The Toronto stock market was lower Tuesday as positive economic data was trumped by uncertainty surrounding negotiations aimed at steering the U.S. economy away from a fiscal crisis at the end of next month.
The S&P/TSX Composite Index dipped 73.42 points to end the session at 12,111.63
The Canadian dollar ducked back 0.13 cents to 100.53 cents U.S.
Weakness in the resource sectors was offset somewhat by a gain of more than 8% in Bombardier Inc. shares to $3.37.
The transport giant announced what it calls the biggest sale of business aircraft its history — a firm order by charter company VistaJet for 56 Bombardier Global jets valued at $3.1 billion along with options for 86 others. The deal could potentially be worth up to $7.8 billion if all options are exercised.
The gold sector was down as Goldcorp Inc. faded $1.82, or 4.5%, to $38.96 while Agnico Eagle Mines fell $1.83, or 3.2%, to $55.06.
The energy sector was down as Cenovus Energy slipped 25 cents to $32.56 and Canadian Natural Resources was 48 cents lower to $27.90.
The mining sector was off with December copper unchanged at $3.54 U.S. a pound. First Quantum Minerals declined 33 cents to $21.13 and Major Drilling Group fell 37 cents, or nearly 4%, to $8.99 as the company reported lower earnings and revenue for the latest quarter.
The tech sector was also a weight as Research in Motion Ltd. stock moved down $1.19, or 10%, to $10.71 after soaring more than 25% over the previous six sessions.
RIM found momentum from a variety of analyst upgrades amid optimism about the launch of its new BlackBerry 10 operating system, which will be unveiled at a Jan. 30 event along with its new line of smartphones.
ON BAYSTREET
The TSX Venture Exchange settled back 19.58 points Tuesday to 1,206.17
All but two of the 14 Toronto subgroups were lower, weighed down mostly by gold, down 2.4%, information technology, sliding 2%, and materials, plummeting 1.7%.
The two gainers were industrials, up 0.8%, and utilities, eking up 0.1%.
ON WALLSTREET
U.S. stocks dropped Tuesday, as investors remain worried about the fiscal cliff battles in Washington.
The Dow Jones Industrials gave back 89.24 points to 12,878.10.
The S&P 500 moved 8.05 points lower to 1,398.24, and the Nasdaq Composite Index dumped 8.99 points to 2,967.79.
Packaged food maker ConAgra announced that it reached a deal to buy Ralcorp, the largest U.S. manufacturer of private label food, for $90 U.S. a share in cash -- a 28% premium from Monday's closing price.
Swedish telecommunications company Ericsson said it is suing South Korean electronics maker Samsung for patent infringement.
Shares of Facebook moved up 1% Tuesday after rising more than 8% Monday following the stock's upgrade by several analysts.
Facebook has rallied nearly 50% since touching a low of $17.55 U.S. in early September. The stock, currently around $26 U.S., is trading at its highest level since late July.
Shares of Green Mountain Coffee Roasters rose more than 2% ahead of the company's earnings release, due out after the closing bell.
Hewlett-Packard, still reeling from its $8.8-billion U.S. writedown tied to its $11-billion U.S. buyout of software firm Autonomy, dragged down the Dow, dropping more than 2%. HP is now facing lawsuits from investors related to the acquisition.
Now that Congress is back in session after the Thanksgiving break, lawmakers are under pressure to reach a deal with the White House before the end of the year in order to avoid falling over the fiscal cliff.
Euro-zone finance ministers and the International Monetary Fund announced late Monday they had reached an agreement that moves Greece closer to receiving a massive bailout payment. The deal includes lower interest rates for Greece, a debt buyback and more time for the debt-laden country to repay its rescue loans.
Yet Europe's woes continue to weigh on the U.S. The Organization for Economic Cooperation and Development warned early Tuesday that Europe's worsening economy next year will slow U.S. growth more than previously forecast.
Economically speaking, the Case-Shiller 20-city index showed that U.S. home prices vaulted 3.6% in the third quarter, up from one year ago and exceeding expectations of 3.1% -- the biggest increase since the second quarter of 2010 and triple the increase from the prior quarter. Home prices rose 2% in August.
On the domestic front, investors will continue to keep an eye on negotiations in Washington. With Congress back in session, lawmakers are under pressure to reach a deal with the White House before the end of the year in order to avoid falling over the fiscal cliff.
New orders of durable goods were flat in October, according to a U.S. Census Bureau report released Tuesday. Excluding transportation, new orders rose 1.5% in October.
The Conference Board released a better-than-expected reading on consumer confidence. November's figure is particularly important, as retailers gear up for the holiday shopping season.
Treasury prices gained strength, lowering yields to 1.64% from Monday’s 1.66%. Treasury prices and yields move in opposite directions.
Oil prices shed 53 cents to $87.19 U.S. a barrel.
Gold prices slid $8.60 an ounce to $1,741.00 U.S.
