The Toronto stock market was pretty much unchanged Tuesday amid data showing a stronger-than-expected read on Canadian economic growth and another report that raised concerns about the health of the American economy.
The S&P/TSX index recovered 0.45 points by midday Tuesday at 12,313.12
The Canadian dollar progressed 0.40 cents to 99.27 cents U.S. early Tuesday.
But the TSX found support in strong earnings reports from oil producer Suncor Energy and business technology company CGI Group Inc.
Shares of Suncor rose $1.25 to $30.89 after it posted operating earnings of $1.37 billion, or 90 cents per share Monday night, compared with $1.32 billion, or 84 cents per share, in the same period a year earlier. That handily beat the average analyst estimate of 75 cents per share, according to Thomson Reuters.
Canada’s largest energy company also increased its quarterly dividend to 20 cents per share from 13 cents and announced a $2-billion share buyback.
Shares of CGI Group Inc. also pushed higher after the company reported better than expected results. The company earned $114.2 million or 36 cents per diluted share in its latest quarter, compared with $105.7 million or 40 cents per share a year ago when the company had fewer shares.
Revenue soared to $2.53 billion from $1.065 billion, on the acquisition last year of Logica. CGI shares were up $3.81, or 14.1 per cent, to $30.84.
On the TSX, the gold sector declined, while Goldcorp Inc. faded 84 cents to $28.34.
The base metals sector was down as July copper on the Nymex slipped five cents to $3.18 U.S. a pound. First Quantum Minerals declined 49 cents to $16.80.
The industrials sector also weighed on the TSX as Canadian Pacific Railway stepped back $1.40 to $124.44.
In the energy sector, Imperial Oil slipped 91 cents to C$39.15.
In other earnings news, Thomson Reuters reported a 7% decline in operating profit in the first quarter, citing severance costs and an increase in depreciation and amortization expenses.
The global news and information company said underlying operating profit was $462 million, with adjusted earnings of 38 cents per share. Its shares were down $1.01 to $33.09.
On the economic slate, Statistics Canada reported that GDP grew 0.3% in February, the same pace as in January, largely on the mining and energy gains.
The agency also reported that its industrial product price Index edged up 0.1% in March, led by higher prices for motor vehicles. Its raw materials price index fell 1.7% in March, mostly because of lower prices for crude oil.
ON BAYSTREET
The TSX Venture Exchange dipped 2.79 points to 962.14
In all, nine of the 14 Toronto subgroups were down by midday, weighed by gold stocks, tumbling 3.1%, materials, down 1.3%, and global base metals, off 1%
The five gainers were led by information technology, hiking 5.3%, utilities, ahead 1%, and energy, eking up 0.9%.
ON WALLSTREET
U.S. stocks remained mixed at the noon ET break Tuesday, one day after the S&P 500 closed at a record high and the NASDAQ reached its highest level in more than 12 years.
The Dow Jones Industrials remained negative by 17.66 points to break for lunch at 14,801.10, off its lows of the morning.
The S&P 500 index recaptured 1.09 to 1,594.70. The NASDAQ Composite regained 10.89 points to 3,317.91
All three indexes are on track to clock in gains of more than 1% for April.
The Dow and S&P 500 are on track for a 1.5% increase, while the NASDAQ is up about 1.2% for the month. That would mark the fifth straight up month for the Dow, and the sixth for the S&P 500 and NASDAQ
Pfizer posted first-quarter profit and earnings that fell short of expectations and also lowered its outlook for the year. The lackluster results sent shares of the drug maker down more than 3%, making it the biggest loser in the Dow.
Pitney Bowes reported first-quarter earnings that plunged almost 60% from a year ago and came in below analysts expectations. The company also slashed its quarterly dividend in half. Shares of mailing and package services company tumbled almost 20%, making it the biggest decliner in the S&P 500.
Cummins shares dropped after the truck engine manufacturer said its first-quarter earnings fell almost 40% from a year ago due to weak demand in China and North America.
But earnings out of European companies including oil giant BP and banks UBS and Deutsche Bank surprised investors with better-than-expected results. Shares of all three companies were sharply higher.
Shares of Best Buy rallied after the retailer announced an agreement to sell its European stake to Carphone Warehouse. The stock was the top performer in the S&P 500 Tuesday, and is the second-biggest gainer of the year in the broad index, with shares up more than 120% year-to-date.
On the economic beat, the S&P/Case-Shiller 20-city home price index rose a slightly-higher-than-expected 9.3% in February, marking the biggest gain since the height of the housing bubble.
The Institute for Supply Management's index of manufacturing activity in the Midwest dropped to 49 in April, missing expectations and signaling contraction in the sector for first time since September 2009.
The ISM's reading on national manufacturing activity is due Wednesday, and economists are still expecting it to show a modest expansion.
In other economic news, the U.S. Conference Board's monthly consumer confidence index rose to 68.1 in April, from 59.7 the prior month
Prices on the 10-year U.S. Treasury lost ground, pushing yields back up to Monday’s 1.67%. Treasury prices and yields move in opposite directions.
Oil prices slid 90 cents to $93.59 U.S. a barrel.
Gold prices were flat at $1,467.40 U.S. an ounce
