Canadian stock markets experienced slight gains at the opening Thursday, perhaps a signal that investors are in need of a break from recent record-setting highs as they await earning reports from several corporate heavyweights.
The S&P/TSX composite index gained 12.03 points to begin Thursday’s session at 12,597.08, after Wednesday’s 120-point hike.
The Canadian dollar dropped 0.01 cents to 99.67 cents U.S.
In corporate news, Canadian Tire Corp. Ltd. says it’s planning on creating a $3.5-billion real estate investment trust, with an initial public offering later this year.
The announcement came as the iconic retailer announced a 2.9% increase in first-quarter earnings amid a 1.7% increase in total revenue to $2.48 billion from $2.44 billion in the same 2012 quarter. Canadian Tire shares galloped ahead $10.26, or 13.9%, to $84.30
BCE Inc. reported a 6.6% increase in net earnings in the first quarter, although revenue remained almost unchanged year over year.
Canada’s largest communications company says net earnings attributable to common shareholders were $566 million or 73 cents per share, up from $531 million or 69 cents per share in the same 2012 period.
Revenue rose only slightly, to $4.34 billion from $4.33 billion. BCE shares advanced six cents to $47.98.
Meanwhile, Bombardier Inc. reported a drop in net income in the first quarter, but saw results improve 4% on an adjusted basis. The Montreal-based plane and train builder says net income was $148 million U.S. or eight cents per share in the three months ended March 31, down from $155 million U.S., also eight cents per share, in the same 2012 period.
On an adjusted basis, net income amounted to $156 million U.S., up from $150 million. Revenue totaled $4.3 billion U.S., up from $3.5 billion. Bombardier shares traveled higher 22 cents, or 5.2%, to $4.45.
On the economic slate, Statistics Canada reported this morning that new housing prices rose 0.1% in March, following a 0.2% increase in February.
ON BAYSTREET
The TSX Venture Exchange eked up 1.37 points to 970.69.
Nine of the 14 Toronto subgroups were higher in the first hour, led by consumer discretionary stocks, up 1.3%, information technology issues, up 0.6%, and telecoms, ahead 0.5%.
The five laggards were weighed down mostly by gold, down 0.9%, materials, sliding 0.5%, and health-care, off 0.3%.
ON WALLSTREET
The broader U.S. stock market was little changed at the open Thursday, but a few favourites among short sellers were surging following upbeat earnings reports.
The Dow Jones Industrials subsided 12.06 points, to 15,093.10, from Wednesday’s all-time high.
The S&P 500 index subtracted 1.15 points from Wednesday’s all-time peak, to 1,631.54, while the NASDAQ Composite fell 4.03 points to 3,409.24
All three indexes are up between 13% and 15% since the start of the year.
Tesla rallied after the electric car maker delivered its first-ever profit and topped sales estimates. Green Mountain Coffee Roasters shares jumped after the company reported better-than-expected earnings and announced plans to extend its partnership with Starbucks.
And Groupon shares rose sharply after the daily deal site reported a narrower loss compared to a year earlier.
In corporate news, TechCrunch reported that Microsoft may offer to buy the digital assets of Barnes and Noble's Nook Media e-reader unit for $1 billion U.S. The speculation sparked a 20% surge in Barnes & Noble stock.
Shares of Monster Beverage tumbled after the company's quarterly earnings missed estimates. The energy drink maker, which has been criticized for marketing its highly caffeinated products to children, blamed the drop in earnings on legal costs and other short-term factors.
In other earnings news, DISH Network released quarterly results before the opening bell, showing a decline in sales and profit.
News Corp. shares jumped as well after the media conglomerate said sales rose in the first quarter and reported earnings that met expectations.
Economically speaking, after a solid monthly jobs report last week, the U.S. government said that initial jobless claims dropped further than expected to 323,000 last week, the lowest weekly tally in five years.
Later this morning, the U.S. Census Bureau will release its monthly report on wholesale inventories.
Prices on the 10-year U.S. Treasury plummeted, lifting yields to 1.81% from Wednesday’s 1.76%. Treasury prices and yields move in opposite directions
Oil prices backtracked 72 cents to $95.90 U.S. a barrel.
Gold prices settled $12.50 at $1,461.20 U.S. an ounce
