North American markets were relatively flat Friday, despite having lots of data to take cues from, as the release of corporate earnings reports continued and economic indicators come in from both Canada and China.
The S&P/TSX composite index doffed 16.50 points to greet noon at 12,536.42
The Canadian dollar gathered 0.26 cents to 97.09 cents U.S.
On the TSX, BlackBerry shares rose nearly 7%, or 61 cents, on news that the Canadian smartphone-maker's chief executive officer and board of directors are warming to the idea of taking the company private.
The reports from Reuters said no decision was imminent and BlackBerry issued a brief statement saying it doesn't comment on rumours or speculation. The Toronto-listed shares climbed to $10.12 in mid-morning trading.
Meanwhile, autoparts giant Magna International Inc. reported a $415-million U.S. profit and record-high second-quarter sales, which were up 16% from the same time last year and well above analyst estimates.
It says it currently expects between $33.3 billion and $34.7 billion of sales in 2013 -- about $700 million higher than Magna's outlook in May when its first-quarter results were issued. Magna shares were ahead $2.15 or nearly 3% to $82.30.
Brookfield Asset Management Inc. is also reporting $802 million U.S. of net income and $464 million U.S. of funds from operations for common shareholders in the second quarter.
Both results were more than double the levels a year earlier, when the Toronto-based asset manager had $379 million U.S. of net income and $159 million of funds from operations.
On a per-share basis, net income was 31 cents and funds from operations was 68 cents in the three months ended June 30, up from 17 cents and 20 cents respectively in the second quarter of 2012.
Brookfield is one of Canada's largest conglomerates, with numerous publicly traded subsidiaries and investments primarily focused on real estate, power generation and natural resources, particularly in the forestry sector. Despite the positive earnings, its shares dipped nine cents to $38.49.
Dorel Industries Inc. widely missed expectations as the baby products and bike manufacturer's second-quarter net income plummeted to $13.2 million U.S. The Montreal-based company said revenues dropped five per cent due to poor weather, discounting and continuing difficult economic conditions.
An onslaught of data from China, the world's second-largest economy, was not enough to lift the markets, as figures overnight showed that Chinese inflation in July was steady at an annual rate of 2.7%-- slightly below an expected modest increase to 2.8%
Industrial production rose 9.7% in the year to June, ahead of expectations for a nine per cent increase and retail sales grew 13.2% in July from a year earlier, slightly slower than June's growth rate.
On the domestic economic front, Statistics Canada reported that employment decreased by 39,000 in July, and the unemployment rate rose 0.1 percentage points to 7.2%. With this decrease, employment gains have averaged 11,000 per month over the past six months, slower than the average of 27,000 observed during the preceding six-month period.
Since July 2012, employment has increased 1.3%, or 226,000. At the same time, the number of hours worked has grown 0.7%, as part-time employment rose at a faster pace than full-time (2.2% versus 1.1%).
Moreover, Canada Mortgage and Housing Corporation told us that in July, the seasonally-adjusted annualized rate of housing starts was 192,853 units, a decline from June and in line with market expectations. The June figure was revised down to 193,797 from 199,586 originally reported.
Analysts polled by Reuters had expected 193,500 starts in July.
ON BAYSTREET
The TSX Venture Exchange dropped 0.67 points to 914.66
Eight of the 14 Toronto subgroups were higher by noon, led by metals and mining issues, up 3.4%, while global base metals and gold surged 2.2% each.
The half-dozen laggards were weighed mostly by industrials, down 1.2%, while financials fell 0.6% and consumer staples were down 0.5%.
ON WALLSTREET
Stocks are on track to end the week with a whimper.
The Dow Jones Industrial Average backtracked 107.75 points at noon to 15,390.60
The S&P 500 index was negative 7.72 points to 1,689.76. The NASDAQ docked 6.69 points to 3,662.44.
This week notwithstanding, stocks have been on fire this year, jumping between 18% and 23%.
Even though the broader market wasn't doing much, there were several high-profile stocks on the move. Priceline.com shares moved closer to $1,000 U.S The online travel company posted quarterly earnings Thursday that beat expectations.
J.C. Penney shares fell more than 7%, one day after gaining 7%. Activist investor Bill Ackman wants a new CEO, and in a letter, stated how worried he is about the health of the company.
Shares of BlackBerry surged, after Reuters reported that the Canadian smartphone company is looking for a buyer to take it private.
Still, not everyone was sure that the Blackberry rally had staying power.
Prices for the 10-year U.S. Treasury dropped a bit, raising yields to 2.60% from Thursday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices reacquired $2.03 to $105.43 U.S. a barrel.
Gold prices gained $4.50 to $1,314.40 U.S. an ounce.
