Toronto’s main stock index was lower by noon ET Friday, hit again by disappointment over a quarterly report issued by Potash Corp the day before and undercut by renewed worry about the U.S. Federal Reserve plans for its monetary stimulus program.
The S&P/TSX Composite Index fell 43.20 points to meet noon at 12,625.94
The Canadian dollar dipped 0.12 cents to 97.16 cents U.S.
The return of Fed concerns and choppy trading in bullion ensured a volatile session for gold miners. They turned higher after an initial fall, only to retreat again. In the group, Barrick Gold Corp was down 0.6% at $17.85.
TransCanada Corp gave back 0.4% to $46.24 after rising earlier in the day. Canada's number-two pipeline operator reported a 34% jump in second-quarter profit due to higher prices in its power-generation business.
Focus was on the Fed's policy meeting next week, with the market again uneasy that it might dial back its stimulus program sharply.
The materials sector, which includes mining stocks, reversed earlier gains to fall. Losses in the group were led by Potash Corp, which fell 1.9% to $37.61. The stock was hit by a number of price-target cuts from analysts on Friday after the company released quarterly results on Thursday that fell short of expectations. It also cut its outlook.
Energy shares fell, mirroring weaker oil prices. Canadian Natural Resources was down 1.5% at $33.19.
Financials, the index's most heavily weighted sector, lost a bit of ground. Manulife Financial Corp fell 0.4% to $18.40, and Bank of Nova Scotia gave back 0.2% to $58.23.
Celestica Inc reported a 19% rise in second-quarter profit on Friday, driven mainly by growth in its communications business. Shares of the contract electronics manufacturer jumped 7.4% to $10.50.
ON BAYSTREET
The TSX Venture Exchange fell into the red 3.01 points to 921.16
All but two of the 14 Toronto subgroups were negative by noon, weighed mostly by gold stocks, down 1.3%, materials, fading 0.8%, and health-care, 0.6% to the bad.
The two stalwarts were information technology, up 0.5%, and metals and mining, up 0.2%.
ON WALLSTREET
Investors took a step back Friday as they sift through the latest corporate earnings reports.
The Dow Jones Industrials slumped 95.08 points to break for lunch Friday at 15,460.50
The S&P 500 index slipped 9.40 points to 1,680.85 The NASDAQ dropped 7.46 points to 3,597.23
Tech shares have been the biggest drivers this week, boosted by strong earnings from Apple and Facebook, but weak results from Amazon and Zynga could put pressure on the sector Friday.
Amazon shares were lower after the online retailer posted a surprise loss. And Zynga's stock sank after the online gaming company issued a weak outlook for the third quarter and said it's not going to pursue online gambling in the United States.
Expedia was the biggest drag on both the Nasdaq and S&P 500 Friday. Shares of the online travel company plunged 24% on a worse-than-expected earnings report.
Shares of Activision Blizzard surged more than 21% after the maker of games like World of Warcraft and Call of Duty said it was striking out on its own, through an $8.2-billion U.S. deal.
Starbucks shares rose after the coffee merchant delivered better-than-expected quarterly earnings and sales.
Halliburton stock rose nearly 4% after the Justice Department said the oilfield services firm would plead guilty to destroying computer test results that had been sought as evidence in the Deepwater Horizon disaster.
Tesla Motors shares gained after Deutsche Bank upgraded the electric car maker.
In economic news, the University of Michigan and Thomson Reuters said a key measure of consumer sentiment rose to 85.1 in July, the highest level in six years.
Prices for the 10-year U.S. Treasury gained back some ground, lowering yields to 2.57% from Thursday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices gave back 78 cents to $104.71 U.S. a barrel.
Gold prices were $8.60 weaker to $1,320.20 U.S. an ounce.
