Stocks licked their wounds Thursday and many found their way clear to surpassing Wednesday’s levels.
The S&P TSX Composite Index recovered from a rough patch to close the day ahead 47.01 points to 8,784.90
The financial sector was down, with Royal Bank off 61 cents to $29.74.
Shares in Sunlife Financial Inc. declined 73 cents to $22.27 after it said quarterly earnings slid to $129 million, down from year-earlier profits of $555 million. Quarterly revenue came in at $4.7 billion, down from $5.4 billion reported during the same period in 2007.
Full-year earnings shrank to $785 million from 2007 profits of $2.2 billion.
Manulife Financial Corp. lost $1.87 billion in the fourth quarter - even worse than the $1.5-billion loss estimated in early December. The big life insurer said Thursday its full-year earnings dropped to $517 million, down 88% from $4.3 billion in 2007 and its shares moved $1.15 lower to $18.21.
Canaccord Capital Inc. shares fell 18 cents to $4.12 as the company turned in a $62.4-million net loss in its fiscal third quarter. Revenue was $87.2 million, down 52.4% from the same quarter a year ago.
And shares in insurer Great-West Lifeco Inc. were down 54 cents to $18.01 after the company posted a $907-million quarterly loss as it booked a $1.35-billion charge on its Putnam subsidiary in the U.S. Adjusted net income came in at $525 million, up 6% from a year ago.
The TSX energy sector lost, as shares in Nexen Inc.were down 42 cents to $17.02 after the company recorded a quarterly loss of $181 million, reversing year-earlier profits of $194 million.
Nexen said quarterly results were hurt by approximately $318 million in impairment charges related to its properties in the North Sea and the Gulf of Mexico.
EnCana Corp. reported that fourth-quarter earnings slipped to US$1.07 billion from $1.08 billion recorded a year ago. Earnings per share remained flat at $1.43.
Quarterly cash flow fell to $1.3 billion from year-earlier levels of $1.9 billion and its shares declined 51 cents to $52.61.
The telecom sector was a bright spot, with Rogers Communications ahead $1.03 to $34.88 and Telus Corp. advanced $1.14 to $34.64.
The base metals sector pulled ahead, with 1st Quantum Minerals up 1.08 to $28.61 and Ivanhoe Mines shot up 53 cents to $5.16 after surging 19% on Wednesday.
On the retail front, shares in Gildan Activewear Inc. shares plunged $2.83 or 22.5% to $9.73 after it reported it earned $4.3 million U.S. in its most recent quarter as sales sagged 26.5% from a year earlier to $184 million U.S.
Canadian Tire said its profit in the fourth quarter fell nearly 23% to $101.2 million compared with the a year before. Gross operating revenue rose to $2.59 billion from $2.5 billion and its shares gained $2.33 to $41.03.
Drug store operator Shoppers Drug Mart is reporting a fourth-quarter profit of $173 million, up 14.4% from a year-earlier. Revenue showed a strong increase, up 15.1% to $2.5 billion, a trend it expects to continue through 2009 and its shares advanced $2.20 to $43.75.
And Yellow Pages Income Fund units rose 41 cents to $5.63 as the company said that fourth-quarter profit was down to $100 million from $157 million a year ago on higher income tax provisions and restructuring charges. Revenues rose to $425.6 million from $412.6 million while full-year profit came in at $509.2 million compared to $527.7 million in 2007.
The Canadian dollar was down 0.22 cents to 80.30 cents U.S.
BAYSTREET
Gainers ruled the roost among the 13 subgroups on the TSX. Telecoms led the 10 groups that picked up ground, ahead 2.5%, while metals and mining plowed ahead 1.2% and information technology, up 1.0%.
Financials ended the day off 1.1%, real-estate stocks were down 1.0% and energy stocks trailed 0.6%.
The TSX Venture Exchange tacked on another 4.61 points to 915.87 while the NASDAQ Canada index advanced 12.41 points, to 507.94
ON WALLSTREET
The Dow Jones industrials index spent much of Thursday plumbing three-month lows, but recovered throughout the afternoon, very nearly to achieve Wednesday’s levels, losing only 6.77 to 7,932.76. The Standard & Poor’s 500 index edged ahead 1.45 points to 835.19, while the NASDAQ composite index improved 11.21 to end the day at 1,541.71.
In economic news, U.S. retail sales jumped 1% in January, reversing a six-month declining trend and defying economists' expectations by posting the biggest increase in 14 months.
The U.S. Commerce Department says January retail sales rose 1% from December after having fallen for six straight months. Economists had expected January sales to show a drop of 0.8%.
The January report shows strong increases in sales of automobiles and in general merchandise stores though sales by department stores, carrying fewer varieties of items, posted a decline.
Questions about the bank bailout plan and economic stimulus bill dragged on stocks throughout the session. The selling gained steam after the release of a bleak report on home prices.
But stocks erased losses and the Nasdaq turned higher after reports surfaced that the Obama administration is working on a plan to modify home loans, a move that could help stabilize the flailing industry.
Early Thursday, the National Association of Realtors said that home prices fell 12.4% in the fourth quarter of last year. The decline left prices at the lowest level since 2003.
A separate report showed weekly unemployment claims remained near a 26-year high. The housing and labor market readings overshadowed a surprise rise in retail sales.
In company news, homebuilder Toll Brothers warned late Wednesday that revenue from building homes will decline by more than half for the quarter ended Jan. 31. The company said home production is at its lowest level in 50 years.
Alcoa announced the sale of its stake in mining company Rio Tinto to Aluminum Corp. of China for $1 billion U.S., well above its $300-million current value.
Treasury prices rose, lowering the yield on the benchmark 10-year note to 2.76% from 2.79% Wednesday.
The March crude contract in New York moved down $1.29 to $34.65 U.S. a barrel.
The April bullion contract in New York was up $4.70 to $949.20 U.S. an ounce.
