North American stocks opened on a sour note, but quickly bounced off their lows by noon. Worries about the pending end-of-year tax increases and spending cuts in the U.S., as well as the lack of progress in resolving the euro zone debt crisis, is denting sentiment once again today.
The S&P/TSX composite pulled into positive territory 6.49 points by midday to 12,197.95.
The Canadian dollar is also under pressure this morning, as currency players stand by to see what Canadian Finance Minister Jim Flaherty has to say in his fiscal update later today. He may project a deficit that's a little higher than the original budget forecast and is likely to discuss the risks of the "fiscal cliff" on the Canadian economy. The loonie is trading below parity, down about one-sixth of a cent to 99.83 cents U.S.
Among stocks of note early this afternoon, Quebecor net income was down to $18.6-million or 30 cents per share compared to $26.1-million or 41 cents per share in the same period last year. Its shares were unchanged at noon at $35.25.
Sears Canada Inc. reduced its net loss in the third quarter to $21.9-million, about half what the department store chain racked up last year. But its shares are down 7.9% at noon time to $11.49
Shoppers Drug Mart its third-quarter net profit slip as it took a $13-million restructuring charge. Its adjusted net earnings per share were 81 cents, in line with analyst estimates. Shares are up 3% as of midday to $42.36
BHP Billiton has agreed to sell its diamonds business to Canadian diamond miner and retailer Harry Winston Diamond Ltd. for $500 million U.S. The assets include BHP’s interests in the EKATI Diamond Mine and its diamonds marketing operations. Harry Winston shares are down 2.5% in early afternoon trading to $13.12.
No major Canadian economic data was scheduled for release Tuesday.
ON BAYSTREET
The TSX Venture Exchange dipped 7.67 points to 1,297.99
Eight of the 14 Toronto subgroups had fought their way into the green by noon. Health-care stocks gained 0.8%, while consumer staples cleared breakeven by 0.6% and industrials were 0.4% to the good.
Information technology was the worst off of the half-dozen losing groups, falling 1%, while metals and mining stocks dipped 0.7% and utilities scaled back 0.4%.
ON WALLSTREET
U.S. stocks held modest gains Tuesday, as investors question whether lawmakers will cut a deal to avoid the fiscal cliff.
The Dow Jones Industrials had improved 34.91 points by noon to 12,850
The S&P 500 nipped up 5.06 points to 1,385.09, and the Nasdaq Composite Index shrank 3.15 points to 2,901.11
Lawmakers are trying to strike a deal that prevents the onset of sharp spending cuts and tax increases in January. President Obama plans to meet with union leaders on Tuesday, a number of business leaders on Wednesday and then Congressional leaders on Friday.
Windows chief Steven Sinofsky, heir apparent to Microsoft CEO Steve Ballmer, left the company late Monday. Sinofsky had been at Microsoft since 1989, trusted with overseeing many of the company's core products -- including Office and the recent Windows 8 debut.
Shares of Dow component Home Depot rose after the company beat sales and earnings forecasts. The nation's largest homebuilding supply retailer raised its guidance for the current quarter, and said it's seeing a beginning in the "healing of the housing market."
Dick's Sporting Goods beat analyst expectations on both income and revenue and raised its guidance for fourth-quarter sales. MIchael Kors Holdings reported quarterly earnings and revenue that beat expectations.
Meanwhile, Monster Beverage shares were up 2% after the company announced plans to repurchase up to $250 million U.S. worth of its own common stock.
Saks reported earnings in line with forecasts but fell short on revenue. The retailer lowered its sales guidance for the fourth quarter, citing disruptions from Hurricane Sandy.
Economically speaking, at 2 p.m. ET, the Treasury Budget is expected to show a deficit of $113 billion U.S. for October, according to a survey of analysts
The price on the benchmark 10-year U.S. Treasury gained ground early Tuesday, lowering yields to 1.59% from Friday’s 1.61%. Treasury prices and yields move in opposite directions. Treasury markets were closed Monday for Veterans’ Day
Oil prices surrendered 19 cents to $85.42 U.S. a barrel.
Gold prices dropped $2.40 an ounce to $1,728.70 U.S.
