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Jan. 26, 2010 (Baystreet.ca) --
Strong consumer confidence data from the U.S. helped send the Toronto stock market higher mid-afternoon Tuesday amid investor worry about global economic conditions.
The S&P/TSX Composite Index wallowed through much of the afternoon, but put on enough of a spurt at the end to finish up 6.68 points to 11,361.19
The gain followed a slight, 11-point gain Monday which followed a three-day selloff that carved almost 3% from the main index.
The financials, depressed by U.S. President Barack Obama's announcement last week that Washington would clamp down on bank risk-taking, posted gains as Royal Bank advanced 54 cents to $53.25 and Bank of Montreal added 70 cents to $53.35.
Tech stocks were right behind as Research In Motion Ltd. ran ahead 53 cents to $65.43.
The gold sector was also strong, as Barrick Gold was ahead 23 cents at $38.30, while Goldcorp Inc. improved 33 cents to $38.59.
The base metals sector was off as the March copper contract on the Nymex stepped back five cents to $3.35 U.S. a pound. Labrador Iron Mines Holdings dropped $1.00 to $4.60.
First Quantum Minerals Ltd. shares drifted $3.37 lower to $84.93 after it said it had restarted the Bwana Mkubwa copper plant in Zambia and expected to run it at least until the end of this year. The plant had been idled in October 2008 due to a lack of feedstock.
In the energy sector, Suncor Energy lost 10 cents to $35.03 and EnCana Corp. fell 62 cents to $33.75.
There was also some major corporate deal-making in Canada. World Color Press Inc., the Montreal-based printing giant formerly known as Quebecor World, has agreed to be taken over by Quad/Graphics Inc. in order to create a combined company with 30,000 employees.
Quad/Graphics Inc. is currently the largest privately held printer in the United States but plans to go public in connection with the World Color takeover. World Color shares jumped $2.63 or 26.6% to $12.65.
Elsewhere on the corporate front, shares in Nuclear medicine company MDS Inc. were off 14 cents to $8.00 after the company said it would cut 150 jobs in Toronto as it moves its headquarters to Ottawa and eats $21 million of severance charges -- including $7 million for its former chief executive officer.
The Canadian dollar was off 0.39 cents to 94.11 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, eight were lower on the day. Metals and mining stocks were the worst off, dropping 2.2%, while global base metals settled 1.9%, and utilities were down 0.9%.
Of the half-dozen gainers, information technology led the pack, picking up 1%, followed by consumer staples, gaining 0.6%, while gold was ahead 0.5%.
The TSX Venture Exchange faded 12.98 points to 1,533.87, while the Nasdaq Canada index inched up 0.79 points to 682.69.
ON WALLSTREET
In New York, equities struggled Tuesday afternoon as a late-session selloff in the financial sector cut into an earlier rally that had been sparked by Apple's record quarterly results and a stronger reading on consumer confidence. After the close, Yahoo reported quarterly earnings and revenue that topped estimates. Shares slipped after hours.
By the close, the Dow Jones Industrials dipped 2.57 points to 10,194.29. The S&P 500 was 4.61 points lower to 1.092.17, and the Nasdaq dropped back 7.07 points to 2,203.73.
After seesawing through the early morning, stocks turned higher near midday, thanks to gains in financial and consumer shares. But the advance petered out by the end of the session.
Financials led the retreat, with the KBW Bank index falling 2.2%.
Stocks mustered slim gains Monday as fears about the bank sector lessened, along with opposition to Federal Reserve Chairman Ben Bernanke serving for a second term.
Investors are still climbing back after last week's battering, in which the Dow, S&P and Nasdaq all plunged 5% in the last three sessions of the week.
Although Apple provided investors with some optimism throughout the session, that wasn't enough to keep stocks higher. The ongoing Fed meeting was also in focus.
The central bank began its two-day policy setting meeting amid ongoing questions about whether the Fed chairman's term will be renewed.
The central bankers are widely expected to hold interest rates steady at historic lows near zero and to signal that they will continue to do so for the time being. A statement is expected Wednesday at around 2:15 p.m. ET.
However, investors will still scour the statement for hints about when the Fed may start to raise interest rates or withdraw some of the trillions of dollars of stimulus it had put into the economy over the last few years.
The combination of sustained low interest rates and more money in the system played a major role in boosting the stock market last year and stopping the recession from becoming a Depression.
With his term set to expire on Jan. 31, questions remain about whether Fed Chairman Bernanke has enough votes in the Senate to force a confirmation vote. However, those worries have lessened this week.
After the close of trading Monday, Apple reported quarterly earnings and revenue that topped estimates, thanks to strong sales of iPhones and Macintosh computers. Quarterly revenue surged to a record $15.7 billion U.S. The company is on track to debut its greatly-anticipated new tablet computer on Wednesday.
Dow component Travelers Companies, the U.S. property-casualty insurer, reported higher quarterly earnings and revenue that beat estimates thanks to strong gains in underwriting and investment. Shares rose 3%.
Chemical maker DuPont reported a profit versus a year-ago loss and a rise in revenue, thanks to improving market trends and cost cutting. Results topped analysts' estimates.
DuPont also boosted its 2010 earnings forecast due in part to an improving economy. Shares of the Dow component were little changed.
Consumer products maker Johnson & Johnson reported weaker earnings and stronger revenue versus a year ago, both of which topped forecasts.
The company also forecast a full-year 2010 profit of $4.85 to $4.95 U.S. per share versus analysts' expectations for a profit of $4.94 U.S. per share, sending the stock a little lower in afternoon trading.
Verizon Communications reported a fourth-quarter loss due to layoff charges. Excluding items, the profit was in line with estimates. The telecom also reported higher revenue that missed estimates. Verizon said it added 2.2 million mobile subscribers, topping forecasts for adds of 1.5 million.
Looking forward, the company said it is seeing a slower-than-expected economic recovery and that it expects to cut 6% of its workforce this year, or around 13,000 jobs.
The Consumer Confidence index, from the Conference Board, rose to 55.9 in January from 53.6 in the previous month, versus forecasts for a reading of 53.5.
A key report that showed prices fell for the first time in seven months. The S&P/Case-Shiller 20-city home price index fell 0.2% in November from October and fell 5.3% from a year ago, in a bigger-than-expected drop.
Treasury prices gained a bit, lowering the yield on the 10-year note to 3.61% from Monday's 3.63%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil stepped back 68 cents to $74.58 U.S.
Gold prices gained three dollars at $1,100 U.S.
