The Toronto stock market weakened on Thursday as worries over a fast-approaching deadline for the debt woes in Cyprus overshadowed economic data.
The S&P TSX index remained negative 26.86 points to greet noon at 12,799.69
The Canadian dollar improved 0.18 cents to 97.67 cents U.S.
In corporate developments, Lululemon Athletica Inc. posted a $109-million U.S. profit in the fourth quarter, coming in slightly ahead of analyst estimates. But the company also said that the recall of its black Luon pants earlier this week will cut into sales and profit — pushing its outlook for the current quarter below forecasts.
The company expects to lose between $12 million and $17 million of revenue in the first quarter because of the recall and earnings will be reduced by 11 to 12 cents per share. Lululemon shares were 92 cents higher to $66.29.
Shares of Yellow Media Group were lower after it said its long-time chief executive Marc Tellier would be leaving by this summer but would remain to assist with a transition period. The shares were off 17 cents to $10.30.
Harry Winston Diamond Corp. posted a gain after it said it has received all the regulatory approvals required for the sale of its jewelry and watch division to the Swatch Group. Shares were up 25 cents to $17.37.
Today, Finance Minister Jim Flaherty will unveil the latest federal budget, which is expected to shuffle government spending priorities without adding any new money.
On the economic slate, Statistics Canada reported this morning that retail sales rose 1% to $38.9 billion in January, partially offsetting the decline in December, led by higher sales at motor vehicle and parts dealers.
What’s more, those of us receiving regular Employment Insurance benefits fell in January for the third consecutive month, down 8,500, or 1.6%, to 531,100. Compared with the previous January, the number of beneficiaries was down 8.8%.
ON BAYSTREET
The TSX Venture Exchange slid 0.97 points to 1,105.
In all, nine of the 14 Toronto subgroups were lower midday. Industrials sank 0.7%, metals and mining were lower 0.6% and real-estate issues were 0.5% to the bad.
The five gainers were led by gold, up 1.6%, materials, surging 0.6%, and health-care better by 0.3%.
ON WALLSTREET
U.S. stocks moved lower Thursday, as investors considered a big batch of economic news and uncertainty over Cyprus.
The Dow Jones Industrials was still lower by 44.02 points at noon ET to 14,467.70
The S&P 500 index was 4.85 points lower to 1,553.86. The tech-heavy NASDAQ Composite dropped 21.90 points to 3,232.29.
Oracle was the biggest laggard in both the S&P 500 and NASDAQ 100. Shares of the software giant tumbled almost 10% after its third-quarter sales fell short of forecasts.
Just days after recalling see-through yoga pants, lululemon athletica reported earnings and sales that squeaked past estimates and said it was working closely with manufacturers to resolve the yoga pant issue. The company also said its current quarter and full-year earnings would come in below analysts' forecasts.
KB Home shares edged higher after the homebuilder reported that sales surged 59% in the first quarter, as more homes were delivered and prices increased.
Shares of Scholastic sank after the children's book publisher lowered its forecast for the year a second time as sales of the Hunger Games books remained below last year's levels.
Economically speaking, the National Association of Realtors said that existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a three-year high, but slightly lower than expectations.
Elsewhere, the Philly Fed's index rose to two in March from minus 12.5 the prior month. Readings lower than zero signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Economists were expecting a reading of minus three for March.
Moreover, jobless claims totaled 336,000 last week, according to the U.S. Department of Labor. That's up 2,000 from the prior week, but less than the 345,000 claims forecast by Briefing.com consensus.
Prices on the 10-year U.S. Treasury arched back, raising yields to Wednesday’s 1.94%. Treasury prices and yields move in opposite directions.
Oil prices dropped 35 cents to $93.15 U.S. a barrel.
Gold prices tacked on $5.30 to $1,612.80 U.S. an ounce.
