The Toronto stock market was higher Tuesday amid rising prices for oil and metals and disappointing earnings from pipeline giant TransCanada Corporation
The S&P/TSX composite index was higher by 56.27 points to greet noon Tuesday at 12,804.42
The Canadian dollar eked higher by 0.15 cents to 99.68 cents U.S., as traders took in a statement by the G7 group of leading industrialized countries, including Canada, which affirmed their commitment to exchange rates determined by markets and not government policy.
TransCanada Corp., currently seeking U.S. approval for the Keystone XL pipeline which would carry oilsands crude from Alberta to Texas, reported that its net income fell to $306 million or 43 cents per share. Its comparable earnings, which exclude most unusual items, declined to $318 million or 45 cents per share.
Analysts had been expecting 51 cents per share of net earnings and 49 cents per share of adjusted earnings.
TransCanada also said its quarterly dividend will rise by two cents per share to 46 cents for the quarter, an increase of 5% and its shares slipped 53 cents to $47.72.
It also said that it expects the Keystone XL pipeline to be in service in late 2014 or early 2015.
Canadian Natural Resources climbed 68 cents to $31.19.
A U.S. agency has given the final approval required for the acquisition of Calgary-based Nexen Inc. by CNOOC, one of China’s largest energy companies.
The $15.1-billion U.S. friendly takeover had broad implications in Canada and elsewhere, due to Nexen’s extensive holdings in Alberta’s oilsands, Gulf of Mexico and North Sea. The company says it now expects the deal to close this month. Nexen shares gained 58 cents to $27.51.
The tech sector was up with CGI Group up 58 cents to $28.40.
The base metals sector was ahead while March copper in New York moved up two cents to $3.74 U.S. a pound. Teck Resources advanced 49 cents to $33.78.
The gold sector climbed as April gold bullion on the Nymex shed early losses and was unchanged at US$1,649.10 an ounce. Endeavour Mining jumped seven cents to $2.05 and Yamana Gold advanced 29 cents to $16.06.
Novagold Resources Inc. said Tuesday that the spinoff of its copper assets last year and other factors resulted in a $67.6-million net profit for the 2012 financial year, or about nine cents per share. The Vancouver-based company, which is in the development phase and not producing sales revenue, had $253 million in cash and equivalents when the year ended Nov. 30 and its shares edged up seven cents to $4.44.
Over the rest of the week, traders will take in reports from resource giants including Talisman Energy, Cenovus Energy, gas giant EnCana Corp. and Barrick Gold. Outside of the resource sector, Sun Life Financial, and telecoms Telus Corp. and Rogers Communications will also hand in results.
ON BAYSTREET
The TSX Venture Exchange acquired 1.25 points to 1,197.45
All but two of the 14 Toronto subgroups were higher by noon, led by energy issues, vaulting 1.3%, industrials, chugging 0.9% higher, and the metals and mining, strengthening by 0.8%.
The two laggard were utilities, slipping 0.4%, and health-care, fading but 0.04%.
ON WALLSTREET
U.S. stocks edged higher Tuesday, but the gains were slim as investors digested another round of earnings reports and ahead of President Obama's State of the Union address in the evening.
The Dow Jones Industrial Average tacked on 34.20 points to break for lunch at 14.005.40
The S&P 500 index crawled up 1.70 points to 1,518.71. The tech-heavy NASDAQ Composite dipped 3.77 points to 3,188.42.
More than 350 companies in the S&P 500 had reported results for the fourth quarter, with 70% beating earnings forecasts and 66% topping revenue estimates, according to Thomson Reuters.
Markets have had a good run so far in 2013. The Dow and S&P 500 are both up nearly 7% and still within range of their all-time highs, while the NASDAQ has gained nearly 6%.
Barclays posted a drop in profit and announced that it is cutting 3,700 jobs. Shares of the British bank spiked almost 8%.
Shares of McGraw-Hill, the owner of rating agency Standard & Poor's, edged lower after the company reported a rise in revenue and logged quarterly earnings per share that were in line with expectations.
Meanwhile, Coca-Cola declined after reporting earnings that slightly topped expectations, while Michael Kors shares jumped 10% after delivering results that blew past forecasts.
At 2 p.m. ET Tuesday, the U.S. Treasury Department will release its monthly budget data.
Prices on the 10-year U.S. Treasury fell back, raising yields to 1.98% from Monday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices grew 27 cents to $97.70 U.S. a barrel.
Gold prices dropped 20 cents to $1,648.90 U.S. an ounce.
