The Toronto stock market was little changed Thursday amid a mixed bag of earnings reports and positive economic data.
The S&P TSX Composite Index eked higher by 17.37 points by noon to 12,718.63
The Canadian dollar regained 0.15 cents to 100.18 U.S. cents
Grocer Loblaw was a major decliner, down 5.25% to $35.40 as quarterly profits rose 5% to $174 million or 62 cents per share and revenue grew 3.6% to $7.37 billion. But it warned that the current year looks to be less profitable as the company expects to invest some $70 million in information technology and supply chain improvements.
In Toronto, the energy sector was up as Suncor Energy gained 21 cents to $35.82.
Oil prices have shot up from $96 U.S. at the beginning of the month over mounting tension over Iran’s nuclear program.
The base metals sector was off as the March copper contract was off five cents to $3.80 U.S. a pound, still retaining most of a 13-cent surge from earlier in the week after China’s central bank moved to cut banks’ reserve ratios to loosen lending and encourage growth. China is world’s biggest consumer of copper, which is viewed as an economic bellwether since it is used in so many businesses.
First Quantum Minerals was down 21 cents to $22.98.
The gold sector was up as Goldcorp Inc. rose 40 cents to $49.66.
Elsewhere on the earnings front, Tim Hortons Inc. profit fell to $103 million or 65 cents per share in the fourth quarter from $377.1 million or $2.19 per share in the same 2010 period when it booked a gain from the sale of its stake in joint venture Maidstone Bakeries.
Quarterly revenues rose 21% to $779.8 million from $643.5 million in the year-earlier period.
The coffee and doughnut chain also said it is increasing its quarterly dividend 23.5% to 21 cents and its shares gained $1.58 to $52.24.
Home hardware and gardening retailer Rona Inc. posted a loss of more than $151 million in the fourth quarter as the company took restructuring charges to reflect weak markets and a plan to refocus the company.
The showing compared with a profit of about $20 million a year earlier. Quarterly sales rose 2.6% to $1.17 billion and Rona shares fell 15 cents to $9.24.
Forest products maker Cascades Inc. had a net loss excluding special items of $4 million or four cents a share in the three months ended Dec. 31. That compared with net earnings of $17 million or 17 cents a share for the same period the previous year. Sales in the quarter rose 17% to $913 million. Cascades shares dropped 12 cents to $4.32.
Alamos Gold Inc. increased its semi-annual dividend 43% to 10 cents per share. The miner also reported an increase in fourth-quarter earnings to $21.3 million U.S. or 18 cents per share compared with $18.3 million U.S. or 16 cents per share in the same prior-year period. Its shares rose five cents to $20.
In other corporate news, Air Canada’s baggage handlers, ground crews and maintenance workers on Wednesday rejected a tentative deal signed earlier this month with Canada’s biggest airline. The airline’s shares added two cents to $1.04.
On the economic calendar, Statistics Canada reported this morning that average weekly earnings of non-farm payroll employees grew in December to $888.26, up 0.7% from November. On a year-over-year basis, earnings rose 2.4%.
ON BAYSTREET
The TSX Venture Exchange strengthened 4.76 points to 1,689.71, while the Nasdaq Canada index tacked on 4.41 points to 420.53
Nine of the 14 Toronto subgroups had moved into the green by midday. Health-care stocks were 2.3% more solid, while gold hiked 0.9% and materials improved 0.5%.
The five laggards were weighed by consumer staples, off 1.8%, telecoms, down 0.4%, and industrials, sliding 0.2%.
ON WALLSTREET
In New York, stocks traded in a tight range Thursday, as investors found little reason to make any big moves in either direction.
The Dow Jones Industrials climbed 51.05 points by noon ET, to 12,989.70
The S&P 500 regrouped 3.41 points to 1,361.07, while the Nasdaq added 19.85 points to 2,953.02
The Dow is up 6% from the start of the year, the S&P 500 has gained nearly 8% and the Nasdaq has jumped 13%.
On the Dow, IBM, Travelers and Disney offset declines, the bulk of which came from Hewlett-Packard. As PC sales swooned, HP's profit fell by a dramatic 44% and sales sank 7% in its latest fiscal quarter, which ended on Jan. 31.
T-Mobile, owned by Germany's Deutsche Telekom, said "not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011." The company lost 526,000 customers during the quarter, compared to adding 126,000 during the third quarter of 2011.
Meanwhile, AT&T's board cut CEO Randall Stephenson's 2011 pay by $2 million U.S., as a direct response to the failed T-Mobile takeover bid.
Kohl's posted fourth-quarter results in-line with Wall Street's estimates, but the retailer's first-quarter forecast fell short of expectations. Kohl's raised its quarterly dividend by 28% to 32 cents U.S. per share.
Sears Holdings reported earnings that fell far short of forecasts, and said it planned to sell of some of its stores in an effort to raise $400 million to $500 million U.S. The retailer -- which also owns K-mart as well as the Kenmore, Craftsman and Lands' End brands -- has been struggling for months.
Target reported better-than-expected fourth-quarter earnings, and said it expects profit growth of 3% to 8% this year.
Apple holds its shareholder meeting in Cupertino, Calif., on Thursday.
While worries about Greece continue to loom in the background, investors were encouraged by a reading on Germany's business conditions that rose for a fourth straight month in February -- the highest level since July, according to the Munich-based Ifo institute.
Meanwhile, the European Commission said Thursday that it expects the euro-zone will likely face a mild recession in 2012, thanks to negative growth in Greece, Portugal, Spain and four other countries.
One expert said markets are "more resilient" to negative economic data now than in the past, when stocks would have wild 100-point swings on the tiniest negative (or positive) headline.
Economically speaking, the U.S. Federal Housing Finance Agency is scheduled to release its Housing Price Index for December.
Moreover, the number of workers filing for unemployment in the United States was 351,000, the U.S. Labor Department reported before markets opened. That's slightly better than analysts' forecasts and unchanged from the week prior, which was revised up from 348,000.
Treasury prices for the 10-year note dipped a bit, raising yields to 2.02% from Wednesday’s 2.00%. Treasury prices and yields move in opposite directions.
Oil for February delivery slipped 15 cents to $106.16 U.S. a barrel.
Gold futures for April delivery rose $8.70 to $1,780 U.S. an ounce.
