Canadian markets experienced a slight rebound Tuesday as commodity prices regained some ground and investors awaited North American economic data, only a day after a U.S. congressional committee admitted there would be no deal on deficit reduction.
The S&P TSX Composite Index picked up 34.35 points to 11,819.07, after Monday’s 100-point-plus setback.
The Canadian dollar was ahead 0.24 cents to 96.45 U.S. cents.
In Canadian corporate news, baked goods and grocery giant George Weston Limited reports third-quarter net earnings attributable to common shareholders of $264 million or $1.94 per share, compared with $176 million or $1.26 per share in the same 2010 period. Revenue for the three months ended Oct. 8 was $10.06 billion, up from $9.8 billion in the prior-year period.
Homburg Invest Inc. saw its loss balloon to $70 million in the third quarter, or $1.95 per share, as the troubled Halifax-based investment company's expenses soared faster than its revenue grew. The company, which has been in a dispute with founding shareholder Richard Homburg, is operating under court-protection from its creditors.
Economically speaking, Statistics Canada reported this morning that retail sales improved 1.0% to $38.2 billion in September, reflecting growth at most store types.
This marks the fifth increase in six months and was the largest advance since November 2010.
In all, nine of 11 subsectors advanced, the most notable being car and parts dealers, who enjoyed a 2.8% hike.
ON BAYSTREET
The TSX Venture Exchange added 8.54 points to 1,563.56, while the Nasdaq Canada index inched up 0.51 points to 390.55.
Of the 14 Toronto subgroups, eight were lower to begin the session. Consumer staples fell 0.7%, while industrials gave back 0.6%, and information technology docked 0.4%.
The half-dozen gainers were led by gold, up 1.9%, materials, ascending 1.4%, and metals and mining, taking on 0.8%.
ON WALLSTREET
Stocks dipped into the red at Tuesday's open, extending the previous day's losses, after a government report showed that the economy grew at a slower pace in the third quarter than first thought.
Soon after the opening bell, the Dow Jones Industrials ducked back 10.14 points to 11,537.20, after a tumble Monday of nearly 250 points
The S&P 500 poked ahead 0.69 points, to 1,193.67, while the Nasdaq Composite gained 3.97 points to 2,527.11
Shares of Netflix slumped after the video-streaming subscription service announced it will sell $400 million U.S. in common stock and convertible notes.
Fusion-io, which first debuted on the New York Stock Exchange in June, said it will price its follow-on public offering of 8.84 million in common stock at $33 U.S. per share. Shares of the company fell.
Hewlett-Packard posted quarterly earnings and sales late Monday that fell from last year's results. Shares of the computer manufacturer fell Tuesday.
Investors were disappointed by a weaker reading of Q3 economic growth.
Meanwhile, investors continued to digest developments after the debt panel's failure to reach a budget deficit deal.
There was some relief after ratings agencies reaffirmed the U.S. credit rating, but the collapse of budget talks could have longer-term ramifications, said some experts.
Congress' so-called "super-committee", which had been given extra powers to tackle the country's seemingly intractable debt problems, admitted Monday that it could not agree on $1.2 trillion U.S. in budget reductions.
Economically speaking, the American economy grew at a 2% annual rate in the third quarter -- a half-percentage point slower than originally reported, according to the government's second estimate of third-quarter GDP growth released Tuesday.
Analysts surveyed by Briefing.com expected the estimate would remain unchanged -- an annualized increase of 2.5%, following a 1.3% increase in the second quarter.
On Tuesday afternoon, the Federal Reserve will release the minutes of its most recent policy meeting.
The price on the benchmark 10-year U.S. Treasury rose slightly, pushing the yield down to 1.95% from 1.96% late Monday. Treasury prices and yields move in opposite directions.
Oil for January delivery gained 73 cents to $97.65 U.S. a barrel.
Gold futures for December delivery jumped $15 to $1,693.60 U.S. an ounce.
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