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Feb. 10, 2010 (Baystreet.ca) --
Canadian stocks may struggle to extend their strong gains from the previous session Wednesday morning in Toronto, with markets on both sides of the border trying to make sense of conflicting reports on the Greek debt situation.
The S&P/TSX Composite Index fell back 51.78 points in the first hour of trading to 11,222.46
The main index witnessed a decent run up in the previous sessions on speculation that problems in the Greece will be solved by the European nations. However, with German officials saying nothing has been settled, traders may be hesitant to build positions in equities.
The price of oil edged down and the price of bullion was little changed.
In corporate news, Suncor Energy said that it has reached an agreement with Progress Energy Resources Corp. to sell certain natural gas properties for about $390 million.
Oil and natural gas explorer Talisman Energy slipped to loss reporting fourth-quarter net loss of $0.11 per share, compared to net income of $1.17 per share last year.
Mineral explorer New World Resources has decided to withdraw its proposed offering of EUR 700 million equivalent senior secured notes due to prevailing market conditions.
Mining and metals company First Quantum Minerals announced the finalization of the acquisition of the Ravensthorpe Nickel Operation in Western Australia.
ARC Energy Trust reported net income for the fourth quarter of $0.28 per unit, lower than $0.38 per unit in the prior year quarter.
Canadian stock market operator TMX Group reported fourth-quarter net loss of $0.36 per share, compared to net income of $0.65 per share last year.
Air Canada reported a narrower fourth-quarter net loss of $0.25 per share, down from a loss of $7.27 per share in the year-ago quarter. Further, the airline operator said it plans to increase its full year 2010 system capacity, by 4% to 6% from the full year 2009 level.
Separately, it said that it has tied up with a group of lenders to increase its term credit facility by $100 million
Apparel maker Gildan Activewear reported first-quarter net earnings of 0.23 per share, compared to $4.4 million U.S. or $0.04 U.S. per share in the prior-year quarter.
Financial services provider Home Capital Group reported fourth quarter net income of $1.16 per share, compared to $0.84 per share last year. In addition, the company said its per-share earnings will grow 15-20% for 2010.
Building products distributor Taiga Building Products reported third quarter net earnings of $0.03 per share, compared to a loss $0.08 per share in the previous year.
Interactive network and media services provider Axia NetMedia Corp. reported second-quarter net income of $100,000 or breakeven per share, compared to $900,000 or $0.01 per share in the year-ago quarter.
Animal nutrition maker Ridley Inc. reported second-quarter net earnings of $0.37 per share, compared to $0.05 per share in the same period last year.
In brokerage updates, Raymond James upped Canadian National Railway rating to an "outperform" from a "market perform". RBC cut Suncor Energy to "sector perform' from a "market perform".
In economic news, Statistics Canada said today that the country's exports and imports both advanced in December, resulting Canada's trade deficit with the world to widen to $246 million from $201 million in November.
The Canadian dollar inched 0.06 cents to 93.64 cents U.S.
ON BAYSTREET
All but two of the 14 TSX subgroups faded, weighed down by gold stocks, off 2.7%, global base metals, trailing 2.4%, and materials, down 1.5%.
The two groups that did prosper were in financials and utilities, each up 0.3%.
The TSX Venture Exchange lost 1.20 points to 1,473.33, while the Nasdaq Canada index plowed ahead 4.95 points to 719.51.
ON WALLSTREET
In New York, equities retreated Wednesday morning as investors looked for more details about a potential bailout for debt-ridden Greece and the stronger dollar pummeled commodity prices and stocks.
The Dow Jones industrial average stumbled 73.46 points to begin the session at 9,985.18. The S&P 500 index skidded nine points to 1,061.52 and the Nasdaq composite fell 14.88 points to 2,150.87.
Investors also considered a surprisingly large jump in the December trade gap, with an improving economy driving greater demand for imports.
Wall Street surged Tuesday, lifted by reports that Germany may offer aid to Greece to manage its mounting debt problems.
Hopes that such a rescue would keep the debt crisis in Europe from spilling over and putting the brakes on the global economic recovery helped the Dow gain 150 points, or 1.5%.
Economically, the U.S. trade deficit grew to $40.2 billion in December from a revised $36.4 billion U.S. in November, a government report said.
The January Treasury budget is on tap later in the day.
Fed Chairman Ben Bernanke was due to appear before the House Financial Services Committee hearing on the unwinding of Fed liquidity programs, but the hearing was postponed due to snow.
The Fed, however, may still release Bernanke's planned testimony about the programs that were put in place at the height of the financial crisis.
Steel company Arcelor Mittal reported a fourth-quarter profit of more than $1 billion U.S., compared to a loss of $2.6 billion U.S. in the year-earlier quarter. For all of 2009, the company reported a profit of $118 million U.S.
Disney reported quarterly profit and sales that topped Wall Street's expectations. Shares of the company, which posted its results after U.S. markets closed Tuesday, rose in extended trading.
Treasury prices rose, keeping yields on the benchmark 10-year note at Tuesday's 3.63%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil stepped back 75 cents to $73.00 U.S.
Gold prices backslid $13 to $1,065 U.S.