Energy companies helped push the Toronto stock market higher Wednesday as worries about the prospect of a U.S.-led military strike on Syria sent crude up to two-year highs.
The S&P/TSX composite index gained 16.01 points to end Wednesday at 12,607.22 – off its highs of the day -- as the market also found support from rising gold stocks and record earnings from National Bank after geopolitical worries led to a 169-point loss on Tuesday.
The Canadian dollar faded 0.09 cents to 95.38 cents U.S.
National, Canada's sixth-biggest bank, posted net income of $419 million or $2.39 a diluted share, up from $353 million or $1.98 per share in the same 2012 period. Revenue rose 5% to $1.29 billion. Ex-items, net income was a record $391 million or $2.22 per diluted share, 16 cents higher than analysts expected and its shares rose $2.04 to $81.28.
The gold sector fell yet again, following a slide of 4% Tuesday even as gold prices erased early gains. Barrick Gold Corp. ended the day lower 29 cents to $20.35 while Goldcorp Inc. dropped 31 cents to $31.04.
Gold has also been in demand through its status as a haven in times of geopolitical uncertainty. Earlier in the session, it had hit a three-month high of $1,434 U.S.
The energy sector was ahead as oil ran up to its highest level in over two years on worries over supply disruptions.
Canadian Natural Resources was ahead $1.23 to $32.97 and Cenovus Energy was up 81 cents to $30.86.
The metals and mining sector slid while the September copper contract was down three cents to $3.30 U.S. a pound. HudBay Minerals rose 12 cents to $7.15.
The industrials sector ran ahead as transport giant Bombardier Inc. has signed a preliminary agreement with a Russian state corporation for the purchase of as many as 100 Q400 NextGen aircraft in a deal that could be worth up to US$3.39 billion. The agreement includes 50 Q400 NextGen aircraft to be sold to Russian operators and the potential placement of at least another 50 in the region. Bombardier gained 12 cents to $4.69.
Techs were also supportive with BlackBerry ahead 27 cents to $10.81 amid reports that Chinese technology company Lenovo will make a $17 U.S. a share bid for the smartphone maker.
In other corporate news, Capital Power says it will sell three New England power plants to Emera Inc. in a $541-million U.S. deal that will see it will wind down its commodity and energy trading business outside Alberta before year-end.
The company plans to close its Toronto office immediately and its Chicago office in 2014, changes that are expected to reduce annual expenses by $25 million to $30 million and lead to a $10-million restructuring charge in the third quarter. Capital Power shares gained 46 cents to $20.34 while Emera slipped 15 cents at $30.20.
ON BAYSTREET
The TSX Venture Exchange closed Wednesday negative by 3.20 points to 933.54.
On the day, all but four of the 14 Toronto subgroups were negative, weighed mostly by gold, off 2.4%, materials, sliding 1.5%, and real-estate, dipping 0.9%.
The four gainers were led by energy stocks, up 1.5%, information technology, advancing 0.9%, and industrials, gaining 0.8%.
ON WALLSTREET
U.S. stocks made their way hesitantly back Wednesday, even as uncertainty roils markets around the world and investors fret over the potential consequences of a U.S.-led military strike on Syria.
The Dow Jones Industrials recovered 48.38 points to 14,824.50, after collapsing 170 points Tuesday.
The S&P 500 index gained back 4.80 points to 1,635.28. The NASDAQ gained 14.83 points to 3,593.35
August is shaping up to be the worst month for the market in over a year, but all three major U.S. indexes remain up between 13% and 19% in 2013.
The world seems increasingly convinced that the U.S. -- and its allies -- will make a military strike against Syrian government forces in the coming days. U.S. officials report that Syrian forces used chemical weapons to attack innocent people.
Energy stocks, which have been underperforming the market for most of this year, have done well in the past few days, as potential for the conflict to escalate rose.
Shares of Exxon Mobil, Hess, Chevron, BP, and Marathon Oil surged Wednesday.
Shares of BlackBerry continued to climb on Wednesday, rising nearly 4%. The jump comes a day after reports surfaced that the ailing smartphone maker is considering spinning off its Messenger unit into a more agile subsidiary.
Facebook rose back above the $40 U.S. mark after an eMarketer report showed that the social media site is taking the mobile ad market by storm. Mobile revenue is growing rapidly for Facebook. But it is still expected to trail industry leader Google this year.
It's been a good couple days for jewelry retailers. Shares of Zale jumped 22% after it reported its first full-year profit in several years. A day earlier, Tiffany & Co reported better-than-expected quarterly results.
TiVo shares were up following healthy earnings after the bell on Tuesday. The rise was driven by several factors, including good reviews for its new Roamio box, a jump in subscribers and revenue generated from legal settlements.
Prices for the 10-year U.S. Treasury drooped, raising yields to 2.78% from Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices picked up 97 cents to $109.90 U.S. a barrel.
Gold prices fell $3.20 to $1,415.70 U.S. an ounce.
