North American stock markets still couldn't decide on their direction late this afternoon as Toronto's financial sector tumbled and New York investors shifted into defensive stocks.
The S&P/TSX composite index was off a fraction of a point from Monday’s close to 10,094.12
On the TSX, the financial sector lost while Royal Bank stock lost 86 cents to $43.29.
In earnings, home renovation retailer Rona said that a combination of bad weather and the recession impacted its first-quarter results, pulling it down to a loss of $2.5 million for the period while sales fell 7.2 per cent. Its shares lost $1.02, or 7% to $13.60.
George Weston Ltd. the baked goods producer and parent company of Loblaw, says profits rose to $863 million from $131 million a year ago – helped by an after-tax gain from selling its U.S. fresh bread and baked goods business. Weston shares moved up $2.47 to $65.99.
Groupe Aeroplan Inc. shares lost 7.2% after it reported first quarter net earnings of $23.2 million, sharply lower than net income of $42.1 million a year earlier. The company's stock was down 64 cents to $8.21.
Aircraft repairer Vector Aerospace Corp. saw its shares soar 29 cents or 6.9% to $4.49 after it reported record net profits of $9.2 million for the latest quarter, more than double its earnings last year.
Consolidated Thompson Iron Mines Ltd. says it may need to postpone completion of the Bloom Lake iron ore project in northeastern Quebec if it doesn't raise more money in the coming months. It has $92.7 million from a public share offering made in April, though it says it'll only be able to continue construction at the current pace until July. Its shares dropped nine cents to $2.65.
Sirit Inc. gained a penny to 11 cents after the company said higher sales of transponders for toll roads pushed the company's first-quarter revenues up 29% to $5.6 million. Net losses fell to $1 million from $1.3 million.
Canada posted a bigger-than-expected trade surplus in March, the second in as many months, as imports to the world’s eighth-largest economy fell faster than exports.
The trade surplus of $1.1 billion compared with a revised figure of $262 million in February, according to Statistics Canada. Economists surveyed by Bloomberg forecast the surplus would widen to $500 million in March from an initially reported $126 million in February.
The report supports the Bank of Canada’s April prediction that imports will decline faster than sales abroad this year, leading the trade sector to contribute 0.9 percentage points to gross domestic product in 2009.
The Canadian dollar was up .33 cents, to 86.04 cents U.S.
ON BAYSTREET
Of the 13 TSX subgroups, nine were negative, weighed down by financials, off 2%, consumer discretionaries and information technology stocks, down 1.8%.
The four winning stocks were led upwards by gold, up 4.6%, materials, ahead 4.1%, and consumer staples, 0.8% to the good.
The TSX Venture Exchange gained 15.24 points to 1,078.35 while the Nasdaq Canada Index tailed off 10.94 points to 692.57.
ON WALLSTREET
The Dow Jones Industrials average was marginally in the black, 50.34 points to finish at 8,469.11
The S&P 500 index slid 0.89 points to 908.35, while the Nasdaq Composite Index was 15.32 points in the red, to 1,706.83.
Investors are expected to increasingly turn to the U.S. government's upcoming reports on retail sales and inflation later in the week, because there is little other economic data or earnings on the schedule.
Consumer spending accounts for more than two-thirds of U.S. economic activity so investors will be eager for forecasts from retailers for guidance on whether the economy is stabilizing as many traders have been betting the past two months.
The housing market contracted at a record pace in the first three months of the year, according to a National Association of Realtors report released Tuesday.
The national median price of single family homes sold during the first three months of the year fell 13.8% versus a year ago to $169,000.
The trade deficit for U.S. goods and services rose to $27.6 billion U.S. in March from a revised $26.1 billion U.S. in February. Economists expected a deficit of $29 billion U.S. for March, according to a survey conducted by Briefing.com.
The Treasury budget for April revealed a $20.9-billion U.S. deficit. It was the first during the month in 26 years, reflecting the impact of the recession and economic stimulus efforts.
Economists surveyed by Briefing.com expected a deficit of $20 billion.
Treasury had reported a budget deficit of $191 billion U.S. in March.
Treasury also released its annual report on the health of social security and Medicare, which showed that the recession has hit both programs hard.
On Monday, the White House reported that 750,000 jobs will be saved or created by August as a result of the $787-billion U.S. stimulus package.
Chevron, Exxon Mobil, Johnson & Johnson and Coca-Cola were among the stocks lifting the Dow.
Bank of America reportedly made $7.3 billion U.S. from the sale of 13.5 million shares of China Construction Bank to a group of buyers, according to published reports.
A number of banks sold stock or said they plan to sell stock to raise money.
U.S. Bancorp sold $2.5 billion U.S. of stock and Bank of New York Mellon sold around $1.2 billion U.S. in stock. BB&T is expected to sell $1.5 billion U.S. in stock. Regulators determined that the three banks do not need to raise more capital as a result of the bank stress tests.
In other news, Citigroup said it has approved $8.2 billion U.S. in lending to consumers this year, thanks to the government funding it received through the bank bailout plan.
Automakers were weaker, with General Motors down on growing speculation that the company is likely to file for bankruptcy protection. The shares fell intraday to $1.09 U.S., the lowest level since 1933 Tuesday, one day after a group of the company's executives said they had sold stock and direct holdings in the automakers. They ended at $1.15 U.S., down 29 cents, or 20%.
Ford Motor fell after saying late Monday that it will sell 300 million shares of stock to raise roughly $1.8 billion U.S. in capital.
Treasury prices were little changed, with the yield on the benchmark 10-year note at 3.17% unchanged from Monday. Treasury prices and yields move in opposite directions.
U.S. light crude oil for June delivery rose 35 cents to settle at $58.85 U.S. a barrel on the New York Mercantile Exchange.
COMEX gold for June delivery rose $10.40 to settle at $923.90 U.S. an ounce.
