The Toronto stock market registered a modest loss Tuesday as key economic data reinforced the view that the U.S. recovery is still on track, helping to make up for worsening conditions in Europe.
The S&P/TSX index fell back 13.04 points to end the day at 12,682.10
The Canadian dollar was up 0.15 cents at 98.52 cents U.S.
The gold sector led TSX decliners, as the strong U.S. economic data helped push June bullion on the New York Mercantile Exchange down. The sector is down 25% over the past year as the bottom line for miners has come under increasing pressure from falling prices and higher costs to get the ore out of the ground.
Barrick Gold Corp. faded 74 cents to $28.74 while Iamgold fell 33 cents, or 4.6%, to $6.89.
May copper was unchanged at $3.38 U.S. a pound after closing Monday at an eight-month low. The base metals sector moved down, adding up to an 18% per cent tumble over the past year, reflecting lower demand for copper, particularly from China, amid a slow global economic recovery. HudBay Minerals declined 26 cents to $9.38.
Utilities climbed as Atlantic Power gained 34 cents, or 7.2%, to $5.08.
Consumer staples was also up as convenience store owner Alimentation Couche-Tard rose 62 cents to $55.68.
Insurers helped keep the financial sector positive as Manulife Financial rose 32 cents to $15.06.
The energy sector was up as Suncor Energy gained 37 cents to $31.20.
In corporate news, TransCanada Corp. shares gained 36 cents to $49.65 as it begins to seek firm commitments for new pipeline capacity to move oil from Western to Eastern Canada.
The Energy East Pipeline project will involve 3,000 kilometres of existing natural gas pipeline, converted to carry crude, and 1,400 kilometres of new pipeline that could stretch as far as New Brunswick.
TransCanada is seeking binding commitments for delivery points in Montreal, Quebec City and Saint John, N.B.
Traders also looked ahead to March employment data for Canada and the U.S. coming out Friday.
Economists expect American job gains totaled about 190,000 in March after the economy cranked out 236,000 jobs in February, with the unemployment rate staying unchanged at 7.7%.
In Canada, Statistics Canada was expected to report that about 10,000 jobs were created in March. However, CIBC said in a note that it expects only about 5,000 new positions following a blowout performance in February when 50,700 jobs were created.
ON BAYSTREET
The TSX Venture Exchange shed 20.46 points to 1,078.67
Eight of the 14 Toronto subgroups were up on the day, led by consumer staples and utilities, each ahead 0.9%, while financials were up 0.8%.
Gold took the biggest hit among the half-dozen laggards, sliding 4%, while materials demurred 3%, and the metals and mining area lost 1.7%.
ON WALLSTREET
Strength in the health care sector gave stocks a shot in the arm Tuesday, pulling the Dow to another record trading high.
The Dow Jones Industrials jumped 89.16 points to close at 14,671
The S&P 500 index moved higher 8.08 points to 1,570.25. The tech-heavy NASDAQ Composite progressed 15.69 points to 3,254.86.
It's been a solid 2013 for stocks: Even with a slight retreat Monday, all three major indexes are still up between 7% and 11% for the year.
Tuesday's rally was fueled by the health care sector, one day after the government announced welcome news for the industry: Medicare Advantage rates will jump by 3.3% next year, rather than the 2.3% cut that had been proposed previously.
Shares of insurers Humana, United Health and Aetna rose between 5% and 7%.
Major automakers reported solid monthly sales figures for March. Auto sales at General Motors, Ford and Chrysler all posted U.S. sales gains of 5% or better, while Toyota' sales edged up 1% from a year ago. Chrysler posted its best sales month since December 2007.
Not all sectors were flying high Tuesday. Tech received a few spots of bad news, courtesy of Goldman Sachs analysts.
Hewlett-Packard shares slid nearly 6% after Goldman downgraded the company to "sell."
Goldman also kicked Apple off its "conviction buy" list and cut the price target to $575 from $600 U.S. Still, the investment firm is retaining its "buy" rating for Apple, whose shares were up about 1% Tuesday.
NASDAQ shares slumped 11% after the exchange operator said it planned to buy eSpeed, an electronic market for Treasuries, from BGC Partners. Investors may be punishing NASDAQ for paying a whopping $1.2 billion U.S. BGC shares, meanwhile, leaped 40%.
On the economic slate, the Census Bureau reported that factory orders jumped 3% in February. That was slightly better than expected, and follows an underwhelming report on U.S. manufacturing Monday.
Prices on the 10-year U.S. Treasury sagged, upping yields to 1.86% from Monday’s 1.84%. Treasury prices yields move in opposite directions.
Oil prices inched forward five cents to $96.95 U.S. a barrel.
Gold prices tumbled $23.50 to $1,576 U.S. an ounce.
