The Toronto stock market gave up early gains mid-morning Wednesday as gold stocks and bullion backed off amid further signs of increasing economic growth in the U.S.
The S&P TSX Composite Index greeted noon Wednesday down 100.52 points to 12,639.95.
The Canadian dollar was up 0.88 cents at 101.36 U.S. cents, after earlier hitting a 5½-month high of 101.29 cents U.S. Appetite for riskier currencies such as the loonie was supported by a move by the European Central Bank to make €529.5 billion in low-interest loans to banks, the second round of a massive credit infusion.
The first offer of three-year, low-interest credit to banks on Dec. 21 has been credited with easing fears of a financial meltdown in the euro-zone due to lack of confidence with governments with too much debt and too little growth.
The TSX gold sector fell as Goldcorp Inc. declined 61 cents to $49.16 while Barrick Gold Corp. lost 62 cents to $48.63.
The tech sector climbed with CGI Group ahead 24 cents to $21.25.
The TSX energy sector gained after data showed that U.S. crude and oil product inventories were mixed last week. The American Petroleum Institute said late Tuesday that crude inventories rose 521,000 barrels while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of one million barrels.
Inventories of gasoline fell 916,000 barrels last week.
Canadian Oil Sands gained 27 cents to $23.61.
The metals and mining sector was ahead while copper prices were also higher with the March contract up two cents to $3.93 U.S. a pound.
Signs of an improving U.S. economy and hopes that China will loosen lending requirements to encourage growth have boosted copper prices almost four per cent during February. First Quantum Minerals climbed 32 cents to $23.15 and HudBay Minerals gained eight cents to $12.14.
Insurers helped take the financial sector up as Sun Life Financial improved by 30 cents to $21.83.
Torstar Corp., a newspaper and book publisher with growing digital businesses, reported a 77% jump in profits in the latest quarter to $64.3 million or 81 cents a share. But it added the advertising business remains soft because of the sluggish economy.
Quarterly revenues rose to $425.3 million from $417.5 million and its shares gained 36 cents to $9.71.
Miranda Technologies Inc. said fourth-quarter profits came in at $3.5 million, up from $3.3 million a year ago, as the company was affected by a foreign exchange loss. Its shares dropped 88 cents or eight per cent to $10.12.
ON BAYSTREET
The TSX Venture Exchange faltered 27.97 points to 1,665.22, while the Nasdaq Canada index dipped 2.50 points to 430.66
All but four of the 14 Toronto subgroups turned negative by noon. Gold collapsed 3.5%, while materials slumped 2.5% and global base metals fell 2.3%.
The four gainers were led by consumer staples, up 0.4%, while health-care and consumer discretionary stocks gained 0.2% each.
ON WALLSTREET
In New York, in another day of milestones, the Nasdaq crossed the 3,000 mark Wednesday morning for the first time since December 2000, yet the tech-heavy index quickly dropped as investors feared an end to economic stimulus programs.
The Dow Jones Industrials gave back earlier gains to slide 18.81 points to 12,986.30 by lunch time.
The S&P 500 subtracted 2.94 points to 1,369.24, while the Nasdaq fell 3.55 points to 2,983.21
On Tuesday, the Dow closed above 13,000 for the first time since May 2008. The S&P 500 closed at its highest level since June 2008.
Apple shares moved higher, boosting the company's value on the stock market to above $500 billion U.S. -- another record high for what was already the world's most valuable company.
Shares of News Corp rose, after the publishing company announced that James Murdoch stepped down as executive chairman of the U.K. publishing unit. The son of Rupert Murdoch has been embroiled in questions over his role in a U.K. hacking scandal.
Shares of First Solar tumbled after the leading maker of thin-film solar panels issued disappointing quarterly results. First Solar also lowered its forecast for sales in 2012 late Tuesday.
Shares of Staples fell even though the office supply chain posted better-than-expected earnings and sales figures for the fiscal fourth quarter.
Costco topped earnings and sales estimates for the fiscal second quarter, sending the stock higher.
Shares of Liz Claiborne fell despite posting fourth-quarter earnings in line with expectations, and better-than-expected sales.
Stocks moved higher in early trading on positive U.S. economic reports and after the European Central Bank released details on a larger-than-expected lending program to European banks to stave off a credit crunch.
Market sentiment chilled, however, as Federal Reserve Chairman Ben Bernanke failed to give investors hope that the U.S. central bank would continue to offer monetary support to the market during his testimony before members of Congress on Wednesday.
Before U.S. markets opened, the ECB announced results of its second Long-Term Refinancing Operation, a program designed to let banks borrow money for 3 years at interest rates as low as 1%. The central bank said it will lend €529.5 billion, or $721.4 billion U.S., to European banks, more than the €500 billion it doled out during the program's first round in December.
Economically speaking, the U.S. government said the economy grew at an annual rate of 3% during the fourth quarter, up from its initial estimate of 2.8%.
The February installment of the Chicago Purchasing Managers Index came in higher than expected at 64.0, above January levels and still well above the 50 threshold that signifies manufacturing expansion.
The Fed's Beige Book, a summary of reports from its 12 district banks, comes on the same day Fed chairman Ben Bernanke is scheduled to offer testimony on the economy and monetary policy before the House Financial Services Committee.
Treasury prices for the 10-year note lost ground, moving yields up to 1.99% from Tuesday’s 1.93%. Treasury prices and yields move in opposite directions.
Oil for February delivery demurred $1.17 to $105.38 U.S. a barrel.
Gold futures for April delivery fell $65.10 to $1,722.50 U.S. an ounce.
