The Toronto stock market clawed its way back from an earlier tumble by mid-afternoon Thursday as oil and copper prices advanced and investors took in a mixed bag of earnings.
The S&P/TSX composite index erased a 181-point drop from earlier in the session, rising 56.27 points to 13,840.57.
The Canadian dollar erased 0.23 cents to 100.4 cents U.S.
The energy sector was among the strongest groups, helped along by positive news from sector heavyweight Encana Corp.
Encana has reached a deal with PetroChina to work together on a shale natural gas play around the Alberta-British Columbia boundary. The state-owned Chinese firm will invest $5.4-billion for a 50% stake in Encana’s Cutbank Ridge assets. Encana’s shares ran ahead $1.35 to $32.00.
On a negative note for Encana, the Calgary-based company’s fourth-quarter results missed analyst estimates. It reported a $42-million net loss for the fourth quarter. Revenue after paying for royalties was $1.4 billion, down from $1.8 billion a year earlier as market prices for natural gas plunged due to a glut in supply.
Elsewhere in the sector, Suncor Energy gained 64 cents to $41.13.
Copper prices in New York gained momentum and moved up two cents at $4.55 U.S. a pound, still down from last Friday’s latest record close of $4.58 U.S. and the base metals sector was ahead.
Teck Resources started to recover from an earnings disappointment Wednesday that sent its shares falling by over 8%. On Thursday, the miner’s stock was up 54 cents to $58.49 while
Equinox Minerals Ltd. fell 11 cents to $6.57 and First Quantum ran up $4.25 to $134.00.
Among gold issues, Barrick Gold Corp. shed 25 cents to $47.44 while Goldcorp Inc. faded 26 cents to $42.53.
Financials were a weight but the negative showing was largely confined to the insurers. Manulife Financial was down 97 cents to $17.95 as Canada’s largest insurance company handed in a record fourth-quarter profit of $1.79 billion or $1 per share, compared with a profit of $868 million or 51 cents per share in the prior-year period.
Stripping out the effect of equity markets and interest rates, the company earned $692 million — which was below its own projection for earnings between $700 million and $800 million for the quarter. Sun Life Financial backed off 30 cents to $33.46.
The telecommunication services sector lost ground as BCE Inc.’s profit was up sharply in the last quarter, with the telecom and media company’s net income rising by 25.4% to $439 million or 60 cents a share. However, that figure missed analysts estimates by one cent and its shares drifted 45 cents lower to $36.14.
Operating revenues rose slightly to $4.68 billion from $4.65 billion, with most of that generated by BCE’s main subsidiary Bell Canada.
The consumer discretionary sector was off with Canadian Tire Corp. Ltd. shares down $1.51 at $71.49 as the retailer earned $181.1 million or $2.22 per diluted share for its latest quarter, up from $96.2 million or $1.18 per diluted share a year ago. Revenue totaled $2.54 billion, up from $2.44 billion.
In other Canadian earnings news, Thomson Reuters Inc. is raising its quarterly dividend to 31 cents U.S. per share or $1.24 U.S. per share annually. The announcement came as the information services company reported $3.46 billion U.S. of revenue in the fourth quarter, up 3% from the comparable period of 2009. Profit equaled 27 cents of diluted earnings per share, or 43 cents per share on an adjusted basis. Thomson Reuters shares lost $1.10 to $39.96.
Air Canada reported that fourth-quarter profits rose to $134 million, as it booked foreign exchange gains of $111 million. The results compared to a net loss of $56 million a year ago.
For the full fiscal year, Air Canada reported a net profit of $107 million, compared to a loss of $24 million in 2009 and its shares were off three cents to $3.39.
On the economic slate, Statistics Canada reported this morning that the value of building permits increased 2.4% to $5.7 billion in December, following two consecutive months of declines.
ON BAYSTREET
The TSX Venture Exchange slid 5.95 points to 2,347.82, while the Nasdaq Canada index gained 26.05 points to 813.07.
In Toronto, the 14 subgroups were evenly split between gainers and losers. Health-care stocks hurtled 2.2%, while energy gushed 1.2%, followed by a 1.1% surge by metals and mining.
The losing groups were weighed by telecoms, down 1%, while utilities and consumer discretionaries were down 0.8%.
ON WALLSTREET
In New York, equities were moderately lower Thursday after disappointing quarterly reports from Cisco Systems and others, with the losses partly offset by reports that Egypt's president will step down.
The Dow Jones Industrials still trailed breakeven by 10.60 points to close at 12,229.30, ending an eight-session win streak.
The S&P 500 index inched forward 0.99 points to 1,321.87. The tech-rich Nasdaq Composite Index gained 1.38 points to 2,790.45.
Earlier in the day, the Dow and Nasdaq were weighed down by tech company Cisco Systems -- whose shares fell 13.2%. The network equipment maker posted a quarterly profit late Wednesday that fell from year-earlier results, although it beat Wall Street's forecasts.
Cisco's earnings and outlook generally tend to have a heavy influence on both technology stocks and the broader market in general, because it builds several of the components required for the Internet and e-commerce. However, investors noted Cisco's been in turnaround mode for several quarters now.
Also weighing on the Nasdaq were shares of Web tools developer Akamai Technologies, which plunged 14% on a disappointing earnings report.
Despite poor quarterly earnings from the technology sector, markets erased the majority of their losses on reports that Egyptian President Hosni Mubarak will step down later Thursday. However, there was later indication from Egypt's information minister that Mubarak was not leaving office. Mubarak is expected to address his nation later today.
Shares of Credit Suisse fell 7.3%, after the financial services company reported quarterly results that disappointed investors. The bank's asset management division also adjusted its target for return on equity this year, citing the "new regulatory environment."
PepsiCo said fourth-quarter earnings fell 2% to 85 cents U.S. per share, and issued a disappointing outlook. Shares lost nearly 2% in afternoon trading.
Whole Foods stock was up more than 13% after the grocery chain reported first-quarter results that beat expectations, and raised its sales and earnings outlook for the year.
After the closing bell, analysts expect Kraft Foods to report earnings per share of 46 cents U.S. on $13.47 billion U.S. in revenue.
On things economic, the weekly government report showed that the number of Americans filing first-time claims for unemployment benefits fell to 383,000 last week -- the lowest number in two and a half years.
The report was better than expected. Economists surveyed by Briefing.com had forecast 410,000 initial claims.
The federal Treasury budget for January was expected later in the day.
Investors will also keep an eye out for a proposal due Friday from the Obama administration recommending a phase-out plan for Fannie Mae and Freddie Mac, two government-sponsored mortgage backers.
The price on the benchmark 10-year U.S. Treasury eased, upping the yield to 3.71% from Wednesday’s 3.64%. Treasury prices and yields move in opposite directions.
Oil for February delivery eked up six cents to $86.77 U.S. a barrel.
Gold futures for April delivery lost $3 to $1,362.50 U.S. an ounce.
