Equity markets in Toronto slipped on Friday as grim domestic economic news and prospects for another interest rate cut weighed on financials, offsetting strength in gold stocks and a surge in drug maker Valeant Pharmaceuticals International as it closes in on a deal to buy Salix.
The S&P/TSX composite index turned negative 18.52 points to pause for noon Friday at 15,161.81
The Canadian dollar fell 0.07 cents to 79.96 cents U.S.
The heavyweight financial sector fell, with Royal Bank of Canada down 1.7% to $75.92 and Toronto-Dominion Bank shedding 1.3%to $53.75.
Shares of Bombardier slipped 2.5% to $2.39, and Fairfax Financial Holdings fell 4.7% to $657.50 after each said it was issuing new equity.
Barrick Gold stock gained 1.5% to $16.27 after the company's chairman on Thursday outlined a leaner strategy. Fellow gold miner Goldcorp Inc added 2.4% to $27.29.
Shares of Valeant rose 2.6% to $216.42 on reports it was close to a deal to acquire bowel drug maker Salix Pharmaceuticals Ltd for about $160 per share.
Economically speaking, Statistics Canada reported this morning retail sales for December flopped 2% to $42.1 billion, the biggest decrease in nearly five years. The agency reported lower sales in nine of 11 sub-sectors, representing 71% of retail trade.
ON BAYSTREET
The TSX Venture Exchange remained positive 5.32 points to 697.35
Nine of the 14 Toronto subgroups were up by midday, with gold stronger by 1.8%, health-care haler by 1%, and materials 0.5% to the good.
The five laggards were weighed most by financials, down 1%, metals and mining, sinking 0.3%, and global base metals, off 0.2%.
ON WALLSTREET
U.S. stocks traded narrowly mixed on Friday as investors saw greater possibility of a Greece debt resolution after earlier trading lower ahead of the Eurogroup meeting.
The Dow Jones Industrials regained 14.23 points to greet noon at 18,000 even. Coca-Cola was the greatest laggard and Boeing traded at all-time highs to lead blue-chip advancers.
The S&P 500 remained negative 1.64 points to 2,095.81, with utilities the greatest laggard and industrials leading advancers.
The NASDAQ index eked up 3.63 points to 4,928.33.
Deere said it earned $1.12 U.S. per share for its latest quarter, well above the 83-cent U.S. consensus estimate, with revenue also beating forecasts. However, the farm machinery manufacturer highlighted difficult global market conditions and said it expected a 17% drop in equipment sales for 2015.
Barclays downgraded Wal-Mart to equal weight from overweight saying the retailer is unlikely to see near-term benefits from its just-announced increase in wages that offset the higher expenses.
Newmont Mining earned an adjusted 17 cents U.S. per share for its latest quarter, seven cents above estimates, with its revenue also beating forecasts. Newmont said its "growth projects" are doing particularly well.
The Noodles restaurant chain missed estimates by a penny with adjusted quarterly profit of 13 cents U.S. per share, with revenue falling just below estimates as well. It also cut its full-year guidance, as same-restaurant sales growth fails to meet prior forecasts.
The Markit PMI Manufacturing flash was 54.3, up from 53.9 in January and the highest reading since November but weaker than the 55.9 average for all of 2014. The data also showed production levels rose at their fastest pace in four months.
The Eurogroup of regional finance ministers met on Friday to discuss Greece's loan extension proposal. Germany rejected the plan on Thursday and called it a "Trojan horse." A decision was expected some time on Friday.
Greece faces the risk of default and exit from the euro-zone if the country does not obtain enough funding or an extension beyond the Feb. 28 deadline.
Prices for 10-year U.S. Treasuries grew stronger, dropping yields to 2.06% from Thursday’s 2.11%. Treasury prices and yields move in opposite directions.
Oil prices retreated 43 cents per barrel to $50.73 U.S.
Gold prices gave back a dollar an ounce to $1,206.60 U.S.
