The Toronto stock market was down slightly Wednesday as investors took in sluggish expansion of the U.S. services sector last month.
The S&P/TSX Composite Index ended the day off 17.88 points to 11,390.46, after U.S. manufacturing and housing data had pushed the main index up about 300 points over the past two sessions
The base metals sector declined as March copper moved 11 cents lower to $2.98 U.S. a pound. Teck Resources declined 98 cents to $36.72 while First Quantum Minerals fell $6.75, or 8.3%, to $74.79.
The telecom sector was down with Rogers Communications Inc. down 41 cents to $33.02. The stock also moved lower Tuesday after Goldman Sachs Group Inc. added the company to its "conviction sell" list on expectation the company’s growth will slow "for the foreseeable future."
The financials sector was also a drag, with Bank of Montreal down 36 cents to $52.85.
Investors also continued to take in earnings from the energy industry.
Calgary-based pipeline operator Enbridge Inc. reported that its fourth-quarter net earnings increased 14% to $300 million or 80 cents a share before adjustments. The showing missed estimates by a penny a share.
Enbridge also announced its pipeline system has been chosen to carry production from the Leismer oilsands project owned by Statoil Canada Ltd. The Statoil Leismer project will become the sixth to use Enbridge’s regional oilsands system, an important element in getting energy from northern Alberta to users. Enbridge shares rose 83 cents to $47.72.
Imperial Oil Ltd. reported that its profits dropped by 19% during the final quarter of 2009 compared with the previous year, with the biggest challenges coming from the refining and marketing part of its business.
Imperial reported Tuesday after markets closed that it earned $534 million, or 62 cents per share. That came in below the expectations of seven analysts polled by Thomson Reuters, who on average had been expecting earnings of 71 cents per share. Imperial shares were down 49 cents to $38.96.
Suncor shares lost 14 cents to $32.71, two days after the Calgary-based oil and gas company issued a disappointing earnings report on Monday.
The gold sector was off as the April bullion contract on the Nymex moved down. But Kinross Gold Corp. gained 19 cents to $18.44.
The Canadian dollar slid 0.35 cents to 94.14 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, 10 were pointed downward at the closing bell. Metals and mining fell 3.9%, global base metals were off 2.1%, and the telecom sector ditched 0.9%.
The four gainers were led by consumer staples and information technology, ahead 0.4% each, and energy stocks, moving up 0.3%.
The TSX Venture Exchange was 3.09 points off at 1,513.98, while the Nasdaq Canada index was ahead 15.10 points to 731.23.
ON WALLSTREET
In New York, issues slipped Wednesday, falling after a two-session rally, amid weakness in banks, concerns about Toyota and questions about the outlook for the labour market.
The Dow Jones industrial average subsided 26.30 points to 10,270.55. The S&P 500 index slid 6.04 points to 1,097.28. The Nasdaq composite regained 0.85 points to 2,190.91.
Stocks started the first two days of February with a rally, following a January slump that was Wall Street's worst month since February 2009.
Worries about China's bank lending curbs and the Obama administration's plans to restrict bank trading led the January selloff. But investors may also be pleading exhaustion after a big rally in 2009, in which the S&P 500 gained 23.4%.
Meanwhile, investors are looking for more indications that a recovery is taking hold, after pushing stocks higher last year in anticipation of such a rebound.
Among stock movers, financial shares slipped, with the KBW Bank sector index falling 2%. Wells Fargo lost 2% and a number of the regional banks declined as well, including Fifth Third Bancorp, Regions Financial and SunTrust.
Dow component Pfizer reported higher quarterly earnings that missed estimates on higher revenue that topped estimates. The drugmaker, which finished its $67-billion U.S. purchase of fellow drugmaker Wyeth in October, also forecast 2010 earnings that are short of analysts' estimates.
Looking out further, Pfizer forecast 2011 revenue that is in line with estimates and 2012 revenue that is short of its forecast from a year ago. Shares fell 3%.
Time Warner reported sales and earnings that rose from a year ago, in its first quarterly report without AOL in a decade. The media company benefited from strength in its TV and movie divisions, as well as some cost cutting at its Time Inc. brand. Time Warner also raised its dividend.
AOL -- in its first quarter in a decade as a stand-alone Internet company -- said it swung to a profit of $1.4 billion U.S. from a loss of $1.9 billion U.S. a year ago. Shares were little changed.
News Corp. reported quarterly earnings and revenue after the close Tuesday that jumped from a year earlier and topped expectations. Shares gained 5% Wednesday morning.
Shares of Toyota slumped after Department of Transportation Secretary Ray LaHood told a Congressional panel that owners of recalled Toyotas should stop driving them and take them to a dealer for repairs.
On Monday, the automaker said it will fix millions of gas pedals in recalled vehicles, eliminating a problem that caused the pedals to stick, which prompted the recall of 2.3 million vehicles in the United States. Toyota also recalled over five million vehicles due to risks that floor mats could become stuck on floor pedals.
The company is also now facing numerous complaints about brake problems in its 2010 Prius.
Two reports on employment came out before U.S. markets opened Wednesday.
Outplacement firm Challenger, Gray & Christmas reported that January job cuts surged to a five-month high of 71,482. But the ADP payroll report showed a decline in job cuts, to a loss of 22,000 jobs in January, compared to the revised loss of 61,000 jobs in December.
Thursday brings the weekly jobless claims report, while Friday brings the big monthly report.
Elsewhere in economic news, a report showed the nation's private sector employment fell smaller than anticipated in the month of January. According to the data released by Automatic Data Processing, Inc. on Wednesday, the non-farm private employment fell by 22,000 jobs in January, less than economists' expectation for a decrease of 30,000 jobs
In a separate report, the Institute for Supply Management said its service sector index rose to 50.5 in January from a downwardly revised 49.8 in December, versus economists' expectations for an increase to 51.0 from the originally reported 50.1 for the previous month. A reading above 50 indicates growth in the sector.
Treasury prices dipped, raising the yield on the 10-year note to 3.70% from Tuesday’s 3.63%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slipped 30 cents to $76.93 U.S.
Gold prices backtracked six dollars to $1,112 U.S.
