The Toronto stock market was lower as disappointing economic data from China punished commodity prices and resource stocks.
The S&P/TSX composite index dropped 81.03 points to greet noon Friday at 12,740.80
The Canadian dollar reacquired 0.29 cents at 97.31 cents U.S.
Prices for oil and copper registered sharp declines as government data showed that Chinese manufacturing activity expanded at a slower rate in February than January.
The government-sponsored version of the manufacturing Purchasing Managers’ Index came in at 50.1 for February, only marginally ahead of the 50-point threshold that signals an expansion. Economists had looked for a reading of 50.5.
The base metals sector declined, while May copper on the Nymex fell four cents to $3.51 U.S. a pound. China is the world’s biggest consumer of the metal.
The consumer discretionary segment headed higher as shares in automaker Magna International rose $2.07 to $56.92 after it reported stronger than expected fourth-quarter results, raised its production outlook for 2013 and announced a dividend increase.
In other earnings news, after the close Thursday, National Bank of Canada reported adjusted net income of $2.02 per diluted share for the first quarter of fiscal 2013, beating analyst estimates by a penny. Total revenue for the quarter, however, was $1.24 billion, mostly flat compared to the year earlier period and below analyst expectations of $1.29 billion. Its shares edged up a penny to $78.57.
And toymaker Mega Brands Inc. posted quarterly earnings of $4 million U.S., up from $200,000 a year earlier while sales jumped 18% to $127.5 million U.S.
There is relatively little analyst coverage of Mega Brands but it appears the company’s sales were better than expected and profit missed the mark. But its shares gained 58 cents to $12.37.
On the economic front, Statistics Canada reported this morning that economic growth is still a good-news-bad-news story in this country. The agency said real gross domestic product edged up 0.2% in the fourth quarter of 2012, similar to the gain in the third quarter. On a monthly basis, however, real gross domestic product by industry declined 0.2% in December.
ON BAYSTREET
The TSX Venture Exchange slipped 11.11 points to 1,122.25
ON WALLSTREET
U.S. stocks pared earlier losses after a report showed that the nation's manufacturing activity picked up more than expected in February.
The Dow regained 47.79 points to break for lunch at 14,102.30.
The S&P 500 index moved higher by 0.70 points to 1,515.38. The tech-heavy NASDAQ Composite prospered 6.16 points to 3,166.34.
On Capitol Hill, meanwhile, assuming that no last-minute deal is reached, $85 billion U.S. in automatic spending cuts will go into effect Friday, although it may be weeks or months before that pain is felt.
In corporate news Friday, Best Buy's stock was higher after the electronics retailer reported its quarterly revenue rose slightly year-to-year, despite the closure of 49 stores.
Best Buy also announced that founder Dick Schulze will not buy out the retailer. Schulze, who owns about 20%of Best Buy's shares, was leading a group that wanted to take the company private. The company had given him until Thursday to present a qualified offer, but CEO Hubert Joly said the deadline passed without an offer.
Groupon shares jumped after the daily deals site announced that embattled CEO Andrew Mason would be replaced.
Gap shares edged up following fourth-quarter earnings Thursday that beat expectations.
Shares of Salesforce.com gained following strong earnings announced after the bell.
Economically speaking, the U.S. Commerce Department reported that personal income fell 3.6% in January, which was the steepest month-to-month drop in 20 years. Personal income was expected to have dropped 2.4%, according to a Briefing.com consensus of economist forecasts. Personal spending notched up 0.2%, as expected.
The Institute for Supply Management's manufacturing index rose to 54.2, a surprise improvement from January's 53.1 and the best reading since June 2011.
In other economic news, the University of Michigan's final edition of consumer sentiment for February came in better than expected at 77.6. A government report showed that construction spending declined 2.1% in January.
Prices on the 10-year U.S. Treasury gained ground, lowering yields to 1.85% from Thursday’s 1.89%. Treasury prices and yields move in opposite directions.
Oil prices slipped $1.64 to $90.41 U.S. a barrel.
Gold prices fell four dollars to $1,574.10 U.S. an ounce.
