The Toronto stock market gave up early gains Tuesday morning as a pair of reports signaled a sharp retreat in American consumer confidence while the Canadian economy stalled again in November.
The S&P TSX Composite Index approached noon Tuesday off 50.48 points to 12,385.94
The Canadian dollar faded 0.34 cents to 99.48 cents U.S., back from the levels of near-parity with its American counterpart.
Imperial Oil Ltd. shares gained 21 cents to C$47.07 after the energy giant reported that fourth-quarter profit rose 26 per cent to $1 billion. Full-year earnings rose 53 per cent to $3.4 billion, the second-highest on record. Imperial also hiked its quarterly dividend one cent to 12 cents.
The base metals component rose as copper prices lost early gains and was unchanged at $3.83 U.S.
Still, copper has surged about 12% this month, partly on hopes that China is set to further relax lending standards to encourage growth. China is the biggest consumer of the metal, which is viewed as an economic bellwether as it is used in so many industries.
HudBay Minerals was up 18 cents to $11.81.
The gold sector was up slightly as Barrick Gold Corp. was up nine cents to $49.38.
Financials turned negative with Manulife Financial off two cents to $11.79.
Junior miner Verde Potash Plc says a preliminary economic assessment report concludes its planned potash project in Brazil will cost $654 million U.S. to build. The company said the project is estimated to initially produce up to 600,000 tonnes of the widely used fertilizer chemical a year. Verde shares fell $1.55 to $7.01.
Maple Group, the consortium of 13 financial institutions looking to take control of the company that owns the Toronto Stock Exchange, is extending its offer for about another month. The offer will now be good until Feb. 29. It had been set to expire Tuesday. TMX shares added four cents to $42.24.
On matters economic, the economy contracted in November for the first time since May as oil and gas extraction declined sharply, setting the stage for a sluggish performance in the fourth quarter.
Real gross domestic product fell 0.1% in the month, according to Statistics Canada, contrasting with market expectations of 0.2% growth. The economy grew 2% compared with a year earlier.
GDP had stalled in October following four straight months of expansion.
Elsewhere, the nation’s number-crunchers told us that December’s Industrial Product Price Index declined 0.7%, while the Raw Materials Price Index slid 2.4%, both the result of lower prices for petroleum and metals.
ON BAYSTREET
The TSX Venture Exchange gained 1.59 points to 1,625.10, while the Nasdaq Canada index faded 3.46 points to 409.61.
Of the 14 Toronto subgroups, 10 were down by lunch hour. Global base metals slid 0.9%, while materials and gold stocks each lost 0.8%.
The four gaining groups were led by health-care and industrials, each climbing 0.6%, while consumer staples added 0.4%.
ON WALLSTREET
In New York, stocks traded in a narrow range Tuesday, after worse-than-expected U.S. housing and manufacturing data tempered the modest enthusiasm over Europe's progress on a new fiscal pact.
The Dow Jones Industrials subsided 67.01 points by midday to 12,586.70
The S&P 500 dropped off 4.60 points to 1,308.41, while the tech-rich Nasdaq subtracted 8.78 points to 2,803.16
Investors parsed through a mixed bag of earnings from Exxon Mobil, UPS, Pfizer and Mattel. But weak reads on Midwest manufacturing and home prices were the main drivers pushing the market down from an initial boost.
Even with choppy trading, stocks are on track for one of the best Januarys in years. It could be the best first month for the S&P and Dow since 1997 and since 2001 for the Nasdaq.
RadioShack shares plunged 29%, after the electronics retailer warned late Monday that its fourth-quarter earnings will fall far short of expectations.
Exxon Mobil shares dropped 0.5%, after the oil giant reported its quarterly earnings climbed to $9.4 billion U.S. on revenue of $121.6 billion U.S.
Mattel shares rose 6%, after the toymaker beat Wall Street estimates on quarterly earnings and raised its annual dividend 35%. Worldwide sales of Barbie dolls, Hot Wheels and American Girl toys posted solid gains, although revenue overall fell short of analysts' expectations.
Mattel's top competitor, Hasbro, will release its corporate results Monday.
Pfizer was hurt in the fourth quarter by the loss of its patent for Lipitor, a drug for treating high cholesterol. But the drug maker still beat Wall Street expectations on earnings and revenue, sending its shares up 0.3%.
UPS shares rose 0.3%, after the courier beat forecasts on earnings but fell short on revenue. In a statement, Kurt Kuehn, UPS's chief financial officer, said the company expects 2012 to bring "mixed economic growth around the world."
After the closing bell on Tuesday, online retailer Amazon will report its results
Stocks got an early boost after European Union leaders agreed Monday to strengthen a financial firewall and most members of the 27-nation group will sign a new fiscal compact. But the first summit of the year ended without new solutions for the debt crisis in Greece.
Without a deal with private-sector creditors, the country jeopardizes its access to bailout funds, and might not be able to make a €14-billion debt payment due March 20.
On the economic beat, the Case-Shiller 20-city home price index showed home prices dropped 1.3% month-over-month in November.
Later in the day, the January edition of the Conference Board's Consumer Confidence Index is set for release, as is the Congressional Budget Office's 10-year budget and economic outlook.
The Consumer Confidence Index is expected to hit 67 in January, up from 64.5 in the month prior, according to a survey of analysts by Briefing.com.
Treasury prices for the 10-year note were up, lowering yields to 1.81% from Monday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil for February delivery gained three cents to $98.81 U.S. a barrel.
Gold futures for April delivery rose $11.90 to $1,746.30 U.S. an ounce.
Related Stories
