The Toronto stock market was slightly higher Tuesday following a sharp advance the previous session as traders looked to the euro-zone after France lost its AAA credit rating.
The S&P/TSX Composite Index ended Tuesday ahead a mere 5.88 points to 12,046.28
The Canadian dollar slid 0.09 to 100.28 cents U.S.
Commodity prices slipped following big gains Monday with December copper off one cent at $3.52 U.S. a pound following an eight-cent jump Monday. The base metals sector declined as Thompson Creek Metals dropped 14 cents to $2.68 while Turquoise Hill Resources dropped 21 cents, or 2.7%, to $7.46.
In the gold sect or, Goldcorp Inc. was up three cents to $40.64 while Agnico-Eagle Mines faded 84 cents to $54.36.
Oil prices fell Tuesday. Prices had run up sharply over the previous two sessions on worries that fighting between Israel and Hamas could spread, jeopardizing oil shipments from the Mideast. The energy sector dipped as Cenovus Energy gave back 37 cents to $32.62.
In the tech sector, Research In Motion Ltd. ahead 11 cents to $9.70 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.
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 Nov. 26, or this coming Monday.
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 90 cents, or 18.4%, 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 7.76 points to 1,242.30
All but three of the 14 Toronto subgroups were lower by the end of the session. Gold and consumer staples were down 0.7% each, while utilities dipped 0.6%.
The three gainers were financials, up 0.8%, while real-estate and health-care stocks advanced 0.2% each.
ON WALLSTREET
U.S. stocks were mixed Tuesday, led by a sharp selloff in Hewlett-Packard shares and renewed worries about Europe.
The Dow Jones Industrials went south 7.45 points to 12,788.50
The S&P 500 moved 0.93 points higher to 1,387.82, and the Nasdaq Composite Index picked up 0.61 points to 2,916.68
HP stole the spotlight early with a bombshell announcement: It's taking a $8.8 billion writedown on its purchase of British software firm Autonomy, after the company allegedly misrepresented its finances. Shares of HP, part of the Dow 30, dove 12%.
Stocks surged Monday as investors grew increasingly optimistic about lawmakers reaching a deal on the fiscal cliff. But comments from Federal Reserve Chairman Ben Bernanke offered little solace Tuesday, as he urged lawmakers to act quickly because "the stakes are high."
Moody’s Investors Service cited concerns over France’s prospects for economic growth and its exposure to Europe’s financial crisis in announcing its downgrade. S&P had also downgraded Europe’s second-biggest economy in January.
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. The company also cut its full-year outlook.
Krispy Kreme Doughnuts stock soared more than 23% following better-than-expected results reported after the closing bell Monday.
Green Mountain Coffee surged 2.6% after the company announced the appointment of a new CEO, effective December 3.
Shares of mining company Cliffs Natural Resources plummeted 11% after Goldman Sachs cut its rating on the stock and expressed concerns about the company's future expansion.
Euro-zone finance ministers met Tuesday to discuss the latest release of bailout funds for Greece, which the country needs in order to stave off default. They met 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.
The price on the benchmark 10-year U.S. Treasury fell a bit, lifting yields to 1.66% from Monday’s 1.61%. Treasury prices and yields move in opposite directions.
Oil prices subsided $2.21 to $87.07 U.S. a barrel.
Gold prices erased $7.20 an ounce to $1,727.20 U.S.
