Stocks in Canada’s biggest market were slightly lower Tuesday with buyers disinclined to do much following the previous session's sharp advance, which was spurred by hopes that a major fiscal crisis in the U.S. can be avoided.
The S&P/TSX Composite Index approached noon up 7.05 points to 12,047.45
The Canadian dollar slid 0.06 to 100.31 cents U.S.
Toronto and New York indexes racked up solid advances Monday as traders felt more optimistic that American politicians can come together to agree on a budget deal by the end of next month.
Commodity prices slipped following big gains Monday with December copper unchanged at $3.53 U.S. a pound following an eight-cent jump Monday. The base metals sector declined as Thompson Creek Metals dropped 16 cents to $2.66 while Turquoise Hill Resources dropped 12 cents to $7.55.
The gold sector was also off with Iamgold was down 15 cents to $11.68 while Agnico-Eagle Mines faded 49 cents to $54.71.
The energy sector was lower and Cenovus Energy gave back 59 cents to $32.40 and Imperial Oil shed 27 cents to $43.53.
The tech sector led advances with Research In Motion Ltd. ahead 33 cents to $9.92 after Jeffries tech analyst Peter Misek upgraded the stock from underperform to hold. He said he was surprised by the strongly positive initial feedback on RIM's new BB10 handset from carriers. The BB10 is expected to be launched Jan. 30.
Elsewhere on the corporate front, Canada’s oldest company, Hudson's Bay Co., said Monday its return to the public stock market values the retail company at $17 a share, or about $2 billion in total. HBC said it plans to sell a total of 21 million shares, about one-fifth of the company’s stock, raising about $365 million through an initial public offering.
Share trading under the symbol "HBC" is expected to begin on the closing of the offering, expected Monday, Nov. 26.
Canadian Satellite Radio Holdings Inc., the parent company of Sirius XM Canada Inc., said Tuesday it will pay a special cash dividend of 8.25 cents per class A subordinate voting share and 2.75 cents per class B voting share. The broadcaster will also pay begin paying a quarterly dividend of the same amount and its shares surged 18.37% to $5.80.
On the economic slate, Statistics Canada revealed this morning that things are not well in the wholesale trade. The agency reported that wholesale sales fell 1.4% to $48.8 billion in September, the third drop in four months.
ON BAYSTREET
The TSX Venture Exchange faded 1.18 points to 1,248.78
Eight of the 14 Toronto subgroups were lower, weighed down mostly by consumer staples, off 0.6%, utilities, down 0.4%, and industrials, sliding 0.3%.
The half-dozen gainers were propelled by information technology, up 0.9%, financials, up 0.5%, and global base metals, gaining 0.2%
ON WALLSTREET
Hewlett-Packard stole the stock market spotlight Tuesday, but it wasn't good news. Early Tuesday, HP told the investment community it was taking a $8.8-billion U.S. writedown on its purchase of British software firm Autonomy, after the company allegedly misrepresented its finances
But stripping out the PC maker's dismal announcement, stocks were little changed as investors backed off a recent rally and turned their attention back to Europe's continued sovereign debt worries.
The Dow Jones Industrials had moved higher by 1.96 points at noon ET to 12,797.90
The S&P 500 moved 0.59 points higher to 1,387.48, and the Nasdaq Composite Index picked up 1.42 points to 2,917.42
Shares of Best Buy dropped more than 13% after the electronics retailer continued to show signs of struggling as it reported earnings and sales that missed forecasts. Best Buy also cut its outlook.
Krispy Kreme Doughnuts stock jumped nearly 19% following better-than-expected results reported after the closing bell Monday.
Green Mountain Coffee surged 7% after the company announced the appointment of a new CEO, effective December 3.
Euro-zone finance ministers were meeting Tuesday to discuss the latest release of bailout funds for Greece, which the country needs in order to stave off default. They meet as Moody's downgraded France's credit rating, stripping the country of its coveted AAA rating due to worries about economic weakness.
In other overseas news, escalating violence in the Middle East between Israelis and Palestinians continues to be a global concern. Oil prices, which had been ticking up amid growing worries about a possible ground war in Gaza, turned lower.
Economically speaking, news was brighter in the U.S., with some signs of a recovering housing market. The Census Bureau reported Tuesday morning that housing starts rose to the highest level in four years. But housing permits declined slightly to an annual rate of 866,000 last month, less than the 870,000 expected.
Federal Reserve Chairman Ben Bernanke was to speak at the Economic Club of New York over noon hour.
The price on the benchmark 10-year U.S. Treasury fell a bit, lifting yields to 1.65% from Monday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices subsided $1.83 to $87.45 U.S. a barrel.
Gold prices erased $3.30 an ounce to $1,731.10 U.S.
