Blue chips in Toronto closed the session in the red on Wednesday -- with a decline in mining stocks outweighing a jump in tech shares -- as investors appeared to shrug off an array of disheartening economic reports out of the US.
The S&P/TSX composite index was down 30.85 points to 8,296.97.
RIM shares were up $2.44 to $48.90 after it said after the market close Tuesday that it expects to report adjusted earnings of 81 to 83 cents per share for its third quarter ended Nov. 29, on revenue of US$2.75 billion to $2.78 billion. Analysts were expecting 90 cents per share on revenue of US$2.93 billion.
The stock had dropped 7.5 percent Tuesday after a J.P. Morgan analyst warned that smartphone sales to businesses and consumers will fade in the economic downturn.
Meanwhile, RIM on Wednesday announced a $66-million takeover bid for data encryption specialist Certicom Corp.
WestJet Airlines Ltd. flew through last month's financial and economic gloom with a 14.4 percent increase in its passenger traffic compared with a year ago. Canada's second-largest airline said Wednesday it booked its best-ever November load factor with 76.1 percent of its seats filled in the seasonally slack month.
As for economic data -- november US employment figures from Automatic Data Processing showed that 250,000 jobs had been lost that month, more than the 205,000 anticipated by economists. The October unemployment figure was revised to 179,000 from 157,000.
Revised third-quarter productivity numbers from the Department of Labor showed a 1.3 percent reading, above consensus estimates of 0.9 percent and up from 1.1 percent in the second quarter.
The outplacement firm Challenger, Gray & Christmas announced that job cuts by U.S. employers soared to 181,671 in November. This is up 61 percent compared to October's 112,884 cuts, and it is the highest level since 2002.
The Canadian dollar, meanwhile, was trading down 0.03 cent to 79.74 cents US.
BAYSTREET
Four of the TSX sub-groups traded higher today -- tech stocks were up 2.26 percent; financial issues were ahead 1.86 percent and industrial stocks gained 1.73 percent.
On the downside -- mining stocks fell 6.45 percent followed by a 3.68 percent dip in gold issues and a 2.98 percent drop in utility stocks.
COMEX gold for February delivery fell $12.80 to $770.50 US an ounce.
Meanwhile, the TSX Venture Exchange shed 19.26 points to 711.84 and the NASDAQ Canada was up 11.98 points at 396.03.
ON WALLSTREET
In a session of mixed trading, stocks in New York staged a late-hour rally to finish Wednesday with gains, as investors eyed the prospect of a bailout for the automakers and digested several disheartening economic reports.
The Dow Jones Industrial Average gained 172.60, or 2.1 percent, to 8591.69, and the S&P 500 added 21.93 points, or 2.6 percent, to 870.74. The Nasdaq tacked on 42.58, or 2.9 percent, to 1492.38.
Traders were closely watching the automotive sector as the Big Three U.S. car manufacturers continued to petition Congress for emergency funds. Ford and General Motors on Tuesday had presented business plans to Congress in hopes of garnering a federal bailout. General Motors asked for $12 billion in low-interest financing and a $6 billion line of credit, and Ford requested $9 billion in government aid.
GM and Chrysler also said they would need $4 billion and $7 billion respectively just to make it to the end of 2008. GM President and COO Frederick Henderson said that bankruptcy was not an option for his company, and Chrysler vice chairman Jim Press said that a failure by a major automaker could send the economy into a depression.
Toyota, meanwhile, announced it would cut production in December and reduce managers' winter bonuses as it copes with the economic downturn.
In a slightly positive development for the housing market, the Mortgage Bankers Association said that mortgage applications rose substantially in the last week, following a decision by the Fed to purchase as much as $500 billion in mortgage-backed securities tied to Fannie Mae, Freddie Mac and Ginnie Mae.
Separately, Bank of America may reduce its headcount by 30,000 as it merges with Merrill Lynch, according to a report by CNBC.
Marvell Technology swung to a profit in the third-quarter from a loss last year, earnings 23 cents per share, versus forecasts for 21 cents a share. The chipmaker issued a current-quarter revenue forecast in a range that could miss analysts' estimates. But investors focused on the positive and shares rallied 20 percent.
Treasury prices inched higher, with the yield on the benchmark 10-year note holding at 2.69%. Treasury prices and yields move in opposite directions. The yield on the 3-month Treasury bill fell to 0.02 percent from 0.04 percent Tuesday, just above a 68-year low of zero hit last month. The 3-month is seen as the safest place to put money in the short term.
U.S. light crude oil for January delivery fell 17 cents to $46.79 US a barrel on the New York Mercantile Exchange, after the government reported a surprise decline in oil inventories last week. Crude prices ended Tuesday's session at a 3-1/2 year low.
Gasoline continued the fall to nearly four-year lows, with prices down nine-tenths of a cent to a national average of $1.803 a gallon, according to a survey of credit-card swipes released Wednesday by motorist group AAA. Prices have been sliding for 2-1/2 months, and have dropped more than $2 a gallon or 53 percent.
