiting for the FOMC announcement tomorrow, which will likely mean some stimulus. Experts are calling it Operation Twist.
In another dour read for the struggling housing market, housing starts in August came in at a seasonally adjusted annual rate of 571,000 -- lower than the 590,000 economists were expecting.
Meanwhile, permits came in at a seasonally adjusted annual rate of 620,000, better than the 585,000 economists were expecting.
The price on the benchmark 10-year U.S. Treasury fell a bit, pushing the yield up to 1.95% from Monday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil for October delivery grew $1.06 to $86.76 U.S. a barrel.
Gold futures for December delivery added $23.20 to $1,802.10 U.S. an ounce
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