The Toronto stock market was flat Tuesday afternoon amid concerns about whether a U.S. stock rally may be running out of steam and indications of slower than anticipated economic growth prospects.
The S&P/TSX composite index dipped 15.46 points to end Tuesday at 13,442.60
The Canadian dollar subsided 0.38 cents to 95.50 cents U.S.
The TSX is up about 8.5% for the year so far, dragged down by the mining sector. Most other sectors have put in a solid performance, particularly financials, energy companies and industrials -- companies some experts think will take the TSX higher.
Among energy plays, Bankers Petroleum ran up 13 cents to $3.86.
Niko Resources surged 24 cents, or 15,6%, to $1.78, recovering for a second day after plunging more than 50% Friday after it said that it had secured a "very high cost," $340-million loan to avoid defaulting on debt payments and other obligations.
The gold sector advanced, with Kinross Gold moving up nine cents to $5.20.
Financials were also positive as Manulife Financial gained 15 cents to $20.01.
The consumer sector was in focus Tuesday as Sears Canada Inc. stock jumped $1.05, or 6.3%, to $17.85 as the retailer said that it will pay its shareholders an extraordinary dividend of $5 per share. Sears also posted a quarterly net loss of $48.8 million, or 48 cents per share, mainly due to severance and restructuring costs.
Food company George Weston posted earnings ex-items of $1.38 a share, seven cents shy of estimates. Its shares declined 24 cents to $81.21 as the company also said overall sales rose 2.1% to $10.38 billion.
The base metals sector declined, as December copper edged up one cent to $3.16 U.S. a pound. First Quantum Minerals fell 30 cents to $18.55.
In other corporate news, Patheon Inc. has received a friendly takeover offer that values the drug company at about $1.4 billion U.S., which is more than 50% above its recent market price.
The offer of $9.32 U.S. per share cash is coming from a group backed by Patheon's largest shareholder, U.S. private equity firm JLL Partners. Patheon shares surged $3.79, or 63.8%, to $9.73.
ON BAYSTREET
The TSX Venture Exchange moved forward 1.68 points to 923.47
Nine of the 14 TSX subgroups were lower on the day, the group faring worst being information technology, down 1.1%, while health-care trailed Monday’s close 0.9% and telecoms fell 0.6%.
The five gainers were led by gold, up 0.6%, energy, up 0.5%, and consumer staples, up 0.3%.
ON WALLSTREET
Stocks lost a little bit of momentum Tuesday, a day after crossing major milestones for the first time.
The Dow Jones Industrials stepped back 8.99 points from Monday’s all-time high close, to conclude the day at 15,967
The S&P 500 index dipped 3.67 points to 1,787.86. The NASDAQ dipped 17.51 points to 3,931.55.
Federal authorities announced a record $13-billion U.S. settlement with JPMorgan related to the bank's past mortgage practices.
Despite the hefty cost, investors seem to view the settlement as a positive since it resolves long-standing legal issues hanging over JPMorgan. Shares of JPMorgan remained higher after the settlement was announced. Bank of America, Citibank and Wells Fargo also rose.
On the earnings front, Best Buy reported quarterly revenue and profit that beat expectations. But shares tumbled after the electronics retailer said that more promotions during the holiday shopping season could hurt its profit margins.
Tesla shares bounced back after falling sharply on news the National Highway Safety administration opened an investigation into vehicle fires.
Shares of Nokia and Microsoft dipped following reports that shareholders approved Microsoft's planned acquisition of Nokia's mobile phone business.
Urban Outfitters shares slipped after the retailer offered cautious guidance for the fourth quarter.
Campbell Soup lowered its guidance after a weak quarterly report.
Home Depot's rival Lowe's was also up thanks to Home Depot's strong earnings. Lowe's will release its latest results before the opening bell on Wednesday.
With the market trading at all-time highs, there have been growing concerns about whether stocks are overvalued, billionaire investor Carl Icahn the most vocal of those expressing concern.
Prices for 10-year U.S. Treasuries were lower, raising yields to 2.71% from Monday’s 2.68%. Treasury prices and yields move in opposite directions.
Oil prices regained 34 cents to $93.37 U.S. a barrel.
Gold prices were up $1.40 to $1,273.70 U.S. an ounce.
