The Toronto stock market was mildly positive Tuesday as U.S. retail sales surged last month while Germany posted stronger-than-expected growth during the second quarter.
The S&P/TSX Composite index moved up 15.28 points to end the session at 11,853.61
The Canadian dollar inched up 0.08 cents to 100.82 cents U.S.
The TSX energy sector gained as Canadian Natural Resources was ahead 56 cents to $30.71.
The financial sector was also supportive with Manulife Financial up 13 cents to $11.36.
The base metals sector was down slightly as metal prices also climbed after two days of declines in the wake of surprising drops in Chinese exports and Japanese economic growth. The September copper contract on the Nymex edged up a penny to $3.36 U.S. a pound. Sherritt International ended the day unchanged at $4.58.
Gold stocks slumped, as Barrick Gold Corp. declined eight cents to $33.88.
On the corporate front, a showdown could be brewing between fertilizer giant Agrium and a U.S. hedge fund, which has accumulated a significant minority stake in the Calgary-based company. Its shares rose 40 cents to $95.93.
Agrium says it has carefully evaluated and rejected the idea of spinning off its retail division, saying shareholders would face too much risk. Agrium made the statement after the Wall Street Journal reported U.S. hedge fund Jana Partners has purchased nearly 5% of Agrium’s stock in a move to push the fertilizer giant to cut costs and sell its retail arm.
In other corporate developments, ATS Automation Tooling Systems Inc. had a $9.8-million profit in its latest quarter, compared to a loss of $5 million or six cents per share a year ago, as it reduced losses from its troubled solar equipment arm. Its shares climbed 43 cents, or 5.1%, to $8.87.
ON BAYSTREET
The TSX Venture Exchange stepped back 0.36 points to 1,195.01. The Nasdaq Canada fell 4.01 points to 344.25.
Nine of the 14 Toronto subgroups were down on the day. Metals and mining stocks plummeted 3%, while global base metals suffered 1.7%, and information technology dropped 1.3%.
The five gainers were led by financials, up 0.6%, health-care, gaining 0.5%, and energy, ahead 0.4%.
ON WALLSTREET
U.S. stocks were mixed Tuesday as investors welcomed encouraging data on the U.S. economy and from the euro-zone.
The Dow Jones industrial average stayed ahead 2.71 points to close at 13,172.10.
The S&P 500 slipped 0.18 points to 1,403.93. The Nasdaq slid 5.54 points to 3,016.98.
Investors were heartened after a government report showed that U.S. retail sales rose for the first time in four months in July, a sign that the economy may have started strengthening in the middle of the summer.
Home Depot shares rose sharply, leading the gains among Dow components. The home-improvement retailer's second-quarter earnings topped expectations, though revenue fell short of estimates.
Estee Lauder shares shot up 10%, making them the top gainer in the S&P 500. The cosmetics maker reported better-than-expected quarterly results.
Shares of Saks were also higher on strong earnings.
Michael Kors shares jumped after the luxury retailer posted earnings that tripled from a year earlier, trouncing forecasts.
TJX shares edged higher after the retailer beat earnings expectations by a penny.
Groupon shares dove after the local deals provider beat earnings estimates but missed on revenue.
Shares of Google rose above $670 U.S. a piece to the highest level since January 2008. Shares of Apple also edged higher, and are now less than 1% away from their all-time-high.
France and Germany released second-quarter gross domestic product figures that beat analysts' expectations, but preliminary data showed the euro-zone economy on the whole continued to shrink.
Euro-zone GDP shrank by 0.2% between April to June compared to the previous quarter and 0.4% year-over-year, according to flash estimates published by Eurostat, the statistical office of the European Union. In the first quarter of 2012, GDP was unchanged.
While the data came in higher than forecasts, economists say that the numbers still point to a gloomy picture, leaving concerns about the euro-zone crisis intact.
On the economic ledger, retail sales in the U.S. climbed for the first time in four months, up 0.8% in July, the Census Bureau reported Tuesday. Economists had expected a 0.2% increase.
Producer prices also beat estimates, increasing 0.3%, according to the U.S. Bureau of Labor Statistics. Prices were expected to rise by 0.2%.
Business inventories rose 0.1% in June, slightly slower than the 0.2% rise were looking for.
The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.73% from Monday’s 1.65%. Treasury prices and yields move in opposite directions.
Oil for September delivery strengthened 69 cents to $93.24 U.S. a barrel.
Gold futures for December delivery fell $10.20 to settle at $1,602.40 U.S. an ounce.
