The Toronto stock market finished Wednesday lower amid a wave of positive Canadian earnings reports and indications China’s manufacturing slump may have bottomed out.
The S&P/TSX composite was down 30.34 points to close at 12,195.50
The Canadian dollar faded 0.25 cents to 100.52 cents U.S.
The telecom sector gained while Rogers Communications Inc. shares gained $1.25, or 3%, to $42.33 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 $5.27, or 6%, to $93.16.
Teck Resources Ltd. shares were 85 cents, or 2.8%, higher to $31.39 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 slid 69 cents, or 3.1%, to $21.87.
Elsewhere in the sector, Cenovus Energy was up 14 cents to end the session at $33.95.
ON BAYSTREET
The TSX Venture Exchange gave back 2.38 points to 1,287.12
Of the 14 Toronto subgroups, eight were negative by the close. Gold lost 1.5%, while materials staggered 1%, and energy stocks were 0.6% to the bad.
The half-dozen gainers were led by industrials, up 1.3%, metals and mining, gaining 1.2%, and telecoms, better by 0.9%.
ON WALLSTREET
Stocks traded in a narrow range Wednesday afternoon, as investors found little reason to place any big bets.
The Dow faded 25.19 points to end Wednesday at 13,077.30
The S&P 500 index slid 4.36 points to 1,408.75, while the Nasdaq dipped 8.77 points to 2,981.70
Earnings from Facebook helped reverse some of the gloom surrounding third quarter corporate results. Investors were relieved that Facebook’s earnings came in as expected, and sales rose 24%.
Shares of the social media company shot up more than 20%, bringing others along with it. Zynga, which reports after the bell, rose 3%, while LinkedIn and Yelp also logged gains.
Boeing reported earnings that beat analysts' expectations and raised its profit outlook for the year. By late afternoon, the aircraft manufacturer's stock dipped slightly, after being among the biggest gainers on the Dow for most of the day. AT&T, another of the major
blue chips, edged lower despite activating 1.3 million iPhones during the quarter.
The Manhattan U.S. attorney filed a $1 billion U.S. lawsuit against Bank of America Corp for what it claims are the bank's fraudulent practices underwriting mortgages through Fannie Mae and Freddie Mac
Netflix shares plunged nearly 12%, after the company reported disappointing earnings 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.
Investors shrugged off the U.S. Federal Reserve’s latest policy statement, which, as expected, didn't signal any major changes to interest rates or the central bank's plan to stimulate the economy through large bond-buying programs.
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 $1.05 to $85.62 U.S. a barrel.
Gold prices dropped back $6.90 to $1,702.50 U.S. an ounce.
