Toronto's main stock index inched up at Tuesday’s open, as disappointing U.S. economic data and soft oil prices offset hopes an injection of loans from the European Central Bank would help markets.
The S&P TSX Composite Index began Tuesday’s session up 3.20 points to 12,703.58, after yesterday’s 25-point-plus loss.
The Canadian dollar was up 0.20 cents at 100.32 U.S. cents
Among stocks to watch, Bank of Montreal reported a 34% rise in quarterly earnings, driven by lower losses for bad loans and its acquisition of Wisconsin lender Marshall & Ilsley last year.
Oilfield whiz Calfrac Well Services Ltd. said its fourth-quarter profit jumped nearly fivefold on continued drilling boom in North American oil and gas basins, and the company boosted its dividend payout for the second time in just over two months.
SNC-Lavalin Group Inc said its net income for last year is expected to miss its own expectations by about 18%, or $80 million, as it lost out on some projects and reported unrelated expenses on others.
Ritchie Bros Auctioneers Inc. posted a lower-than-expected fourth-quarter profit and said it continues to see competitive pressures this year as well.
Molybdenum miner Thompson Creek Metals posted a fourth-quarter profit, helped by a non-cash unrealized gain on common stock purchase warrants.
BlackPearl Resources Inc. posted a quarterly profit, helped by an increase in oil prices.
Agnico-Eagle has now set more realistic earnings targets in a move to rebuild investor confidence in the company, CEO Sean Boyd said on Monday.
ON BAYSTREET
The TSX Venture Exchange regained 3.96 points to 1,683.46, while the Nasdaq Canada index fell 0.25 points to 425.68
Nine of the 14 Toronto subgroups started the day negative. Industrials plummeted 2.9%, while utilities fell 0.7% and the metals and mining group capsized 0.5%.
The five gainers were led by materials, up 0.6%, while the gold and consumer staples groups hiked 0.5% hiked.
ON WALLSTREET
In New York, stocks moved higher early Tuesday, as investors weighed a small pullback in oil prices and improving consumer confidence against a worse-than-expected drop in durable goods orders.
The Dow Jones Industrials sneaked up 23.27 points to 13,004.80
The S&P 500 added 1.59 points to 1,369.18, while the Nasdaq gained 18.94 points to 2,985.10
Shares of AutoZone rose Tuesday, after the auto parts retailer's fourth-quarter earnings and sales figures rose and topped analyst expectations. Same-store sales at Autozone improved almost 6% during the last quarter of 2011.
Shares of Apollo Group tumbled after the operator of for-profit University of Phoenix issued a downbeat outlook for 2012, forecasting sluggish growth in new degree enrollment during the second quarter. Shares of fellow for-profit college DeVry also fell.
Cablevision posted earning that were a penny shy of expectations, but sales that were a bit higher than estimates. Shares of the cable provider were flat.
Priceline.com shares spiked after the online travel company beat earnings and revenue expectations late Monday, thanks to strong growth in international hotel bookings.
Dreamworks Animation is slated to report corporate results after the bell Tuesday. Dreamworks is expected to post earnings of 32 cents U.S. per share.
Investors have been keeping a close watch on the oil market, where crude futures rose almost 9% in seven consecutive days, settling at a nine-month high above $109 U.S. a barrel Friday, amid concerns about increased tensions between Iran and Western powers.
The rise in oil prices has translated into higher gas prices, with the national average rising 21 straight days.
But crude futures eased for a second straight day Tuesday, easing worries that higher gas prices could cause the economic recovery to stall if consumers change their spending habits.
Investors were also impressed by a big spike in consumer sentiment in February, with the index now at a one-year high.
However, the gains were limited as investors were disappointed by a 4% plunge in durable goods orders, the biggest drop in three years.
On Monday, the German Parliament approved the nation's contribution to a second bailout for Greece. Later in the day, S&P downgraded Greece's credit rating to "selective default" after the government took legal steps to impose losses on all holders of Greek government bonds.
Investors are growing optimistic ahead of the European Central Bank's second so-called long-term refinancing operation (LTRO) on Wednesday. The central bank will hold its second auction to allow banks to take three-year loans at low interest rates, bolstering their balance sheets.
In its first auction in December, banks borrowed €489 billion from the ECB. Most analysts are expecting the size of the ECB's refinancing stimulus to be even larger on Wednesday, with a high estimate of €1 trillion.
Economically speaking, durable goods orders tumbled 4% in January, following a 3.2% increase the month before. Analysts were expecting that orders slipped 1.3% during the month.
The Conference Board's consumer confidence index rose in February to the highest level in a year. The index climbed to 70.8 from 61.5 in January. Economists were expecting the index to rise slightly to 63.5.
National home prices fell 4% in the fourth quarter of 2011, putting them back at levels last seen in mid-2002, according to the S&P/Case-Shiller national home price index. That's the fifth consecutive annual loss and the biggest decline since 2008, when markets were in freefall and prices plummeted more than 18%.
Treasury prices for the 10-year note gained, lowering yields to 1.90% from Monday’s 1.92%. Treasury prices and yields move in opposite directions.
Oil for February delivery slipped nine cents to $108.47 U.S. a barrel.
Gold futures for April delivery rose $7.70 to $1,782.60 U.S. an ounce.
