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 dropped 38.92 points to finish the day at 12,009.90
The Canadian dollar strengthened 0.31 cents to 101.24 cents U.S.
BMO shares ran ahead 32 cents to $58.02 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 14 cents to $52.80, 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 54 cents to $54.15.
The energy sector was down even as oil prices rose amid an intense fire at the Amuay refinery in western Venezuela. Talisman Energy dipped seven cents to $13.96.
In the gold field, Barrick Gold Corp. climbed 14 cents to $37.31.
The base metals sector fell while September copper was off two cents at $3.46 U.S. a pound. HudBay Minerals declined 12 cents to $8.50.
In other corporate news, Yellow Media Inc. is threatening to reduce almost $2 billion of debt through creditor protection if a recapitalization plan is voted down at a special meeting Sept. 6. Its shares were unchanged at five and a half cents.
ON BAYSTREET
The TSX Venture Exchange faded 4.94 points to 1,241.88. The Nasdaq Canada fell 0.05 points to 347.88
All but one of the 14 Toronto subgroups were lower Tuesday, as the metals and mining, health-care and utilities groups each lost 0.7%.
Only financials held out against the negative tide, squeezing ahead 0.2%.
ON WALLSTREET
U.S. stocks were mired in a tight range Tuesday, getting some support from a better-than-expected report on the U.S. housing market.
The Dow Jones industrial average demurred 21.68 points to 13,103.
The S&P 500 index gave back 0.46 points to 1,409.98, but the tech-heavy Nasdaq Composite Index was positive by 3.95 points to 3,077.14.
Shares of Movado Group Inc shot up 17% 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 afternoon trading.
Shares of Lexmark, known for making printers, shot up 17% Tuesday after the company announced it would fully exit the inkjet consumer business, lay off 1,700 workers and focus on its more profitable imaging and software businesses.
Lexmark also announced an additional $100-million U.S. stock buyback.
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 Hurricane 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 77 cents to $96.21 U.S. a barrel.
Gold futures for December delivery fell $6.10 to $1,669.50 U.S. an ounce.
Stocks fall with consumer confidence
