The Toronto stock market was lower Friday as traders avoided risk going into the weekend amid the possibility of a U.S. government shutdown and BlackBerry turned in a huge quarterly loss and dismal sales figures as expected.
The S&P/TSX composite index was down 13.42 points to greet noon at 12,828.20
The Canadian dollar regained 0.03 cents to 97.02 cents U.S.
BlackBerry lost $965 million U.S. in the second quarter as revenue plunged 49% from the previous quarter and 45% from a year earlier to $1.6 billion U.S., amid dismal sales of its new smartphones. However, the results were in line with company estimates issued last week when BlackBerry announced 4,500 jobs will be cut from its global workforce.
BlackBerry shares gained 10 cents to $8.32 on the Toronto Stock Exchange shortly after trading began. In the U.S., BlackBerry shares added three cents to $8.25 U.S. on the NASDAQ
The TSX benefited from a rise in the gold sector as nervousness about the U.S. budget fight sent December bullion up. Barrick Gold rose 35 cents to $19.43.
The energy sector was flat.
The base metals sector declined while December copper on the Nymex was ahead one cent to $3.32 U.S. a pound. Teck Resources declined 94 cents to $28.35.
Telecoms were also a major weight with Telus Corp. down 53 cents to $34.41.
ON BAYSTREET
The TSX Venture Exchange tacked on 2.43 to 950.56
All but four of the 14 Toronto subgroups were lower by noon, weighed mostly by global base metals, off 1.5%, metals and mining stocks, down 1.3%, and telecoms, sliding 0.9%
The four gainers were spearheaded by gold, up 1%, information technology, surging 0.9%, and materials, ahead 0.4%.
ON WALLSTREET
Political leaders in Washington are not inspiring much confidence lately, keeping investors on the sidelines.
The Dow Jones Industrials moved into noon hour ET down 79.86 points to 15,248.40.
The S&P 500 index fell 7.10 points to 1,691.57. The NASDAQ sifted off 3.97 points to 3,783.46
Markets are on track for a losing week. Stocks were up Thursday, but that was after a five-day losing streak.
Shares of new Dow component Nike jumped 6% and hit an all-time high following quarterly results that beat expectations.
J.C. Penney shares sank 10% on news that the struggling retailer will raise $810 million U.S. via a public offering of 84 million shares. While this money will give J.C. Penney a cash cushion for its attempted turnaround, current shareholders will see their stock diluted.
BlackBerry, which announced plans this week to go private, released dismalearnings Friday morning, including a $965-million U.S. quarterly loss. Still, these losses were widely anticipated, since BlackBerry had pre-announced results late last week. The company's stock rose nearly 2%.
A possible government shutdown and a rapidly approaching debt limit could prevent the government from paying all its bills.
But while stocks have stalled a bit lately, investors aren't exactly panicking. The recent slump comes just a week after the Dow and S&P 500 hit record highs. All three major indexes are still up between 17% and 25% for the year.
Most investors expect Congress will strike a last-minute deal to raise the debt limit.
Prices for the 10-year U.S. Treasury gained ground, lowering yields to 2.61% from Thursday’s 2.64%. Treasury prices and yields move in opposite directions.
Oil prices jumped 57 cents to $103.60 U.S. a barrel.
Gold prices sprang up $15.50 at $1,339.60 U.S. an ounce.
