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Mar. 9, 2010 (Baystreet.ca) --
Canadian stocks began another lackluster session Tuesday as the prices of commodities ticked lower in morning deals.
The S&P/TSX composite index lost 28.16 points in the first half-hour of business to 11,935.68.
With a light economic calendar this week, traders are is likely to look to the movements in commodity prices and earnings reports from corporations.
However, financial stocks could support the main index after Scotiabank, in line with most other major banks, reported improved quarterly income that beat consensus estimates.
In corporate news, Scotiabank reported that its earnings improved to $0.93 a share in the first quarter from $0.82 in the year ago period. Analysts were expecting the bank to report a net income of $0.87 per share.
Earlier this month, Toronto-Dominion Bank said its quarterly net income nearly doubled and RBC reported over 30% jump in its earnings.
Gold and copper explorer Northgate Minerals slipped to loss in fourth-quarter reporting net loss of $0.23 per share, as against a profit of $0.07 per share in the prior-year period. Analysts were expecting the company to report earnings of $0.03 per share for the quarter.
Oil and gas explorer NuVista Energy reported lower fourth-quarter net earnings of $0.12 per share, compared to $0.31 per share last year.
Oil and gas company Pengrowth Energy Trust reported a huge decline in its fourth-quarter profit at $0.18 income per trust unit compared to $0.58 in the prior year.
Aerospace and transportation equipments maker Bombardier Inc. has decided to withdraw its proposed institutional private placement of new senior notes, due to the current unfavourable conditions in the debt capital markets.
Software services provider Enghouse Systems posted first-quarter net income of $0.08 per share compared with $0.03 per share in the previous year period.
Communications network services provider Prestige Telecom said it will be acquiring all the issued and outstanding shares of Majetel Inc and believes this will be immediately accretive to Prestige.
Agriculture and construction equipments dealer Rocky Mountain Dealerships swung to profit in fourth quarter, reporting net earnings of $0.35 per share, compared to a net loss of $7.34 per share in the year-ago period.
In brokerage updates, Raymond James trimmed its price target on Quadra Mining to $35 from $38. UBS cuts its rating on Bombardier Inc. to "neutral" from "buy".
The Canadian dollar progressed 0.15 cents to 97.45 cents U.S.
ON BAYSTREET
All but five of the 14 TSX subgroups were lower. Global base metals stumbled 1%, while metals and mining stocks were 0.9% lower and materials were off 0.8%.
The gainers were led by utilities, up 0.2%, while consumer discretionary and staple stocks added 0.1% each.
The TSX Venture Exchange gave back 2.97 points to 1,558.96, while the Nasdaq Canada index added 7.40 points to 793.69.
ON WALLSTREET
In New York, stocks churned Tuesday as investors were cautious following several weeks of gains and ahead of some key economic reports due out later in the week.
The Dow Jones industrial average picked up 10.35 points out of the starting blocks to 10,562.87. The S&P 500 index crept up 0.02 points to 1,138.52, and the Nasdaq composite ran ahead 3.77 points to 2,335.98, on top of yesterday's 18-month high.
Stocks ended little changed Monday after AIG sold its American Life Insurance unit to MetLife in a $15.5-billion U.S. cash-and-stock deal. Typically, such deals would spark a bigger stock market advance, but investors were wary after pushing stocks higher for three of the last four weeks.
Tuesday marked the one-year anniversary of what is widely considered the bear-market low, when the Dow and broader S&P 500 finished at their lowest level in 12 years.
Stocks have recovered since then, but investors remain wary about which way markets will go.
Those concerns caused U.S. stocks to drift Monday. Wall Street finished the session barely changed, although the tech-heavy Nasdaq ended at its 18-month high.
With little in the way of economic news until unemployment claims and retail sales come out later this week, markets will once again take their cues from the commodities markets
Northrop Grumman pulled out of a bid late Monday to supply the U.S. Air Force with tanker planes, putting Boeing one step closer to snaring the contract that could be worth up to $50 billion U.S.
Merck and French drug maker Sanofi-Aventis announced plans to create one of the world's largest animal health-care businesses.
Treasury prices moved slightly upward, lowering the yield on the 10-year note to 3.69% from Monday's 3.70%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil dropped 86 cents to $81.01 U.S.
Gold prices slid eight dollars to $1,116 U.S.