The Toronto stock market was lower Wednesday, weighed down by some earnings misses while mining stocks fell amid data that showed a deepening slowdown in China's manufacturing sector.
The S&P/TSX Composite Index settled 32.11 points to greet noon at 12,713.27
The Canadian dollar dropped 0.10 cents to 97.10 cents U.S.
Cenovus Energy Inc. had $255 million or 34 cents per share in operating earnings and a $179-million net profit in the second quarter.
Cenovus also said its 2013 oilsands operating costs this year will be higher than forecast in its previous guidance. Its shares fell $1.28 to $30.97.
Canadian Pacific Railway posted net income for the second-quarter of $252 million, or $1.43 per diluted share, versus $103 million, or 60 cents per share, a year earlier. The earnings missed estimates by six cents a share and its stock dipped $1.86 to $128.32.
But CP's operating ratio, which is a key measure of how efficiently railways operate, improved to 71.9% in the second quarter, an all-time record for the railroad.
On a more positive note, Rogers Communications Inc. shares were ahead $1.31 to $42.54 as the company reported $497 million in quarterly adjusted net income, a four per cent increase from last year and better than analysts' consensus estimate of $491.95 million.
Loblaw Companies Ltd. made $178 million in net earnings in the second quarter, up from $156 million in the same period a year ago. The grocer's basic net earnings per common share rose 14.5% in the quarter to 63 cents, about five cents per share better than a consensus estimate compiled by Thomson Reuters and its shares advanced $1.10 to $49.04.
The TSX base metals sector fell amid weak Chinese manufacturing data while metal prices advanced with September copper up one cent to $3.21 U.S. a pound. An HSBC survey showed China's manufacturing at an 11-month low this month.
HSBC said the preliminary version of its monthly purchasing managers’ index declined to 47.7 this month from June's 48.2 on a 100-point scale on which numbers below 50 show a contraction in activity.
Teck Resources fell 50 cents to $23.87.
The gold sector was down while Goldcorp Inc. faded 73 cents to $29.96.
The energy sector lost strength U.S. energy department data showed supplies dropped by 2.8 million barrels last week, against the 2.6 million barrel drop that had been expected. Inventories have headed sharply lower over the past four weeks, supporting a 10% rise in prices this month.
In other corporate developments, Bombardier Aerospace says the first flight of its new CSeries commercial jet will occur in the coming weeks, without giving a specific date. The Montreal-based company had been aiming for the first flight by the end of July and Bombardier Inc. shares lost four cents to $5.03.
ON BAYSTREET
The TSX Venture Exchange slid 1.58 points to 928.90
In all, eight of the 14 Toronto subgroups were down, weighed by gold, off 3%, materials, down 2%, while global base metals were off 1.9%.
The half-dozen gainers were led by information technology issues, up 1.1%, telecoms, up 1%m and consumer staples, ahead 0.9%.
ON WALLSTREET
U.S. stocks were mixed in midday trading Wednesday as investors digested the latest corporate earnings reports.
The Dow Jones Industrials fell 49.66 points to pause for lunch hour at 15,518.10
The S&P 500 index moved back 3.96 points to 1,688.43. The NASDAQ improved 6.13 points to 3,585.41
Shares of Apple were rallying after the iPhone maker reported quarterly earnings that beat expectations, easing investor anxiety about tech giant's future. One of the most widely-held stocks, Apple shares often have an out-sized impact on the overall market.
Also boosting the broader market was Ford, which posted better-than-expected profits, and said this was its best-ever second quarter in North America and Asia.
In other earnings, PepsiCo, maker of Pepsi and Frito-Lay products, reported an increase in quarterly profit.
Airplane manufacturer Boeing reported improved earnings and revenue, and raised its guidance for the year.
Caterpillar posted earnings and sales below forecasts. The heavy equipment manufacturer also lowered its earnings and sales outlook for the year.
Shares of EA rose nearly 10% after the video game maker said earnings were above the company's forecast.
Broadcom reported a sharp drop in quarterly earnings, which the chipmaker blamed on its $3.7-billion U.S. acquisition of NetLogic Microsystems.
Facebook and Visa are due after the close.
Overall, corporate earnings have been better than anticipated, although revenue growth remains modest.
Among the nearly 150 companies in the S&P 500 that have reported second-quarter results, 65% have topped analysts' low expectations, according to S&P Capital IQ.
Aside from earnings, Dell said it has received a revised offer from founder Michael Dell, and would be holding a special meeting Aug. 2 to consider its options.
Apparel company HanesBrands said it reached an agreement to buy Maidenform Brands in an all-cash deal worth $575 million U.S.
On the economic front, the U.S. Commerce Department said new home sales rose at an annual rate of 497,000 in June, up 8.3% from May. Economists had expected an annual rate of 483,000.
Prices for the 10-year U.S. Treasury sagged, raising yields to 2.59% from Tuesday’s 2.52%. Treasury prices and yields move in opposite directions.
Oil prices dipped $1.96 to $105.27 U.S. a barrel.
Gold settled $5.80 to $1,328.90 U.S. an ounce.
