The Toronto stock market was higher Tuesday afternoon with modest gains across most sectors, even as commodity prices lost ground amid questions about the economic impact from a looming U.S. government fiscal fight.
The S&P/TSX composite index gained 37.71 points to end Tuesday at 12,848.89
The Canadian dollar slid 0.17 cents to 97.07 cents U.S.
Consumer staples led advancers, as convenience store chain Alimentation Couche-Tard gained $1.62 to $65.33.
Financials also found support with TD Bank ahead 68 cents to $92.03.
Worries about the economic fallout from a U.S. budgetary impasse pressured commodity prices.
December copper was down four cents to $3.26 U.S. a pound but the base metals sector rose First Quantum Minerals climbed 11 cents to $19.08.
The energy sector climbed while Cenovus Energy was ahead 63 cents to $31.30.
The gold sector rose as Barrick Gold Corp. improved by 26 cents to $19.14.
BlackBerry was a weak spot a day after 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.
On Tuesday, the company's shares were down 30 cents to $8.78 on the TSX and off 23 cents to $8.58 U.S. in New York.
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.
He resigned to pursue an opportunity with a "leading international company," which wasn't identified. Its shares were off seven cents at $12.34.
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 1.22 points to 946.12
All but three of the 14 Toronto subgroups were up by day’s end. Consumer staples were propelled up 1.1%, while consumer discretionaries and utilities each strengthened 0.8%.
The three laggards were global base metals, sliding 0.3%, health-care, weaker by 0.2%, and real-estate, down 0.02%.
ON WALLSTREET
Investors are weighing the possibility that the U.S. government might shut down on October 1.
The Dow Jones Industrials stumbled 66.79 points to 15,334.60. The S&P 500 index docked 4.42 points to 1,697.42. Both indexes have now suffered four straight days of losses.
The NASDAQ advanced 2.97 points to 3,768.25.
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 3% 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 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 digits.
Carnival's stock plunged after the cruise operator reported a drop in profits.
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 9% on the news.
Shares of Red Hat, a business software maker, fell due to concerns about sales growth for the rest of the year.
BlackBerry announced late Monday that its largest shareholder, Fairfax Financial, was leading a group to acquire the troubled company for $9 a share. Blackberry shares edged down more than 3% Tuesday and remain below the $9 mark.
Prices for the 10-year U.S. Treasury gained, lowering yields to 2.65% from Monday’s 2.71%. Treasury prices and yields move in opposite directions.
Oil prices faded 16 cents to $103.43 U.S. a barrel.
Gold prices fell $3.60 at $1,323.30 U.S. an ounce.
