The Toronto stock market was lower for a third session Wednesday amid growing pessimism over the pace of budget negotiations aimed at heading off a fiscal crisis in the United States.
The S&P/TSX Composite Index fell 20.17 points to greet noon Wednesday at 12,091.46
The Canadian dollar tacked on 0.14 cents to 100.71 cents U.S.
In the tech sector, Research In Motion Ltd. shares were under further selling pressure after it lost a contract dispute over the use of Nokia patents.
A Swedish arbitrator has ruled that RIM has breached a contract between the companies and is not entitled to manufacture or sell wireless local access network products without first reaching a royalties agreement with Nokia. RIM stock was down 25 cents or 2.34% to $10.45.
Elsewhere in the tech sector, CGI Group Inc. posted a net loss of just under $170 million or 58 cents per diluted share in the latest quarter, compared with a profit of $69.6 million or 26 cents per share in the year-earlier period.
Revenue rose to $1.61 billion from just over $1 billion in the fiscal 2011 quarter. Ex-items, the company said it would have had net earnings of $100 million or 37 cents per share, down from 39 cents per share a year earlier. CGI shares slipped 16 cents to $23.89.
Among energy plays, Suncor Energy fell 46 cents to $32.43.
Imperial Oil shares declined 20 cents to $42.31 as it said it will invest $1.55 billion to acquire a half interest in the assets of Celtic Exploration Ltd. The Calgary-based company is currently in the process of being fully acquired by Imperial parent ExxonMobil Canada Ltd., which announced a $3.1-billion bid for Celtic in October. Celtic shares were unchanged at $26.
The mining sector lost ground as December copper declined five cents to $3.49 U.S. a pound. First Quantum Minerals shed 30 cents to $20.84.
The gold sector was down as Goldcorp Inc. faded 63 cents to $38.32.
ON BAYSTREET
The TSX Venture Exchange dipped 2.20 points to 1,203.97
All but three of the 14 Toronto subgroups were lower by noon. Health-care stocks slid 1.5%, while utilities doffed 1.1% and energy docked 0.5%.
The two gainers were consumer staples, up 0.2%, and financials, inching up 0.04%. Information technology issues were flat at noon hour.
ON WALLSTREET
U.S. stocks pushed higher Wednesday, but gains were modest as investors remain on edge over fiscal cliff negotiations.
The Dow Jones Industrials advanced 75.07 points to 12,953.20. The index was supported by shares of HP and American Express Co, which both gained more than 1%.
The S&P 500 moved 3.07 points higher to 1,402.01 and the Nasdaq Composite Index reversed course and gained 10.72 points to 2,978.51.
In corporate news, big box retailer Costco announced a special dividend, which will pay shareholders a total of $3 billion U.S. on Dec. 18. Shares rose 4%.
Costco becomes the latest company to move dividend payments to calendar year 2012 as taxes on payments to shareholders are set to rise on Jan. 1, due to the fiscal cliff. Costco rival Wal-Mart is also speeding up those payments.
American Eagle shares were up 7% after the apparel retailer reported strong quarterly results. Rival Aeropostale will report quarterly earnings and sales data after the closing bell. Shares of troubled retailer JC Penney, which have been heavily shorted, rose 4%.
Investors were rattled late Tuesday after Senate Majority Leader Harry Reid said lawmakers have made little progress in negotiations to avoid a slew of year-end tax increases and spending cuts.
Failing to resolve the fiscal cliff before the Jan. 1 deadline could shock the economy and send it back into recession, which has plagued the market with uncertainty. Many expect the stocks to remain volatile for the rest of the year.
On the economic front, the government said October new home sales fell 0.3% from the month before, although sales were up 17.2% versus October of last year.
The Federal Reserve will release the October edition of its Beige Book, a survey of regional economies, at 2 p.m. ET.
Treasury prices gained ground, driving yields down to 1.62% from Tuesday’s 1.64%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.26 to $85.92 U.S. a barrel.
Gold prices plummeted $25.60 an ounce to $1,717 U.S.
