Canada’s main stock index showed signs of recovery by noon Tuesday, after a triple-digit loss at the outset, triggered by fears of what may happen (or not happen) on the Greek debt stage.
The S&P TSX Composite Index approached midday down 32.22 points to 12,527.63
The Canadian dollar regained 0.10 cents at 100.52 cents U.S.
The energy sector declined as Cenovus Energy lost 41 cents to $37.70.
The base metals component slipped while copper prices also gave back gains with the March contract down four cents to $3.82 U.S. a pound. Teck Resources lost 60 cents at $41.90.
The gold sector was off as Goldcorp Inc. faded 36 cents to $46.91.
Financials were also weak with Bank of Montreal down 32 cents to $58.15.
Research In Motion Ltd. shares were ahead 19 cents to $16.72 after oilfield services provider Halliburton Co. said it would replace its 4,500 company-issued BlackBerrys with Apple Inc. iPhones to help employees do their jobs more effectively in the field.
A Halliburton spokeswoman said the company is switching because the iPhone does a better job of supporting company applications like Insite Anywhere, which displays information on well construction and completion.
In earnings news, Canfor Pulp Products Inc. said its net income in the fourth quarter was $5.9 million or 17 cents per share, compared to a loss of $11.3 million or 32 cents per share a year earlier. Its shares fell 90 cents to $12.85.
On matters economic, Statistics Canada reported this morning that municipal building permits totaled $6.8 billion in December, growing 11.1% from November to the highest level since June 2007, attributable largely to a boost in multi-family dwellings in Ontario and commercial buildings in Alberta.
ON BAYSTREET
The TSX Venture Exchange backpedaled 3.62 points to 1,660.60, while the Nasdaq Canada index rebounded 1.89 points to 426.50
All but four of the 14 Toronto subgroups were still negative by noon, weighed mostly by metals and mining and energy stocks, each off 1.4%, while global base metals suffered 1.2%.
The four gainers were paced by industrials and gold, each up 0.2%, and financials, inching up 0.1%.
ON WALLSTREET
In New York, stocks emerged from their dungeons by noon Tuesday, as investors wait for Greek leaders to agree on the terms of a new bailout package, a key step to avoiding a default.
The Dow Jones Industrials climbed 31.29 points midday to 12,876.40.
The S&P 500 picked up 2.11 points to 1,346.44, while the tech-rich Nasdaq reacquired 6.47 points to 2,908.46
Experts said investors have been encouraged by recent moves by the European Central Bank to stabilize the banking sector. And an improved outlook for the U.S. economy has helped boost the market so far this year, they added.
So far this year, the Nasdaq is up 11%, the S&P500 is up about 7%, and the Dow has gained 5%.
In addition to Greece, investors will also be turning their attention to Washington on Tuesday. Federal Reserve Chairman Ben Bernanke is testifying before the U.S. Senate's budget committee on the economic outlook and the federal budget.
Investors will be especially interested to hear the Fed chief's thoughts on more stimulus measures, the prospects for which continue to dim -- especially after the monster January jobs report.
Commodities trader Glencore International agreed to buy Xstrata for $61.9 billion U.S., making it the biggest mining takeover in history. The deal will create a $90-billion U.S. company.
Shares of Sears Holding Company rallied amid speculation it was working with Goldman Sachs to find a buyer for the troubled retailer.
Investors also have a smattering of corporate results to parse through on Tuesday.
Oil company BP posted increased fourth-quarter profits and raised its dividend on Tuesday. The company hailed the improved result as a turning point in the long climb back from Gulf of Mexico oil spill of 2010.
But shares of BP slipped, as investors remain wary of how much the spill will cost following a trial that is set to begin later this month.
Shares of UBS lost ground after the Swiss bank posted a 75% drop in its fourth-quarter profit and missed forecasts. The bank also issued a bleak outlook for the current quarter -- noting that concerns over the European debt crisis, U.S. deficit and ongoing uncertainty about the global economic outlook will have a "negative influence on client activity levels."
Yum! Brands' stock spiked after the fast-food operator topped earnings expectations late Monday, thanks to sales growth in China.
Coca-Cola shares edged higher after the beverage maker topped earnings and sales estimates for the fourth quarter.
Insurance company Unum Group reported a net loss for the fourth quarter, driven largely by a one-time charge.
Walt Disney results are on tap after the bell.
Investors remain on edge over the fate of Greece, as worries about a default resurface. The nation's leaders are expected to meet Tuesday to discuss additional austerity measures.
The government is negotiating reforms needed for Greece to receive a second bailout of €130 billion from the European Union, International Monetary Fund and European Central Bank. Without additional funding, Greece will most likely miss a €14.5-billion bond redemption in March, causing shock waves throughout the global financial system.
On the economic front, the Federal Reserve will release the consumer credit report for December at 3 p.m. ET. Analysts surveyed by Briefing.com expect the report to show that consumer credit expanded by $8.5 billion U.S. in December, much smaller than November's $20.4-billion U.S. expansion.
Treasury prices for the 10-year note drooped, boosting yields to 1.97% from Monday’s 1.90%.
Treasury prices and yields move in opposite directions.
Oil for February delivery grew $1.45 to $98.36 U.S. a barrel.
Gold futures for April delivery fell $3.60 to $1,721.30 U.S. an ounce.
