The Toronto stock market was lower Tuesday as energy stocks declined amid big swings in the price of oil while mining companies fell alongside further drops in copper prices.
The S&P/TSX composite index lost 79.38 points to 14,012.97
The Canadian dollar gained 0.18 cents to 103 cents U.S.
The market failed to find lift from financials even as Bank of Nova Scotia raised its dividend and its earnings beat expectations.
Scotiabank shares were down 88 cents to $59.27 after the bank said Tuesday it was hiking its dividend three cents to 52 cents per share while first-quarter profits rose to $1.17 billion from $988 million a year earlier.
Scotiabank was the last of the big Canadian banks to report results. All reported strong earnings while Scotiabank and TD Bank raised dividends. TD shares shot up 61 cents to $83.49.
The energy sector was down with oil prices little changed from Monday's 29-month high as OPEC ramped up production to make up for the loss of Libyan crude and traders took in rumours of possible moves to end the fighting in the North African country.
Suncor Energy shed $1.94 to $43.63. Talisman Energy Inc. shares were down 22 cents to $23.33 after it said it is selling a 50% interest in its Cypress A play for $1.05 billion to South African chemical and energy company Sasol Ltd.
The two companies are also examining the feasibility in building a plant in western Canada that would convert natural gas to liquids.
The base metals sector fell as copper prices continued to decline on concerns over the high cost of energy and whether it will slow down global growth. The May copper contract on the Nymex lost five cents to $4.28 U.S. on top of a 16-cent plunge Monday.
Teck Resources improved 14 cents to $52.67 while Equinox Minerals lost four cents to $5.46.
Gold prices dipped with Barrick Gold Corp. fading 69 cents to $50.84.
Yamana Gold Inc. plans to join forces in Argentina with two major producers, Xtrata and Goldcorp Inc. The Toronto-based junior mining company says its Agua Rica project will be integrated with an Xtrata-Goldcorp mining operation that’s 35 kilometres away.
Yamana would receive $310 million U.S. in staged payments, plus a revenue stream based on gold sales and retain 12.5% ownership stake of Agua Rica and its shares rose 42 cents to $12.64.
In other corporate news, Quebecor Inc. says it booked net income of $43.5 million in the fourth quarter of 2010, or 68 cents per share. That’s down from the $73.8 million, or $1.15 per share, from a year ago. The Montreal-based media giant says revenue in the quarter was up $55.9 million, or 5.4%, to $1.09 billion and its shares plunged 88 cents to $34.11.
Sobey’s parent Empire Company Ltd. reported that it earned $62.8 million in its third quarter, or 92 cents per share, slightly down from $68.3 million or 99 cents per share a year ago.
Revenues were up to $3.88 billion compared to $3.84 billion. Empire shares declined $1.47 to $51.25.
Shares in oil and natural gas producer Baytex Energy Corp. were down 40 cents at $54.51 as it reported it doubled its fourth-quarter profits to $57.6 million on a jump in revenues and higher production.
ON BAYSTREET
The TSX Venture Exchange subtracted 38.04 points to 2,385.74, while the Nasdaq Canada index deducted 0.42 points to 813.32
In Toronto, the 14 subgroups were divided equally between winners and losers. The gainers were led by real-estate, up 1.1%, telecoms, picking up 0.9%, and information technology stocks advanced 0.7%.
The laggards were weighed mostly by energy issues, down 2.6%, while health-care and gold backtracked 1.1% each.
ON WALLSTREET
In New York, financial shares boosted U.S. stocks Tuesday, with all three major indexes gaining 1% or better.
The Dow Jones industrial average leaped 124.35 points, or 1%, to conclude the session at 12,214.40
The S&P 500 was up 11.69 points to 1,321.82. The tech-rich Nasdaq index regained 20.14 points to 2,765.77
Easing oil prices lent further support. Crude prices retreated following reports that Libyan leader Moammar Gadhafi is working to step down and exit the country safely.
Bank of America sparked a rally in financial shares after CEO Brian Moynihan issued a rosy multi-year outlook at the bank's first shareholder meeting in four years. Moynihan also said the banking giant plans to increase its buyback program and may raise its dividend.
Shares of Bank of America and American Express rose 4% while JPMorgan Chase & Co. rose 3%. The jump in BofA shares is a change of pace for the Charlotte N.C.-based bank. BofA shares have fallen 12% from a year ago, while the S&P 500 is up 16%.
Shares of other retail banks were also higher with SunTrust, USBancorp and Hutchington Bancshares rising 3%.
Investors continue to monitor developments in Libya and the civil war's effect on energy prices.
Shares of major oil drilling and refining names such as Chesapeake Energy and ConocoPhilips dropped 2% while Tesoro shares fell more than 4%.
Urban Outfitters shares plunged 15% after the retailer reported a profit late Monday that widely missed forecasts, saying its margins were hit by increased markdowns.
Shares of Sprint Nextel jumped 4.5%, on reports that the company was in early negotiations with Germany's Deutsche Telekom to sell Deutsche's T-Mobile business to Sprint.
Starbucks began rolling out its new logo Tuesday, as the coffee company celebrates its 40th anniversary this week. Shares rose 1.3%.
Morgan Stanley is considering dropping the Smith Barney name from its brokerage business, according to sources cited in the Wall Street Journal. Shares gained 1.5%.
On the economic front, no major reports were on Tuesday's calendar, but investors will be watching developments out of a meeting between U.S. Treasury Secretary Tim Geithner, European Central Bank President Jean-Claude Trichet and outgoing German Bundesbank President Axel Weber.
The price on the benchmark 10-year U.S. Treasury lost ground, pushing the yield up to 3.54% from Monday’s 3.50%. Treasury prices and yields move in opposite directions.
Oil for February delivery settled back 65 cents to $104.80 U.S. a barrel.
Gold also eased from the prior session's highs, with prices closing down $7.30 to $1,427.20 U.S. an ounce. Gold settled at a record high of $1,434.50 U.S. an ounce Monday, as investors sought perceived safety in the precious metal.
