The Toronto stock market was listless Tuesday, pressured by mining stocks as commodity prices continued to lose ground amid questions about the economic impact from a looming U.S. government fiscal fight.
The S&P/TSX composite index gained 47.95 points to stop for noon ET at 12,859.13
The Canadian dollar slid 0.12 cents to 97.12 cents U.S.
The base metals sector fell with December copper down five cents to $3.24 U.S. a pound. First Quantum Minerals shed 38 cents to $18.59.
BlackBerry shares weakened following a move to take the company private. BlackBerry has signed a letter of intent with a consortium led by its biggest shareholder, Fairfax Financial that involves shareholders getting $9 U.S. a share.
The company's shares were down 45 cents to $8.88 on the TSX and off 18 cents to $8.64 U.S. in New York.
Consumer staples led advancers, as convenience store chain Alimentation Couche-Tard gained 95 cents to $64.66.
In corporate news, Sears Canada has named Douglas Campbell as its new president and chief executive officer. He replaces Calvin McDonald, who spearheaded a number of major initiatives to reposition the company in a hotly competitive marketplace.
On the economic front, Statistics Canada told us this morning that retail sales rose 0.6% in July, led by higher sales at gasoline stations. The market call was for a gain of 0.5%.
Sales have been trending upwards since the beginning of 2013. Gains were reported in eight of the 11 sub-sectors, representing 52% of total retail trade.
ON BAYSTREET
The TSX Venture Exchange eked ahead 0.24 points to 945.14
All but two of the 14 Toronto subgroups were higher, led by consumer staples, up 1.1%, consumer discretionaries, spiking 0.8%, and utilities, ahead 0.7%.
The two laggards were gold, off 0.2%, and materials, down 0.1%.
ON WALLSTREET
Investors are weighing the possibility that the U.S. government might shut down on October 1
The Dow Jones Industrials regained 28.45 points to greet noon hour at 15,429.80
The S&P 500 index gained 3.10 points to 1,704.54. The NASDAQ advanced 20.10 points to 3,785.39.
But even if a shutdown is avoided, the bigger concern is whether Congress will raise the debt ceiling before the drop-dead deadline of October 18. If that doesn't happen, the government risks defaulting on its debt. Another credit rating downgrade could be in the cards too.
Positive signs from the housing market helped stocks a bit. Home prices continued to climb in July, according to S&P/Case-Shiller data.
Homebuilder Lennar reported a boost in quarterly earnings and revenue compared to the year-earlier quarter, with a significant increase in new-home orders. KB Home also beat expectations for its earnings.
Facebook shares rose nearly 4% and hit a new all-time high. The stock, which only recently topped its previous record of $45 U.S. from its IPO day, is now flirting with $50 U.S. a share. An analyst at Citigroup upgraded the stock to a "buy." There are also reports that China may soon loosen some of its Internet restrictions, which could pave the way for Facebook to enter the world's most populous market.
Online travel site Priceline continues to hit new highs, after recently topping $1,000 U.S. Priceline is the first stock in the S&P 500 with a price in the four-digit level.
Beleaguered retailer J.C. Penney hit a new 52-week low Tuesday, as investors fear a slower-than-expected back to school season and worry about whether the company needs more cash.
Chip equipment maker Applied Materials announced a $29-billion U.S. merger with Tokyo Electron Limited "to create a global innovator in semiconductor and display manufacturing technology." Shares of Applied Materials rose on the news.
Shares of Red Hat, a business software maker, fell due to concerns about sales growth for the rest of the year.
Carnival's stock plunged after the cruise operator reported a drop in profits.
BlackBerry announced late Monday that its largest shareholder, Fairfax Financial, was leading a group to acquire the troubled company for $9 U.S. a share. Blackberry shares edged lower Tuesday and remain below the $9 mark.
Prices for the 10-year U.S. Treasury gained, lowering yields to 2.66% from Monday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices faded 84 cents to $102.75 U.S. a barrel.
Gold prices fell $11 at $1,316 U.S. an ounce.
