The Toronto stock market was negative Thursday amid lower commodities and while Spain and Italy felt the pressure of higher borrowing costs.
The S&P/TSX Composite Index approached noon off 22.27 points to 11,475.60
The Canadian dollar was up 0.51 of a cent this morning to 97.59 cents U.S.
Traders seemed disinclined to make big moves on commodity markets as well.
The base metals sector declined, with July copper off a penny at $3.33 U.S. a pound. Teck Resources gave back 44 cents to $31.88.
The energy sector dipped with Suncor Energy down 15 cents to $28.71.
The gold sector was down as Goldcorp Inc. faded 59 cents to $40.64.
The tech sector fell with Research In Motion Ltd. down 36 cents at $10.64.
In earnings news, shares in travel and vacation company Transat A.T. Inc. lost 23 cents to $4.13 after it posted a net loss of $13.2 million or 35 cents for its latest quarter. Overall revenue rose by $111 million to $1.2 billion due an acquisition in Transat’s North American arm, offset by lower selling prices and higher costs. Analysts had been expecting a smaller loss.
Hockey equipment company Bauer Performance Sports Ltd. is buying Cascade Helmets Holdings Inc. for $64 million U.S. in a bid to expand its lacrosse business and acquire the company’s patented helmet technology. Bauer shares were off 11 cents at $7.95.
On the economic front, Statistics Canada noted this morning that its new housing price index kept its momentum going, climbing 0.2% in April, following a 0.3% hike in March.
ON BAYSTREET
The TSX Venture Exchange gained 10.69 points to 1,254.57. The Nasdaq Canada index moved into the green by 0.51 points to 366.18
All but four of the Toronto subgroups were down by midday. Information technology slumped 2%, consumer staples were down 0.9%, and gold sagged 0.6%
The four gainers were led by health-care, up 1.2%,, while energy led Wednesday’s close by 0.5%, and global base metals acquired 0.3%.
ON WALLSTREET
U.S. stocks advanced Thursday, amid growing speculation and hope that the Federal Reserve may soon pull the trigger on more economic in light of a weakening job market.
The Dow Jones Industrials gained 105.58 points as noon time approached to 12,602.
The S&P 500 was 10.72 points better, at 1,325.60. The Nasdaq Composite Index improved 16.27 points to 2,834.88
Shares of cellphone maker Nokia dropped after the Finnish company announced it was cutting 10,000 jobs worldwide, and warned that competition in the smart phone business would hit results somewhat more than expected in the second quarter.
Shares of meat producer Smithfield Foods slipped after the company reported a bigger-than-forecast drop in earnings.
Shares of grocery chain Kroger rose, after it reported a better than expected increase in earnings and a $1-billion share buyback program.
Shares of Yammer popped on reports that Microsoft is talks with the rival business social networking firm to buy it out.
Calls for the Fed to take more simulative stems have been growing for several months. Hopes are that the central bank will either launch a third round of bond purchases, known as quantitative easing or QE3, or extend its current policy of Operation Twist, which is set to expire at the end of June.
Worries remain heightened about Spain, after rating agencies Moody's and Egan-Jones both downgraded the country on Wednesday. Moody's, which left Spain's rating just above junk status, warned that it is at risk of additional downgrades. It cited concern about Spain's debt load, its bleak economic prospects and its access to credit in private markets.
The struggling country recently requested up to €100 billion from the European Union to recapitalize its ailing banks. But with the higher borrowing costs, investors are worried the country will need even more help.
Economically speaking, the U.S. Labor Department reported filing for initial unemployment benefits rose to 386,000 during the week ending June 9, up from the revised 380,000 the previous week. That was a higher than expected reading for that closely-watched snapshot of the still struggling jobs market.
The department also reported that retail prices fell 0.3% in May compared to April levels, driven down by the falling gas prices. It was the first drop in the Consumer Price Index in two years, and a slightly bigger drop than forecast.
The price on the benchmark 10-year U.S. Treasury sagged a mite, raising yields to 1.63% from Wednesday’s 1.60%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil reversed course and jumped 72 cents to $83.34 U.S.
Gold futures for August delivery edged up $6.00 to $1,625.40 U.S. an ounce.
