The Toronto stock market closed lower Tuesday as falling oil and gold prices punished resource stocks and traders awaited the next development in the U.S. fiscal standoff between Republicans and Democrats.
The S&P/TSX composite index fell 32.56 points to 12,137.18
The Canadian dollar was up 0.17 of a cent to 100.68 cents U.S., after the Bank of Canada announced it is leaving its key interest rate unchanged at one per cent, a reflection of economic weakness across the globe.
Traders also took in quarterly and annual earnings from the Bank of Montreal that beat estimates.
BMO had a fourth-quarter profit of $1.08 billion, up 41% from a year ago.
The bank’s adjusted earnings amounted to $1.65 per share, beating estimates by 22 cents a share. The quarter brought Bank of Montreal’s total net income for the 2012 financial year to $4.19 billion, up 35% from last year and its shares added 34 cents to $59.63.
The energy sector was down as worries about economic weakness stemming from a worrisome U.S. manufacturing report released Monday sent oil prices lower Imperial Oil was down 52 cents to $42.31.
Canadian Natural Resources Ltd. fell 76 cents to $27.43 after it said it has set a 2013 capital budget of $6.9 billion, which is about $500 million more than the Calgary-based energy company’s capital spending this year.
The biggest increase is at CNQ’s Horizon oilsands mining project, which will see its budget rise to $2.55 billion next year from $1.68 billion in 2012.
The tech sector fell as CGI Group lost 35 cents to $22.97.
Celestica Inc. rose 11 cents to $7.35. The Toronto-based global manufacturing services company says it expects to pay $7.80 U.S. per share to buy back about 22.4 million shares, or about 12% of its outstanding stock. The buyback price was determined by a bidding process known as a modified Dutch auction.
The base metals group was off while March copper prices gave up a two-cent climb to close unchanged at $3.66 U.S. a pound. The metal had earlier benefited for a second day on a strong Chinese manufacturing report. China, the world’s second-biggest economy, is the largest consumer of the metal. Turquoise Hill Resources moved 19 cents lower to $7.16.
Telecoms were also weak as Telus Corp. fell 46 cents to $64.35.
Among gold plays, Goldcorp Inc. was ahead 56 cents to $37.85 while Iamgold faded 18 cents to $11.44.
Among stocks making big moves, shares in pipeline company ShawCor Ltd. tumbled 14% to $39.47, a day after it announced a strategic review revealed that an acceptable buyout offer is "highly unlikely" in the current market. However, it added that it will continue to review and consider a range of strategic alternatives, but said it could give no assurance any particular transaction would take place.
ON BAYSTREET
The TSX Venture Exchange shed 15.25 points to 1,192.75.
All but three of the 14 Toronto subgroups were lower on the day, weighed by energy, down 1.1%, information technology, off 0.7%, and real-estate, sliding 0.6%.
The three lone gainers were in health-care, up 0.9%, materials, up 0.2%, and global base metals gained 0.1%.
ON WALLSTREET
U.S. stocks finished the day slightly in the red as uncertainty over the ongoing political wrangling put investors on edge.
The Dow Jones Industrials was down 13.82 points to 12,951.78
The S&P 500 fell 2.41 points to 1,407.05 and the Nasdaq Composite Index dropped 5.51 points to 2,996.69
Coach, American Eagle and Carnival all announced revised dates Tuesday. After the market closed Monday, Oracle announced plans to make its second, third and fourth quarter dividend payments for fiscal year 2013 this month.
In other corporate news, shares of Big Lots jumped after the discount retailer posted a narrower loss than analysts had been expecting.
Home builder Toll Brothers reported fourth-quarter revenue that topped forecasts, sending shares higher.
MetroPCS shares slipped following reports that Sprint is not likely to make a counter offer to acquire the wireless carrier.
Netflix's stock finished strong after the company announced a high-profile deal with Walt Disney Studios. Starting with Disney's 2016 feature films, Netflix customers will be able to stream a catalog of titles from Disney and four of its subsidiaries: Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios and Disneynature. Shares of Netflix surged 14%.
Shares of Pandora rose in regular trading as investors geared up for the music streaming service's earnings release after the closing bell. The company wound up reporting earnings and sales that topped estimates, but shocked investors by forecasting a loss for its next quarter. The stock fell more than 20% in after hours trading.
President Obama outlined a proposal last week that called for $1.6 trillion U.S. in new taxes, among other things. Republicans issued a counter-proposal Monday that included tax reforms, changes to Medicare and other spending cuts worth $2.2 trillion U.S. over the next decade.
That plan was quickly dismissed by the White House, and the apparent deadlock is likely to set the tone for markets.
Treasury prices picked up ground, lowering yields on the 10-year note to 1.61% from Monday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices gave back 68 cents to $88.41 U.S. a barrel.
Gold prices capsized $22.20 an ounce to $1,698.30 U.S.
