The Toronto stock market struggled into positive territory Tuesday 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 finished Tuesday ahead, albeit a mere 15.73 points, to 12,452.15
The Canadian dollar faded 0.08 cents to 99.73 cents U.S., within sight of parity with its American counterpart.
Imperial Oil Ltd. shares gained 87 cents to $47.73 after the energy giant reported that fourth-quarter profit rose 26% to $1 billion. Full-year earnings rose 53% to $3.4 billion, the second-highest on record. Imperial also hiked its quarterly dividend one cent to 12 cents.
Energy sector rival Suncor shares hiked eight cents to $34.42
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 11 cents to $11.74.
The gold sector was up slightly as Barrick Gold Corp. was up 16 cents to $49.45. However, rival Goldcorp shed 22 cents to $48.56, while Kinross Gold sliced off six cents to $11.35
Financials turned negative with Manulife Financial off six cents to $11.75, while shares in Canada’s largest bank, Royal Bank of Canada, picked up nine cents to $52.52. Shares in the Bank of Nova Scotia dumped 53 cents, however, to $51.43, by the close.
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 $1.76, or 20.6%, to $6.80.
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 58 cents to $42.78.
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 8.34 points to 1,631.85, while the Nasdaq Canada index faded 1.19 points to 411.88.
The 14 Toronto subgroups were evenly divided between gainers and losers. Consumer staples leaped 2%, while industrials marched ahead 0.7%, and real-estate stocks advanced 0.5%.
The seven laggards were weighed down mostly by global base metals, off 0.2%, while telecoms and financials each stepped back 0.1%.
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 20.81 points to end the day and the month at 12,632.90
The S&P 500 dropped 0.62 points to 1,312.39, while the tech-rich Nasdaq recovered 1.90 points to 2,813.84
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 of the year 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 2%, 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 5%, 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. The drug maker beat Wall Street expectations on earnings and revenue, but its shares slide 1.3%
UPS shares dropped 1.3%, even though 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.
Moreover, U.S. consumer confidence dropped in January. A private research group, the Conference Board, says its monthly survey of consumer sentiment showed people increasingly think jobs are more difficult to find.
The group's closely watched index fell from 65 in December to 61 in the first month of the new year, well below the 90 level signaling a healthy economy. A survey of analysts by Briefing.com pegged the index as reaching 67 this month.
Treasury prices for the 10-year note were up, lowering yields to 1.80% from Monday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil for February delivery capsized 30 cents to $98.48 U.S. a barrel.
Gold futures for April delivery rose $5.30 to $1,739.50 U.S. an ounce.
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