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Feb. 24, 2010 (Baystreet.ca) --
The Toronto stock market turned was treading water Wednesday as investors balanced a reassurance from U.S. Federal Reserve chief Ben Bernanke that interest rates will stay low with poor housing data from the United States.
The S&P/TSX composite index reached noon ahead 29.99 points to 11,556.70
Centerra Gold Inc. said Tuesday it earned $140 million U.S. in its latest quarter as the miner increased production and a higher price for gold. The Toronto-based company, which keeps its books in U.S. dollars, said the profit amounted to 60 cents per share on $323.9 million in revenue for the quarter. Its shares rose 12 cents to $11.91.
The base metals sector was flat with March copper in New York up two cents at $3.23 U.S. a pound.
Sherritt International Corp. shares climbed 17 cents to $6.90 as the miner reported a $48.3-million profit for the fourth-quarter -- a big contrast to the $592.1-million loss reported a year earlier.
Revenue for the Toronto-headquartered metal, coal and oil producer was little-changed at just under $380 million.
The consumer staples sector was positive after the leading supplier of store-brand carbonated beverages, Cott Corp., reported quarterly net income of $14 million U.S., a turnaround from the $12.1 million U.S. loss a year earlier. Revenue improved by 3.9% to $386 million U.S. and its shares were ahead 13 cents to $8.08.
Market heavyweight Research In Motion Ltd. was also supportive, up $1.19 to $73.39.
In other earnings news, Thomson Reuters Inc. announced Wednesday that it is raising its annual dividend by four cents to $1.16 a share. The information services company says that net income fell to $182 million U.S. or 21 cents a share in the fourth quarter, down from $566 million or 67 cents a share a year earlier.
Overall revenue fell slightly to $3.36 billion U.S. from $3.4 billion U.S. and its shares declined 84 cents to $36.22.
Shares in heavy equipment dealer Finning International Inc. slipped 55 cents to $17.50 after the company said Tuesday it earned $16.3 million in its latest quarter, even as revenue fell 28% compared with a year ago. The Vancouver-based company said it was seeing signs of recovery led by mining. It added its backlog has posted the first increase since 2008.
Maple Leaf Foods Inc. shares were unchanged at $11.20 after the company reported improved profitability in the fourth quarter even though sales dipped slightly to $1.32 billion.
The Toronto-based company says it had net income of $21.9 million or 16 cents per share in the quarter, compared with a loss of $14.6 million or 12 cents a year earlier.
The Canadian dollar was ahead 0.15 cents to 94.84 cents U.S.
ON BAYSTREET
Of 14 TSX subgroups, eight were higher. Global base metals hiked 1%, information technology gained 0.6%, and gold picked up 0.5%.
The half-dozen gainers were weighed by consumer discretionary stocks, down 0.6%, while utilities and industrials slid 0.2%.
The TSX Venture Exchange stumbled 1.24 points to 1,518.75, while the Nasdaq Canada index regained 12.56 points to 743.69.
ON WALLSTREET
In New York, stocks rallied Wednesday, bouncing back after a two-day selloff, as investors weighed testimony from Federal Reserve chief Ben Bernanke and news that the Senate approved a jobs creation bill.
The Dow Jones industrial average was ahead 81.93 points by midday to 10,364.34. The S&P 500 index tacked on 8.72 points to 1,103.32, and the Nasdaq composite added 21.71 points to 2,235.15.
Stocks have fallen so far this week as lackluster forecasts on consumer spending and a plunge in a key measure of consumer confidence exacerbated concerns about the strength of the recovery.
Stocks managed to advance in the previous two weeks as investors focused on the positives in the company and economic news, following a four-week rout.
In his first day of testimony on Capitol Hill, Fed Chairman Ben Bernanke told the House Financial Services Committee that while the economic recovery is underway, the jobs market remains weak.
Bernanke testified before the House Wednesday and was scheduled to appear before the Senate Thursday regarding the state of the economy and monetary policy.
Investors seemed to take in stride last week's announcement from the Fed that it was boosting the discount rate -- the emergency bank lending rate that is rarely used, but is still a part of its monetary policy toolkit.
However, this week they are looking for more info from the Federal Reserve chief on how the bank plans to unwind more of the emergency programs that were put in place at the height of the financial crisis.
In his early statements, Bernanke implied that the Fed will at some point need to raise the fed funds rate, the key bank lending rate, but that such a move is not likely to happen soon, considering the still moderate pace of recovery.
The Senate approved a $15-billion U.S. jobs creation bill that gives businesses tax breaks for hiring the unemployed and extends tax breaks that encourage companies to buy equipment.
Toyota faces Congressional scrutiny for the second straight day, with company president Akio Toyoda speaking before the House Oversight Committee. In prepared statements released Tuesday,
Toyoda said that the rush to expand the company's business led to the safety issues that resulted in the recall of over eight million vehicles.
On Tuesday, witnesses argued that the problems with the brakes could be tied to the vehicles' electronic throttle system.
On the economic front, sales of new homes plunged to a record low in January in the United States, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.
The Commerce Department reported Wednesday that new home sales dropped 11.2% last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half-century. The big drop was a surprise to economists who had expected sales would rebound to an annual rate of 360,000 units.
Treasury prices crept up, lowering the yield on the 10-year note to 3.69% from 3.67% late Tuesday. Treasury prices and yields move in opposite directions.
The price of a barrel of oil gained 93 cents to $79.79 U.S.
Gold prices gave back two dollars to $1,101 U.S.