The Toronto stock market was slightly higher Wednesday, supported by energy stocks as crude oil surged past the $100 U.S. mark for the first time in four months.
The S&P/TSX composite index remained up 27.62 points by lunch hour to 12,256.89.
The Canadian dollar nipped back up again 0.04 cents to 97.98 cents U.S.
The TSX energy sector gained as Suncor Energy gained 52 cents to $32.78.
The December copper contract on the Nymex lost five cents to $3.45 U.S. a pound. First Quantum Minerals gained 69 cents to $19.74.
The gold sector fell as Barrick Gold Corp. faded 46 cents to $52.96.
The industrials sector was also a weight as Canadian National Railways shed 98 cents to $79.30.
Bank stocks were flat as Royal Bank dropped 22 cents to $45.18.
Investors also took in earnings news from two of Canada’s biggest grocers.
Loblaw Companies Limited said its third-quarter profit was up 19.8% from the same time last year, rising to $236 million or 84 cents per share. Revenue at the country’s largest grocery company was also up, growing 2% to $9.7 billion and its shares declined 65 cents to $37.71.
Metro Inc.’s fourth-quarter net earnings dropped 7.8% to $86.1 million as it booked closure costs for the operations of a meat processing plant in Montreal and a grocery warehouse in Toronto. Sales grew to $2.66 billion from $2.56 billion and Metro shares gained 39 cents to $49.89.
In other corporate developments, Canadian gas distributor and oil pipeline company Enbridge Inc. said it will pay $1.15 billion U.S. to buy half ownership in the Seaway crude pipeline system between Texas and Oklahoma from U.S. oil giant ConocoPhillips.
The companies say the move will give Gulf Coast refiners access to more North American crude and help them reduce reliance on imported oil. Enbridge shares gained 18 cents to $35.
Shares of Research in Motion were up 63 cents to $20.17 after brokerage firm Goldman Sachs raised its rating on the shares of the BlackBerry maker to neutral from sell. One Goldman Sachs analyst said in a note to clients that she was upgrading RIM as its current valuation already fairly captures the fundamental concerns surrounding the stock.
The Goldman upgrade comes a day after Northern Securities raised its rating on RIM’s shares to a speculative buy from a sell.
ON BAYSTREET
The TSX Venture Exchange ducked back 2.24 points to 1,645.25, while the Nasdaq Canada index inched up 0.31 points to 413.28
All but three of the 14 Toronto subgroups regressed, weighed by global base metals, off 1.4%, telecoms, down 0.8%, and health-care, 0.6% less robust.
The three gainers were energy, ahead 1.7%, information technology, edging up 0.2%, and financials, 0.1% richer.
ON WALLSTREET
In New York, investors did pay attention to some auspicious U.S. economic reports released Wednesday, which helped to buffer the slide in stock prices.
Reports indicated a rise in confidence among homebuilders for the second straight month and that industrial production jumped more than expected.
The Dow Jones Industrials remained negative 75.98 points by noon to 12,020.20
The S&P 500 skidded 7.56 points to 1,250.25, while the Nasdaq Composite Index moved down 16.21 points to 2,669.99.
Bank stocks remained under pressure as investors continue to question how Europe's sovereign debt crisis could affect financial institutions. Shares of Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, and Jefferies were among the markets' biggest laggards.
Target reported quarterly earnings before the opening bell that blew past expectations, with same-store sales rising 4.3%.
Shares of Abercrombie & Fitch slid after the apparel retailer posted an increase in quarterly earnings that widely missed expectations. The company said its results were impacted by higher costs and economic uncertainty.
After the market close Tuesday, Dell reported solid profits but poor sales results for the previous quarter, causing share prices to dip.
Mario Monti assumed the premiership in Italy Wednesday, and he was scheduled to present his new government later in the day. In Greece, Prime Minister Lucas Papademos faced a vote of confidence for his new government.
Ahead of these developments, the same uncertainty over whether the new governments will help the euro-zone dig itself out of debt continued to hang over the market.
Italy's 10-year bond yield topped 7% Tuesday, following a lackluster reading on third-quarter euro-zone economic growth. That level -- which Italian bonds breached for the first time last week -- is a benchmark that makes traders nervous, because Greece, Portugal and Ireland passed it shortly before receiving bailouts.
Meanwhile, the 10-year bond yield for Spain, another of the troubled economies in Europe, jumped as high as 6.3%. French yields also rose, raising concerns that the debt crisis is spreading to the euro-zone's core.
Economically speaking, inflation crept lower in October, the government reported Wednesday.
Consumer prices rose at a 3.5% annual rate in October, due to declines in energy costs. Analysts expected inflation for the month to stay flat.
Core inflation, excluding volatile food and energy prices, ticked up 0.1% in October, after rising the same amount in September. The increase was in line with expectations.
Elsewhere, October industrial production increased by 0.7%, beating expectations.
The price on the 10-year Treasury gained, driving the yield down to 2.01% from Tuesday’s 2.06%. Treasury prices and yields move in opposite directions.
Oil for October delivery was boosted $2.46 to $101.83 U.S. a barrel
Gold futures for December delivery fell $10.70 to $1,761.50 U.S. an ounce.
