The Toronto stock market was little changed Tuesday afternoon with investors unwilling to bid resource stocks higher despite commodity prices which advanced in the wake of strong Chinese economic data.
The S&P/TSX Composite Index gave back 35.07 points to end the session at 13,642.06
The Canadian dollar gained 0.46 cents to 104.40 cents U.S.
China’s global trade surplus widened to $11.4 billion U.S. in April as import growth fell amid government efforts to cool an overheated economy and exports rose by nearly 30%
The gap exceeded private sector forecasts of $5-$10 billion U.S. and was a strong rebound after China reported a rare trade deficit in the first quarter of this year. Analysts also viewed the data as positive for the global growth outlook but noted that investors were disinclined to bid up energy and mining stocks following steep losses in oil and metals last week.
The July copper contract on the New York Mercantile Exchange closed up three cents at $4.04 U.S. a pound. China is the world’s biggest consumer of the metal and the base metals sector was down with Teck Resources down 81 cents to $48.15 while Taseko Mines rose 14 cents to $5.04.
Traders will also be anxiously eyeing the latest inflation data from China Wednesday. Inflation has been stubbornly high and China has made several moves to slow the economy to control high prices, especially for food.
Among oil issues, Canadian Natural Resources moved down 74 cents to $41.40 while Suncor Energy was flat at $40.61.
In the gold sector, Barrick Gold Corp. faded 41 cents to $45.55 and Goldcorp Inc. shed 69 cents to $47.66.
Financials supported the Toronto market as CIBC climbed $1.17 to $82.73 and National Bank gained 94 cents to $79.34.
In earnings news, Northgate Minerals Corp. reported first-quarter profit of $19.8 million U.S., an increase from $3.9 million a year earlier. Revenues slipped to $123 million U.S. from $125.3 million. The company also announced that president and CEO Ken Stowe will retire once a successor is found. Its shares were up 11 cents to $2.75.
Packaged ice producer Arctic Glacier Income Fund widened its first-quarter loss to $35.6 million from a loss of $16 million a year ago. Loss per unit was 91 cents versus a loss of 41 cents in the same period a year ago. Sales in the first quarter were unchanged from a year ago at $22.3 million and its units fell 16 cents to $1.47.
Hardware retailer Rona Inc. tumbled to a first-quarter loss of $16.8 million as it continues to face a difficult operating environment caused by waning consumer confidence, decreased housing starts and reduced consumer spending. Its shares dropped $1.04 or 7.8% to $12.22.
Elsewhere on the corporate front, former Ontario Premier Mike Harris has been named chairman of auto parts maker Magna International. Harris, who had been lead director at the company, takes over the post despite criticism of his handling of a controversial deal to buy out Magna founder Frank Stronach last year. Magna shares were down 54 cents to $50.02.
ON BAYSTREET
The TSX Venture Exchange nosed up 6.33 points to 2,126.08 while the Nasdaq Canada index moved forward 4.37 points to 687.30
In Toronto, eight of the 14 subgroups were down on the day. Gold stocks fell 1.1%, while materials slid 1% and the metals and mining group doffed 0.7%.
Health-care stocks were the most robust of the six gainers, moving up 1.4%, information technology stocks surging 0.9%, while telecoms nipped ahead 0.4%
ON WALLSTREET
In New York, stocks enjoyed a third straight day of gains Tuesday, with the technology sector getting attention after Microsoft agreed to buy Skype for $8.5 billion U.S.
The Dow Jones industrial average added 75.68 points to close at 12,760.40
The S&P 500 gained 10.87 points to 1,357.16. The Nasdaq Composite Index added 28.64 points to 2,871.89
Beyond the latest deal news, solid corporate earnings reports, along with some decent economic data, were lending support.
Shares of Intel and Cisco led the Dow higher, while Microsoft was the biggest drag on the blue-chip index.
Shares of eBay, which owns a 35% stake in Skype, rose 3% in midday trading.
Outside of technology, shares of Dean Foods surged 12%, after the dairy company easily trounced earnings expectations and raised its outlook, citing improving demand
Shares of Intercontinental Hotels, which owns Holiday Inn, rose 4% after the company reported a 30% jump in profit.
Investors also focused on U.S. import-export data, wholesale inventories and quarterly home prices, as well as the strong Chinese trade report.
Early Tuesday, the Chinese government said China's trade surplus surged to $11.43 billion U.S. in April, growing for the second month in a row.
While stocks continue to move higher, there are signs that Wall Street is becoming more defensive. Utilities were among Tuesday's top performers, with companies such as ConEd, Pacific Gas & Electric and American Electric Power all up at least 1%. Healthcare stocks, another defensive sector, were also doing well.
Cisco shares rose 2% ahead of its quarterly results on Wednesday after the closing bell.
Analysts are looking for the telecommunications and router company to earn 37 cents a share.
JA Solar shares rose 6% after the solar energy gear maker reporting a profit of 41 cents U.S. a share -- well ahead of the 32 cents U.S. a share analysts had expected.
Google unveiled its cloud-based music service on Tuesday, which will allow users to upload music for later streaming.
Dow component Disney will report after the closing bell Tuesday. Analysts expect the media giant to post a profit of 56 cents U.S. a share.
On the economic front, the price of imports into the United States increased 2.2% in April, while exports only advanced 1.1%, according to a report released Tuesday morning by the U.S. Labor Department.
The Commerce Department said wholesale inventories rose 1.1% in March, basically in line with economists' forecasts.
Elsewhere, U.S. home prices continued their sharp drop during the first three months of the year, according to a report by the National Association of Realtors. The average price on a single family home in the U.S. now stands at $158,700 U.S., down 4.6% from a year ago.
The price on the benchmark 10-year U.S. Treasury fell back, boosting yields to 3.20% from Monday’s 3.14%. Treasury prices and yields move in opposite directions.
Oil for June delivery faded 20 cents to $103.68 U.S. a barrel.
Gold futures for June delivery rose $15, or 2.2%, to $1,518 U.S. an ounce.
Silver futures for July delivery gained $1.50, or 4%, to $38.66 U.S. an ounce.
