The Toronto stock market was little changed Tuesday but the financial sector supplied some lift after Bank of Montreal and Scotiabank released quarterly earnings that beat expectations.
The S&P/TSX Composite index remained above breakeven by 9.05 points to greet noon at 12,057.87
The Canadian dollar strengthened 0.47 cents to 101.4 cents U.S.
BMO shares ran ahead 49 cents to $58.19 as the bank posted net income of $970 million or $1.42 per share, up 37% from a year ago. On an adjusted basis, the bank’s earnings were $1.49 per share, beating analyst expectations by 10 cents. BMO also increased its dividend by two cents to 72 cents a share.
But Scotiabank’s shares lost early momentum to move down 11 cents to $52.83 even as its quarterly net profits grew by 57% to $2.05 billion or $1.69 a share, while the bank’s core EPS was $1.22 per share, three cents better than expectations.
The bank also said it was also raising its quarterly dividend by two cents, to 57 cents per share.
The Scotiabank results were helped by an after-tax gain of $614 million from the sale of its headquarters in Toronto’s financial district.
On the TSX, the financial sector gained with Royal Bank ahead 75 cents to $54.66.
The energy sector was down even as oil prices rose amid an intense fire at the Amuay refinery in western Venezuela. Talisman Energy dipped six cents to $13.97.
In the gold sector, Barrick Gold Corp. climbed 32 cents to $37.49.
The base metals sector fell while September copper was off two cents at $3.46 U.S. a pound. HudBay Minerals declined 11 cents to $8.51.
ON BAYSTREET
The TSX Venture Exchange faded 2.46 points to 1,244.36. The Nasdaq Canada eked ahead 1.02 points by noon to 348.95
Eight of the 14 Toronto subgroups were lower midday, as health-care stocks were 0.9% less robust, telecoms garnered 0.4%, and utilities slid 0.3%,
The half-dozen gainers were led by financials, up 0.7%, consumer staples, adding 0.2%, and materials, 0.1% stronger.
ON WALLSTREET
U.S. stocks were little changed Tuesday, in what's shaping up to be yet another quiet day on Wall Street.
The Dow Jones industrial average gained 6.04 points by midday to 13,130.71
The S&P 500 index took on 1.52 points to 1,411.96, while the tech-heavy Nasdaq Composite Index was positive by 8.81 points to 3,072.
With little on the economic or corporate front, most investors are just waiting to hear what Fed Chairman Ben Bernanke has to say when he speaks Friday in Jackson Hole, Wyo. Investors are hopeful that he will announce further action to ease growing concerns about a U.S. economic slowdown.
Shares of Movado Group Inc., shot up 14% after the luxury watchmaker reported better-than-expected earnings and raised its forecast for the year.
H.J. Heinz Co Chief Executive William Johnson said the food company expects to report strong first-quarter results Wednesday, sending the company's shares nearly 3% higher in early trading.
Best Buy shares rose Tuesday, a day after the electronic retailer's announcement that it will give its founder, Richard Schulze, the chance to take a closer look at its financial statements as he finalizes a takeover proposal.
Meanwhile, investors are also keeping tabs on oil prices, which crept, as Tropical Storm Isaac curtailed oil production along the Gulf of Mexico.
The national average price for a gallon of regular gas continues to increase, hitting $3.76 U.S. Tuesday, according to the American Automobile Association. Experts say that prices could shoot up another 10 cents fairly quickly, depending upon the extent and duration of the refinery shutdowns.
Economically speaking, the S&P/Case-Shiller national home price index, which covers more than 80% of the housing market in the United States, rang up a 6.9% gain in the second quarter. Analysts had expected a 0.3% decrease.
The report indicates that the sharp boost in home prices could signal a recovery in the long-suffering U.S. housing market.
However, consumer confidence tumbled in August, marking the worst reading since November. The sharp decline was driven by growing concern about the job market, along with a dour outlook for business conditions over the next six months.
The closely watched index from The Conference Board fell to 60.6 from 65.4 in July. That was worse than the 65.7 expected by economists surveyed by Briefing.com.
The price on the benchmark 10-year U.S. Treasury rose, pushing the yield down to 1.63% from 1.65% late Monday. Treasury prices and yields move in opposite directions.
Oil prices for September delivery hiked 43 cents to $95.90 U.S. a barrel.
Gold futures for December delivery fell $3.60 to $1,672 U.S. an ounce.
