The Toronto stock market was virtually unchanged at Thursday’s open amid data showing a deepening contraction of the Chinese manufacturing sector and earnings from Canadian corporate heavyweights including grocer Loblaw and coffee chain Tim Hortons
The S&P/TSX composite index was positive 19.87 points to begin the session at 14,139.60. The index has scored 11 straight winning sessions.
The Canadian dollar dropped 0.02 cents to 90.25 cents U.S.
Traders will also focus on TransCanada after the pipeline company’s Keystone XL project suffered a major setback in a Nebraska court.
A judge on Wednesday overturned a state law that could have forced landowners to allow the pipeline through their property. The state will appeal the decision, which could force TransCanada to either draw up a new route or seek permission from all landowners.
TransCanada shares began Thursday down 53 cents to $49.37.
In earnings news, Loblaw reported $183 million or 65 cents per share of adjusted net earnings in the fourth quarter, down 1.1% from a year earlier but 10 cents above the general estimate. Revenue was up 2.3% to $7.64 billion, also better than expected. Same-store sales, an important measure in the retail industry, edged up 0.6% compared with a year earlier. Shares in the grocer hiked $2.23, or 5.3%, to $44.51.
Tim Hortons posted net earnings of 69 cents a share, up from 65 cents a year ago but below analyst estimates of 77 cents. Revenue was up 10.7% to $898.5 million. The company also said it is raising its quarterly dividend by about 23% and spending up to $440 million over the next year to buy back its shares. Tim shares gained 85 cents to $58.79 soon after the opening bell.
On the economic front, Statistics Canada reported that in December, 514,200 people received regular Employment Insurance benefits -- little changed from November. The number of beneficiaries has been relatively stable since May 2013, following a long-term downward trend that began in the summer of 2009.
ON BAYSTREET
The TSX Venture Exchange was positive 0.01 points to 1,005.89.
All but three of the 14 Toronto subgroups were positive at the outset, with gold leading the way, up 1.6%, consumer staples, ahead 1.2%, and materials stronger by 1.1%.
The three laggards were utilities, down 1.6%, while health-care and telecoms each subsided 0.4%.
ON WALLSTREET
Investors are still mostly sitting on their hand. Stocks were flat Thursday despite lackluster reports on the global economy.
The Dow Jones Industrial Average shed 24.41 points to open at 16,016.15
The S&P 500 index subsided 1.32 points to 1,827.43. The NASDAQ fell 4.14 points to 4,233.81
In corporate news, Facebook shares edged lower after the social networking company said Wednesday it had bought messaging platform WhatsApp for $19 billion U.S. in cash and stock.
Despite the eye-popping price tag, analysts say the deal makes sense. WhatsApp gives Facebook access to the global text-messaging market, which should help the social network retain its younger users. Goldman Sachs said they believed the acquisition "will help drive increased engagement."
The deal raised speculation that other companies with text-messaging services might be able to cash in as well. Shares of the troubled smartphone maker BlackBerry, which operates the BBM messaging service, were up more than 5%.
Tesla shares soared to a new all-time high after the company reported much stronger than expected profits and said it will sell 55% more vehicles this year than in 2013.
Shares in BAE Systems were down after the defense contractor warned that U.S. budget cuts would hurt earnings in 2014.
Safeway shares gained after the supermarket chain's management announced they are in talks to sell the company.
Wal-Mart reported quarterly results that topped expectations, but shares of the retail chain fell after it warned that "economic factors" would weigh on sales this year.
Hewlett-Packard, Groupon and Priceline.com are among the companies reporting earnings after the bell.
On the economic front, the U.S. government said the consumer price index, the benchmark for inflation, rose 0.1% in January, which was slightly below what economists had predicted. Meanwhile, initial claims for unemployment benefits fell last week.
Prices for 10-year U.S. Treasuries, lost a little ground, lifting yields to 2.74% from Wednesday’s 2.73%. Treasury prices and yields move in opposite directions
Oil prices docked four cents to $103.27 U.S. a barrel.
Gold prices dipped $7.80 to $1,312.60 U.S. an ounce.
