Translate
Mar. 3, 2010 (Baystreet.ca) --
The Toronto stock market was higher Wednesday afternoon as commodity prices improved, but the market was held back by the financial sector after Royal Bank delivered an earnings report that disappointed investors.
The S&P/TSX composite index was ahead 24.54 points to end the day at 11,852.85.
Royal Bank of Canada broke a string of better-than-expected earnings reports from Bank of Montreal, CIBC and National Bank over the past week.
RBC reported a $1.5-billion profit, up 35% from a year before, with provisions for credit losses reduced by 37%, falling to $493 million. However, cash earnings per share were $1.03, a penny short of analysts' expectations and its shares lost $1.14 to $57.10.
Elsewhere in the sector, Laurentian Bank of Canada shares rose $1.37 to $41.76 after it said its profit was up 28% from a year ago to $32 million or $1.21 per common share in its most recent quarter. Revenue at the Montreal-based bank was up 15% to $180.4 million.
The base metals sector was stronger as May copper climbed two cents at $3.43 U.S. On the TSX, Teck Resources gained 87 cents to $41.07 and Equinox Minerals was up 23 cents at $3.62.
The energy sector was up as oil prices gained momentum, despite an increase in U.S. crude inventories of 4.1 million barrels last week, which was well over the estimate for one million barrels. However, distillates including heating oil and diesel inventories fell more than expected.
Among energy issues, Suncor Energy climbed 53 cents to $31.63 while EnCana Corp. dipped 53 cents to $35.15.
The TSX global gold index moved up, as Goldcorp Inc. ran ahead 66 cents to $41.39 while Barrick Gold improved 55 cents to $41.50.
In other earnings news, newspaper, book and Internet publisher Torstar Corp. had a $57.4-million profit in the fourth quarter, a turnaround from the $213.9-million loss it reported a year earlier when the publishing and media company recorded major writedowns. Its shares rose 49 cents or 6.8% to $7.74.
Technology licensing company Wi-LAN Inc. said it lost $1.7 million in the 14 months ended Dec. 31, compared with a net loss of $9.2 million in the 12 months ended Oct. 31, 2008, when the company used a different year-end. Yearly revenues increased to $35.4 million from $26.6 million.
The company also raised its revenue and earnings forecast for 2010 and its shares gained 24 cents to $3.04. Wi-Lan shares gained 17 cents or 6.1% to $2.97.
WestJet shares declined 15 cents to $13.97 as it reported that passenger traffic was up 9% in February. Seating capacity used, as measured by load factor, came in at 82.5%, which was little changed from year a earlier
The Canadian dollar gained 0.53 cents to 97.01 cents U.S.
ON BAYSTREET
Of the 14 TSX subgroups, nine were positive to end the day. Metals and mining stocks led the charge, strengthening 2.3%, followed by global base metals, up 1.5% and gold, gaining 1.4%.
The five laggards were weighed by information technology, sliding 0.7%, telecoms, easing 0.5% and financials, off 0.3%.
The TSX Venture Exchange was ahead 3.57 points to 1,551.72, while the Nasdaq Canada index gained 1.94 points to 761.14.
ON WALLSTREET
In New York, equities ended mixed Wednesday, giving up the day's gains by the close as reports showing a stronger economy and a slower pace of job cuts failed to reassure investors after the recent run.
The Dow Jones industrial average settled back 9.22 points to close at 10,396.76. The S&P 500 index picked up 0.48 points to 1,118.79, and the Nasdaq composite lopped off 0.11 points to 2,280.68
Stocks had posted slim gains through the early afternoon following reports showing some stability in the job market and a pick up in the services sector. But the gains petered out in the afternoon.
Investors had a mild reaction to the Fed's periodic "Beige Book" reading on the economy, released this afternoon. The Beige Book showed that economic activity picked up somewhat in nine of the Fed's 12 districts. Consumer spending also improved modestly.
But the report failed to sway investors, leaving stocks near unchanged.
Stocks have drifted higher over the past three sessions, pushing the S&P 500 and the Nasdaq into positive territory for 2010. The Dow briefly moved into positive territory during Wednesday's session, before retreating.
After a strong rally in 2009, stocks have been volatile this year as investors look for evidence that an economic recovery is taking hold, above and beyond the considerable government stimulus that has been put into play.
Market participants have been reluctant to move much in the aftermath of a big rally. Between the lows of last March and the highs of January, the S&P 500 jumped 70%.
Hedge fund Elliott Associates made an unsolicited all-cash offer for Novell (NOVL) that values the business software maker at around $2 billion U.S.
Elliott Associates offered to buy the remaining 91.5% of the company it doesn't already own for around $5.75 U.S. per share, or $1.83 billion U.S. The price is a 21% premium over Novell's closing stock price from Tuesday.
Novell jumped 28% and was the Nasdaq's most-actively traded issue.
On the downside, biotech Medivation lost two-thirds of its value after the company said that its experimental Alzheimer drug Dimebon failed to produce desired results in a late-stage clinical study. Dow component Pfizer which co-develops the drug, lost 1%.
Among other Dow movers, Caterpillar, Home Depot, General Electric, Coca-Cola and Boeing all gained.
Greece announced a $6.5-billion U.S. plan Wednesday to help it cut its ballooning deficit. The plan includes $3.3 billion U.S. in new revenues such as taxes and another almost $3.3 billion U.S. in spending cuts, including pension freezes and cuts in civil servants' salaries.
Worries that Greece might default on its debt have pummeled the euro and unnerved world markets over the last two months, as investors have wondered if the problems are indicative of a bigger eurozone crisis.
The European Union said Wednesday that it will more closely regulate the economies of its 27 members so as to avoid a repeat of the Greece crisis. The new system will issue warnings if a country is heading for trouble, something that might have alerted officials to Greece's problems at an earlier date.
Economically speaking, payroll processing firm ADP's reading on private-sector payrolls showed a decline of 20,000 jobs in February, matching expectations from a consensus of economist projections from Briefing.com. It was the smallest decline in two years.
Outplacement firm Challenger, Gray & Christmas said that 42,090 layoffs were announced for February, 41% less than the cuts announced for January. The pace of job cuts slowed to the lowest level in 3 1/2 years.
In other economic news, the Institute for Supply Management's services sector index rose to 53 in February from 50.5 in January, hitting the highest point since December 2007, at the start of the recession. Economists surveyed by Briefing.com thought it would rise to 51.
Treasury prices were down slightly, raising the yield on the 10-year note to 3.62% from Tuesday's 3.61%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil added $1.24 to $80.92 U.S.
Gold prices gained seven dollars to $1,144 U.S.