The Toronto stock market was modestly higher Wednesday as mining stocks rose alongside metal prices. But an impending deadline for dealing with the U.S. debt ceiling continued to cast a shadow over trading.
The S&P/TSX composite index gained 39.65 points to approach noon hour ET at 12,888.54
The Canadian dollar picked up 0.05 cents to 97.13 cents U.S.
December copper was ahead one cent to $3.27 U.S. a pound and the base metals sector led advancers, with Teck Resources ahead 50 cents to $28.70.
The TSX gold sector was up as Inc. rose 24 cents to $26.63.
The energy sector was up as Canadian Natural Resources advanced 34 cents to $32.49.
Telecoms led decliners as Telus Corp. fell 69 cents to $34.87.
The information technology sector was also lower as BlackBerry shares continued to deteriorate as The Globe and Mail reported that Fairfax Financial Holdings Ltd. is seeking more than $1 billion U.S. from other investors to help fund a takeover of BlackBerry Ltd.
Fairfax said on Monday that it's leading a group that would buy the Canadian smartphone maker for $4.7 billion U.S., paying shareholders $9 U.S. a share.
The Globe said that as of Tuesday only one pension fund is seriously considering joining the Fairfax-led consortium -- the Ontario Teachers Pension Plan. BlackBerry fell 27 cents to $8.51.
In earnings news, AGF Management Ltd. earned 11 cents per share from continuing operations in the wealth management company's third quarter, or $10.1 million. That was two cents per share below analyst estimates and was flat compared with adjusted diluted earnings of 11 cents per share a year earlier, after excluding one-time charges. AGF gained 13 cents to $12.51.
ON BAYSTREET
The TSX Venture Exchange tacked on 3.09 points to 949.21
Eight of the 14 Toronto subgroups were better by noon, led by gold, up 2.3%, while materials surged 1.7%, and metals and mining perked 1.3%.
The half-dozen laggards were weighed mostly by telecoms, down 1%, while information technology, down 0.5%, and consumer staples, slipping 0.3%.
ON WALLSTREET
Stocks hit all-time highs just a week ago, but concerns over developments in Washington have kept the market from climbing much higher.
The Dow Jones Industrials moved into the green 14.45 points to 15,349. The S&P 500 index moved higher 2.88 points to 1,700.30.
The NASDAQ regained 13.11 points to 3,781.37
Shares of Yahoo edged higher on reports that Chinese Internet company Alibaba is moving forward with an initial public offering in New York. Yahoo is one of Alibaba's top shareholders. Yahoo's stock has surged this year due to speculation about an Alibaba IPO as well as investor enthusiasm for the turnaround strategy of CEO Marissa Mayer.
It's another bad day for J.C. Penney. The stock hit a 13-year low as investors grow increasingly concerned about the future of the iconic American retailer. Several analysts are predicting that it did not have a good back to school shopping season, and that sales continued to plummet in late August and early September.
Investors had already been spooked by reports that J.C. Penney might be seeking to raise more cash through the sale of new stock or bonds.
Going the opposite direction, Facebook stock continued to flirt with the $50 U.S. level, rising more than 1% after a 4% jump to a new all-time high on Tuesday.
BlackBerry shares fell another 4%, still reeling from its announcement earlier this week that its largest shareholder, Fairfax Financial, was leading a group to acquire the troubled company for $9 U.S. a share.
Shares of Carnival also dropped another 4%. The cruise company's stock plunged on Tuesday as well after reporting dismal earnings and a weak outlook.
There are concerns that U.S. lawmakers will be unable to adequately deal with the country's debt ceiling woes, which means the government risks defaulting on its debt next month.
Treasury Secretary Jack Lew warned Tuesday that Wall Street should take the looming debt limit more seriously and wrote in a letter to Congress Wednesday that the debt ceiling would be reached no later than October 17.
Investors also considered the possibility that the U.S. government might shut down on Oct. 1, which could hit economic growth.
On the economic front, durable goods orders rose 0.1%, or more than expected, in August, to a seasonally adjusted $224.92 billion U.S..
And new home sales rose at a faster clip than anticipated last month.
Prices for the 10-year U.S. Treasury grew somewhat, lowering yields to 2.63% from Tuesday’s 2.65%. Treasury prices and yields move in opposite directions.
Oil prices gained 36 cents to $103.49 U.S. a barrel.
Gold prices gained $19.20 at $1,335.40 U.S. an ounce.
