Markets in Toronto fought their way without success toward the breakeven points Thursday, following a triple-digit loss in the wake of President Obama’s re-election in the U.S.
The S&P/TSX composite remained behind by noon, 22.10 points to 12,208.49
The Canadian dollar fell back 0.24 cents to 100.13 cents U.S.
On a heavy earnings day for Canadian investors, Manulife Financial Corp. on Thursday said it had a $227-million net loss in the third quarter, after absorbing a $1-billion charge related to the life insurance company’s annual review of actuarial assumptions. Manulife says its loss was equal to 14 cents per share under standard accounting. Midday, Manulife shares were down 22 cents to $11.78
On Wednesday after the market close, Sun Life Financial Inc. said it earned $383 million, or 64 cents per share, for the latest quarter, compared with a loss of $621 million, or $1.07 per share, a year ago.
Operating net income, which excludes items that the company believes are not ongoing, was $401 million, or 68 cents per share, beating expectations of 63 cents. Sun Life galloped ahead $1.08 a share, or 4.4%, to $25.45
Air Canada said Thursday it had $429 million of net income in the third quarter or $1.54 per diluted share, compared with a net loss of $124 million or 45 cents per diluted share for the same period last year.
Air Canada’s adjusted net income was 82 cents per share, up from 68 cents per share in the third quarter of 2011 and well above expectations of 70 cents. The airline’s shares picked up four cents to $1.93
Auto parts giant Magna International Inc. is reporting a jump in third-quarter net income to $390 million U.S., or $1.66 per diluted share, up from $102 million U.S., or 42 cents a share a year ago. Magna posted sales of $7.4 billion U.S., up from $6.97 billion U.S.in the year-ago quarter.
Magna also announced that Frank Stronach is resigning from the board of the auto parts giant he founded in his garage in 1957. Magna shares dipped 14 cents by noon to $44.31.
In the energy sector, Canadian Natural Resources Ltd. had $360 million of net income in the third quarter or 33 cents per share, down from $753 million or 68 cents per share a year earlier. Canadian Natural Resources shares faded $1.01, or 3.5%, to $27.94
It’s also been a busy so far on the macroeconomic front, with Statistics Canada reporting our trade shrank with the rest of the world.
The nation’s number cruncher said Canada's merchandise exports rose 1.9% and imports were unchanged in September. As a result, Canada's trade deficit with the world narrowed from $1.5 billion in August to $826 million in September.
On the housing front, the New Housing Price Index rose 0.2% in September, following a similar increase in August.
However, figures released by Canada Mortgage and Housing Corporation showed that the seasonally adjusted annual rate of housing starts fell to 204,100 units in October from 224,000 units in September, confounding experts who predicted a figure of 212,000 last month.
ON BAYSTREET
The TSX Venture Exchange remained positive 5.54 points to 1,296.25
Nine of the 14 Toronto subgroups were lower by lunch time, weighed down mostly by health-care, 2% less robust, energy, down 0.9%, while utilities dipped 0.7%.
The five gainers were led north by gold, up 0.9%, while information technology ticked higher 0.6%, and materials gained 0.5%.
ON WALLSTREET
U.S. stocks drifted between small gains and losses Thursday, as investors ventured back into the market a day after all three major indexes plunged more than 2%.
The Dow Jones Industrials dipped 42.69 points, after an early morning gain, to greet noon ET at 12,890.
The S&P 500 moved down 3.87 to 1,390.66, and the Nasdaq Composite Index eased 15.58 points to 2,921.71, after both indexes suffered 2% losses, their worst one-day dip since June.
Financial stocks, which led the post-election decline, regained some ground. Shares of Bank of America and JPMorgan Chase were the best performers on the Dow.
Apple shares fell deeper into bear market territory -- down 20% from their all-time-high of $705 hit in mid-September. The widely-held stock can weigh heavily on the Nasdaq and S&P 500 indexes.
Following President Obama's re-election Tuesday night, attention has shifted to how lawmakers will address the looming fiscal cliff that threatens to throw the country back into a recession if left untouched.
On the corporate front, Wendy's reported weaker-than-expected earnings for the third quarter. But the fast-food chain said same-store sales, a key measure of growth, increased for a sixth quarter in a row, sending shares up 4%. McDonald's shares fell after the fast food chain said same-store sales fell 1.8% in October.
On the economic slate, the U.S. government said 355,000 Americans filed for first-time jobless claims in latest week, better than the expectations for 377,000.
The trade deficit for September narrowed to $41.5 billion U.S. Analysts were expecting the gap to widen to $45.4 billion U.S.
The price on the benchmark 10-year U.S. Treasury faded, lifting the yield to 1.68% from 1.63% late Wednesday. Treasury prices and yields move in opposite directions.
Oil prices gained 67 cents at $85.11 U.S. a barrel.
Gold prices acquired $9.30 per ounce to $1,723.30 U.S.
