The Toronto stock market was positive and New York markets reopened for business Wednesday after Superstorm Sandy forced a two-day shutdown of U.S. financial markets.
The S&P/TSX composite approached noon Wednesday up 77.20 points to 12,454.25
The Canadian dollar slid 0.16 cents to 99.93 cents U.S.
The base metals sector rose as December copper on the New York Mercantile Exchange gained four cents to $3.55 U.S. a pound. Teck Resources rose 55 cents to $31.75.
Sherritt International Corp. shares fell 19 cents to $4.29 as the miner swung to a $22.6-million loss in the third quarter on $42.8 million of net charges. Revenues fell 9% to $422.2 million due to lower nickel prices and volumes and lower exports of thermal coal, partially offset by higher fertilizer revenues and the impact of a weaker Canadian dollar.
The gold sector was also up as Iamgold improved by 24 cents to $15.37.
In the energy sector, Canadian Natural Resources was ahead 29 cents to $30.33.
Financials also provided lift to the TSX with Manulife Financial up 12 cents to $12.39.
Scotiabank announced Wednesday that the head of its international operations, Brian Porter, has been promoted to president of the bank. Porter takes over those duties from Rick Waugh, who continues his role as chief executive officer and Scotiabank shares were up 34 cents at $54.48.
In Canada, Torstar Corp., the Toronto-based publisher of newspapers, books and digital content, says third-quarter net income fell to $14.1 million, or 18 cents per share, from $25.2 million or 32 cents per share a year earlier. Ex-items earnings fell to 29 cents per share from 37 cents per share. Revenue was $355.3 million, down from $378.7 million a year before and its shares declined 35 cents to $8.25.
Maple Leaf Foods Inc. net earnings dropped to $32.6 million, from $43 million in the third quarter of 2011. Revenue slipped to just under $1.24 billion from just over $1.26 billion. Earnings per share before adjustments were 22 cents and 29 cents per share after adjustments in the three months ended Sept. 30, both below estimates compiled by Thomson Reuters and its shares slipped seven cents to $11.
There was also major merger and acquisition news to digest. Potash Corp. of Saskatchewan, the world’s largest fertilizer producer by market value, has confirmed there have been talks to increase its ownership stake with Israel Chemicals Ltd. Potash Corp. already owns 13.84% of the company.
Word of the talks surfaced earlier in a disclosure document filed on the Tel Aviv Stock Exchange by Israel Corp., the largest shareholder in Israel Chemicals. Potash shares were up 46 cents to $40.43.
On the economic beat, Statistics Canada reported that the economy lost some of its shine in August. Real gross domestic product edged down 0.1% two months ago, the first monthly decline since February.
The nation’s number crunchers also said that goods production declined 0.5% in August, mainly as a result of decreases in mining and oil and gas extraction and in manufacturing. Declines were also recorded in utilities and construction.
ON BAYSTREET
The TSX Venture Exchange gathered 7.28 points to 1,310.20
All but two of 14 Toronto subgroups were higher by noon, led by gold, surging 1.9%, materials, taking on 1.6%, and the metals and mining group, gaining 1.3%.
The two laggards were health-care, down 0.7%, and real-estate, off 0.4%.
ON WALLSTREET
U.S. stocks turned negative Wednesday midday as the markets reopened following a two-day closure due to Hurricane Sandy.
The Dow Jones Industrials tailed off 18.35 points to 13,088.90, while the S&P 500 stumbled 1.52 to 1,410.42, and the Nasdaq Composite Index was down 16.73 at 2,971.22
Volume was expected to be very high as the NYSE, Nasdaq and other markets execute their first trades after two unscheduled days in the dark. But with many Wall Street professionals away from their desks, the number of shares changing hands early Wednesday was relatively low.
Investors focused on companies that could benefit from the cleanup effort. Home improvement retailers such as Home Depot, which rallied 4% and Lowe's, which was up almost 6%, were viewed as companies that may benefit as consumers and businesses seek to rebuild areas damaged by Sandy.
Shares of Generac, a generator maker, jumped 10% after the company boosted its earnings and revenue forecast for the year, as a result of "increased demand for home standby and portable generators" in the aftermath of Hurricane Sandy.
Insurance stocks, such as AIG, which was down more than 1% in early trading, Allstate, and Hartford Financial could face pressure.
Shares of Facebook were down about 4% in early trading. Many Facebook employees will finally get a chance to sell their shares for the first time Wednesday, after a lockup on their so called "restricted stock units" expired. A total of 234 million Faebook shares will be newly eligible for sale.
Apple shares fell below $600 U.S. after the tech darling said Monday that two top executives were leaving the company.
The storm prompted many companies to postpone their quarterly earnings reports. But others, including Ford, Archer Daniels Midland and TD Ameritrade Holding Corp still issued their results so those stocks may be active Wednesday.
Early Wednesday, GM reported lower quarterly earnings of $1.8 billion U.S. on increased losses in Europe. But results topped forecasts, pushing shares of the car maker up almost 5%.
The price on the benchmark 10-year U.S. Treasury gained ground, lowering the yield to 1.70% from Friday’s 1.73%. Treasury prices and yields move in opposite directions.
Oil prices advanced $1.23 to $86.91 U.S. a barrel.
Gold prices gained $11.70 per ounce to $1,723.80 U.S.
