The Toronto stock market was little changed Wednesday amid a wave of positive Canadian earnings reports and indications China’s manufacturing slump may have bottomed out.
The S&P/TSX composite approached noon down 5.26 points to 12,220.58
The Canadian dollar faded 0.23 cents to 100.54 cents U.S.
The telecom sector gained while Rogers Communications Inc. shares gained $1.60 to $42.68 as the telecom posted net income of $495 million or 96 cents per share, seven cents better than estimates and up from $489 million or 90 cents per share a year ago.
The firm’s revenue increased to $3.17 billion, up about 1% from the same time last year and largely in line with analyst estimates.
The industrials sector rose as Canadian Pacific Railway Ltd. said its third-quarter net income was $224 million, an increase of $37 million, or 20 per cent and diluted earnings per share of $1.30, up 18 per cent compared with a year earlier. The profit beat analyst estimates by a penny a share and revenue was slightly above the consensus estimate and its shares ran up $4.26 to $92.15.
Teck Resources Ltd. shares were 66 cents higher to $31.20 as the Vancouver-based producer of copper, coal and other minerals announced plans to severely slash capital spending this year and next in the face of a slowing global economy.
The base metals sector was up as Teck also reported net income attributable to shareholders of $180 million or 31 cents per diluted share, compared with $814 million or $1.37 is the same 2011 period. Revenue was $2.5 billion, down from $3.38 billion.
The energy sector was lower while Encana Corp. reported a $1.24-billion U.S. net loss in the third quarter, primarily due to the impact of lower natural gas prices over the past year. But Encana said it’s still on track to meet its financial guidance for the full year.
Most of the quarterly loss was attributed to a non-cash impairment charge that the Calgary-based company says doesn’t affect its operating earnings or cash flow, which were down sharply from last year. Its shares added eight cents to $22.64.
Elsewhere in the sector, Cenovus Energy was off 17 cents to $33.64.
ON BAYSTREET
The TSX Venture Exchange gave back 1.05 points to 1,288.45
The 14 Toronto subgroups were evenly split between gainers and losers. Metals and mining stocks gained 1.2%, industrials were up 1%, while telecoms progressed 0.8%.
The seven laggards were weighed by gold stocks, off 0.8%, while information technology faded 0.6% and health-care issues were 0.5% less robust.
ON WALLSTREET
U.S. stocks inched up Wednesday morning, as investors were encouraged by better-than-expected reports on China's economy and earnings from Facebook.
The Dow eked higher by 9.92 points to break for lunch Wednesday at 13,112.50
The S&P 500 index slid 1.26 points to 1,411.85, while the Nasdaq dipped 4.14 to 2,986.32
Earnings from Facebook helped reverse some of the gloom surrounding third-quarter corporate results. Investors were relieved that the social network’s earnings simply fell in line with expectations. Facebook’s stock is on a tear Wednesday, shooting up more than 20%.
Dow component Boeing reported earnings that beat analysts' expectations and raised its profit outlook for the year. AT&T, another blue-chip company, also reported earnings that topped market expectations and said cash flow this year will be better than previously expected.
Social game maker Zynga will report after the bell. The company announced layoffs on Tuesday.
Netflix shares plunged 15%, after the company on Tuesday reported disappointing figures for new streaming subscriptions and offered weak guidance.
On the U.S. economic front, new home sales for September beat economists' expectations, offering yet another sign of an improving housing market. The U.S. Census Bureau said that new home sales for September came in at an annual rate of 389,000, climbing 5.7% to hit a two-year high.
Wednesday afternoon, the Federal Reserve will issue a policy statement around 2:15 p.m. ET following the conclusion of its latest two-day meeting, though the central bank is not expected to release much new information.
Across the Pacific, Asian markets ended mixed after a report showed China’s manufacturing sector hit a three-month high in October.
HSBC's initial purchasing manager's index for Chinese manufacturing jumped to 49.1 in October from 47.9 the previous month, the bank said Wednesday. Any reading below 50 indicates that factory growth is shrinking rather than picking up speed.
The price of the benchmark 10-year U.S. Treasury sagged, raising the yield to 1.78% from Tuesday’s 1.76%. Treasury prices and yields move in opposite directions.
Oil prices fell $1.23 to $85.44 U.S. a barrel.
Gold prices dropped back $6.80 to $1,702.60 U.S. an ounce.
