The Toronto stock market was solidly in the red Wednesday afternoon after more worrisome economic data out of the U.S. and growing crude inventories put downward pressure on oil prices.
The S&P TSX Composite Index finished the day just shy of breakeven, losing 20.06 points to 11,696.63.
Shares in Husky Energy were down $1.15 or 4.4% to $25.24 after the company reported a profit of $266 million, down from a year-earlier $430 million.
Base metals shares slipped even as the September copper contract on the Nymex gained 3.9 cents to $3.25 U.S. a pound. Ivanhoe Mines fell 74 cents to $17.95
Shares in Teck Resources lost 64 cents to $35.26 after the miner reported a big drop in its second-quarter profit to $260 million compared to $570 million a year ago, when the company recorded a large foreign exchange gain.
Gold shares gained as Goldcorp Inc. added 16 cents to $40.35.
The financial sector was flat. Shares in Royal Bank of Canada gained 55 cents to $53.95
Investors have been trying to balance strong earnings and corporate outlooks with economic data that has largely shown the recovery is slowing and growth will remain weak.
Meanwhile, the operator of Canada’s largest stock exchange, TMX Group Inc. reported a two per cent increase in net income to $47.6 million, while revenue increased by three per cent. Shares in TMX lost 48 cents to $28.84.
Torstar Corp. said the strong Canadian dollar limited its revenue growth in the second-quarter but its overall results were encouraging. Net income was $22.7 million compared to a $4.4-million loss a year ago. Shares in Torstar fell 32 cents or 3.1% to $10.00.
A major pipeline leak in Michigan overshadowed quarterly results from Enbridge Inc. The pipeline company said its net income dropped to $138 million from $393 million a year ago. Shares in Enbridge lost 92 cents to $50.63.
Canadian Pacific Railway Ltd. reported a 20% increase in revenue to $1.2 billion, while net income grew 23% to $166.6 million. Shares in CP gained 76 cents to $60.58.
Sherritt International Corp. said its profit dropped 36% to $15.7 million after a large foreign-exchange loss. Sherritt’s stock lost 27 cents or 3.8% to $6.80.
Lundin Mining Corp. said its second-quarter profits surged to US$75.6 million, aided by $27.9 million in net proceeds from the sale of its shares in Chariot Resources. Lundin’s stock gained a nickel to $3.96.
And Casey’s General Stores’ board has formally rejected a sweetened takeover offer from Alimentation Couche-Tard and responded with a plan to spend $500 million U.S. buying back its own stock. Shares in Couche-Tard added 53 cents to $21.84.
The Canadian dollar lurched backward 0.17 cents to 96.37 cents U.S.
ON BAYSTREET
On the day, eight of the 14 TSX subgroups were down. Telecoms tumbled 1.6%, while energy stocks lost 1.3%, and utilities eased 0.8%.
The half-dozen gainers were led in tandem by gold and consumer staples, up 0.9%, while materials marched ahead 0.8%.
The TSX Venture Exchange garnered 14.36 points by the close to 1,410.62 while the Nasdaq Canada index picked up 13.32 points at 639.37
ON WALLSTREET
In New York, stocks fell Wednesday as a worse-than-expected report on durable goods orders and weaker quarterly results from Boeing and others added to concerns about the pace of the economic recovery.
The Dow Jones industrial average was 39.81 points lower to 10,497.88, ending its winning streak at four sessions.
The S&P 500 index fell back 7.72 points to 1,106.12. The Nasdaq composite index was negative by 23.69 points to 2,264.56.
The surprise drop in durable goods orders and a slide in European markets kept concerns about the U.S. economy front and centre.
Such worries dragged on stocks Tuesday, with the session ending mixed after a drop in consumer confidence offset better-than-expected corporate earnings.
Thanks to a strong July, stocks have erased second-quarter losses, leaving the major indexes all near breakeven for the year. But in order for stocks to make gains, investors need more reassurance that the economic recovery will be sustainable, even if it is weaker than had been hoped during last year's rally.
Dow component Boeing said its second-quarter profit fell from a year earlier, due to less airplane deliveries and defense revenue. The company's weaker quarterly revenue and earnings topped the average forecast of analysts surveyed by Briefing.com. Shares dropped 2.3%.
Comcast reported weaker quarterly earnings and higher revenue, as costs associated with its takeover of NBC Universal were countered by higher advertising revenue. Results on both an earnings and revenue basis were above consensus. Shares of the cable operator gained 1%.
Sprint Nextel posted its first rise in subscribers in three years, but also posted a wider second-quarter loss as it lost more lucrative customers who hold longer-term deals. Shares gained modestly.
ConocoPhilips was one of several oil companies to report a big jump in quarterly earnings and revenue that topped estimates, thanks to a turnaround in refining. Exxon Mobil reports results Thursday.
Aetna and WellPoint both posted better-than-expected profits and boosted their full-year forecasts, but shares fell anyway.
Economically speaking, a report from the U.S. Census Bureau showed that durable goods orders, or goods meant to last three years or more, slipped 1% in June, after falling 0.8% in May.
Economists had expected orders to have risen 1% in June, according to a consensus estimate from Briefing.com.
The U.S. economy continues to improve at a modest pace, according to the latest "Beige Book" report released by the Federal Reserve in the afternoon. Economic activity held steady or improved in 10 of the 12 districts, the central bank said.
Treasury prices inched higher, lowering yields on the 10-year note to 3% from Tuesday’s 3.05%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil was down 69 cents to $76.81 U.S.
Gold prices regained five dollars to $1,166 U.S. an ounce.
