The Toronto stock market opened with a whimper Thursday, amid bad tidings over European economies and a spate of earnings news
The S&P/TSX composite index dropped 22.02 points to open at 12,753.26
The Canadian dollar muscled higher 0.11 cents to 99.95 cents U.S.
The euro-zone reportedly slipped deeper into recession in the last quarter of 2012 after its largest economies, Germany and France, shrank markedly at the end of the year.
Barrick Gold reported a quarterly loss, after booking a $3.8-billion impairment charge to write down the value of its Lumwana copper asset. Even so, its shares were higher by 74 cents, or 2.3%, soon after the opening bell, to $32.46.
Cenovus Energy Inc reported a fourth-quarter operating loss as it wrote down the value of its natural gas assets in southeast Alberta, and said it expects more pressure on costs this year due to higher fuel and power prices. Cenovus shares faded 16 cents to $32.44
Encana Corp, Canada's largest natural gas producer, posted a 28% rise in fourth-quarter operating profit, helped by its hedging program. Encana shares caved 84 cents, or 4.3%, to $18.64.
Agnico-Eagle Mines Ltd. produced a record one million ounces of gold in 2012, but its fourth-quarter adjusted earnings fell short of analysts' expectations as higher costs squeezed margins. Agnico shares increased in price 91 cents to $45.06
Rival Kinross Gold Corp. reported on Wednesday a fourth-quarter net loss as an impairment charge related primarily to its Tasiast gold mine in West Africa outweighed a boost in revenue. Kinross shares raced ahead 37 cents, or 4.7%, to $8.28
Oil and gas whiz Niko Resources Ltd. doubled its third-quarter loss due to declining gas output from the Krishna Godavari D6 block off India's east coast. Niko shares gave back 30 cents, or 3.3%, to $8.75.
Rival Penn West Petroleum Ltd. posted a smaller fourth-quarter loss on gains from asset sales. Penn West shares took on 29 cents, or 2.8%, to $10.74 each.
ON BAYSTREET
The TSX Venture Exchange shed 3.04 points to 1,201.24
All but four of the 14 Toronto subgroups were lower in the first hour of trading, weighed down mostly by health-care and energy issues, each off 0.8%, while information technology stocks suffered 0.5%.
The three gainers were led by gold, up 1%, materials, advancing 0.6%, and global base metals, eking ahead 0.2%. Consumer discretionary stocks were flat soon after the opening bell.
ON WALLSTREET
U.S. stocks opened lower Thursday, as investors digested better-than-expected jobless claims, the latest round of quarterly financial results and two big merger deals.
The Dow Jones Industrial Average fell 10.78 points to begin Thursday trading at 13,972.10
The S&P 500 index sagged 2.05 points to 1,518.28. The tech-heavy NASDAQ Composite slid 7.08 points to 3,189.79
After a strong start to the year, it's not unusual for stocks to take a breather. Even with the recent slips and slides, the Dow is within 1.7% of its all-time high, hit in October 2007, and the S&P 500 is about 4% shy of its record high, also set in October 2007. And all three indexes are up between 6% and 8% for the year.
Investors continue to pore over economic and corporate reports but have yet to find a big catalyst to start buying again.
In earnings news, General Motors released quarterly results that missed expectations, but shares edged higher. PepsiCo shares also gained ground after the beverage maker logged better-than-expected earnings.
Cisco shares declined 2%, dragging on the Dow, after Cisco CEO John Chambers took a cautious tone with his outlook as the company reported earnings roughly in line with forecasts. Shares of Mondelez sank more than 4% after the food producer logged earnings that missed expectations after the close on Wednesday.
As of Wednesday, 65% of the companies in the S&P 500 that had reported fourth-quarter earnings came in ahead of analysts' expectations, according to S&P Capital IQ. But the bulk of companies that have issued guidance for the first quarter had a negative outlook.
Thursday also brought a slew of merger news.
Warren Buffett's Berkshire Hathaway and 3G Capital have agreed to buy Heinz for $28 billion U.S. Shares of the ketchup-maker spiked 20%.
Shares of other food companies also gained traction. Kraft Foods and General Mills gained more than 1% and Campbell Soup added 2.7%.
US Airways and American Airlines parent officially announced an $11-billion U.S. deal to create the world's largest airline. Shares of US Airways dipped.
Shares of Constellation Brands surged 30% after Anheuser-Busch InBev agreed to give up key assets in an effort to address antitrust issues related to is proposed takeover of Mexican brewer Grupo Modelo.
Early Thursday, the U.S. Labor Department reported that the number of Americans filing for first-time unemployment claims fell by 27,000 to 341,000 in the latest week. Economists were expecting 365,000 claims.
Prices on the 10-year U.S. Treasury sagged a bit, lifting yields to 2.03% from Wednesday’s 2.02%. Treasury prices and yields move in opposite directions.
Oil prices hiked 52 cents to $97.53 U.S. a barrel.
Gold prices regained $1.30 to $1,646.40 U.S. an ounce.
