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 40.87 points to close Tuesday at 12,789.02
The Canadian dollar moved higher by 0.22 cents to 99.75 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 and its shares slipped 62 cents to $47.63.
It also said that it expects the Keystone XL pipeline to be in service in late 2014 or early 2015.
The energy sector dominated as Canadian Natural Resources climbed $1.04 to $31.55.
What’s more, 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. Nexen shares gained 56 cents to $27.49.
Industrials provided lift to the TSX as WestJet climbed 54 cents to $21.78 a day after the carrier announced it is boosting its base in Western Canada by launching its Encore regional service in June to British Columbia’s energy region using the airline’s first Bombardier turboprops.
Bombardier shares were unchanged at $4.09 as the General Aviation Manufacturers Association said the transport giant retained its position as the world’s largest business jet manufacturer in 2012. The Montreal-based company kept the title despite an 11% drop in the value of its global deliveries in the fourth quarter.
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 70 cents to $33.99.
The gold sector climbed as Endeavour Mining jumped five cents to $2.03 and Yamana Gold advanced 18 cents to $15.95.
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 and its shares edged up seven cents to $4.44.
The tech sector was flat with CGI Group up 57 cents to $28.39 while BlackBerry gave back 51 cents to $15.25.
ON BAYSTREET
The TSX Venture Exchange acquired 2.74 points to 1,198.94
All but three of the 14 Toronto subgroups were positive to end Tuesday, led by industrials, ahead 1.1%, while energy burst forward 1% and the metals and mining group gained 0.6%.
The three laggards were utilities, down 0.8%, information technology, stumbling 0.3%, and health-care, down 0.1%.
ON WALLSTREET
U.S. stocks were mixed Tuesday, as investors digested more earnings reports and looked ahead to President Barack Obama's State of the Union address in the evening.
The Dow Jones Industrial Average gained 47.46 points to end at 14.018.70
While the Dow's move up was modest, it was enough to push the blue-chip index back above 14,000, and not far from its all-time high of 14,198.10 reached in October 2007.
The S&P 500 index crawled up 2.20 points to 1,519.21. The tech-heavy NASDAQ Composite dipped 5.51 points to 3,186.49.
The tail end of earnings season continues to paint a fairly healthy picture of Corporate America.
But with little else to glom onto, investors aren't willing to place any big bets, especially after the strong run-up since the beginning of the year. The Dow and S&P 500 are both up nearly 7%, while the Nasdaq has gained nearly 6%.
On the corporate front, Avon Products shares jumped 20%, leading the gains on the S&P 500, after the beautify and personal products company posted better-than-expected earnings.
Fossil shares climbed almost 5%, making it the biggest gainer on the Nasdaq 100, after the retailer beat earnings and revenue forecasts, thanks to strong watch demand.
Barclays posted a drop in profit and announced that it is cutting 3,700 jobs. Shares of the British bank spiked 8%.
Shares of McGraw-Hill, the owner of rating agency Standard & Poor's, edged up 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.
Apple shares slipped after CEO Tim Cook slammed activist shareholder David Einhorn, calling the hedge fund manager's lawsuit asking Apple to change its plans on preferred stock a "silly sideshow." Though Cook dismissed the lawsuit, Apple is considering Einhorn's proposal.
In economic news, the U.S. Treasury Department posted a budget surplus of almost $2.9 billion for January. Economists were expecting a $2-billion U.S. deficit for the month.
Later Tuesday, President Obama will deliver the first State of the Union address of his second term. He is expected to focus on the economy, jobs and the budget, while also speaking about gun control and immigration.
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 inched up three cents to $97.46 U.S. a barrel.
Gold prices gained $2.20 to $1,651.30 U.S. an ounce.
