TORONTO ? The Toronto stock market closed lower Wednesday despite a wave of positive Canadian earnings reports and indications that China?s manufacturing slump may have bottomed out.
Here are the closing numbers
TSX ? 12,195.02 -30.82 -0.25%
S&P 500 ? 1,408.75 -4.36 -0.31%
Dow ? 13,077.34 -25.19 -0.19%
Nasdaq ? 2,981.70 -8.76 -0.29%
The S&P/TSX composite index fell for a fourth day, down 30.81 points to 12,195.02 with traders still focused on a slowing global economy. The TSX Venture Exchange was off 0.76 of a point at 1,288.75.
The Canadian dollar shed early gains to move down 0.23 of a cent to 100.51 cents US amid weak commodity prices. It had earlier traded as high as 101.22 cents US, a day after the Bank of Canada maintained its bias towards future interest rate hikes and mentioned the possibility of high household debt levels playing a role in raising rates.
U.S. indexes were also lower on top of steep losses Tuesday after earnings disappointments from DuPont chemical and conglomerate 3M Inc. reinforced a gloomy view of global economic prospects.
The Dow Jones industrials declined 25.19 points to 13,077.34, the Nasdaq composite index was down 8.76 points to 2,981.7 and the S&P 500 index slipped 4.36 points to 1,408.75.
Meanwhile, the U.S. Federal Reserve took no new action during its two-day policy meeting.
Having announced a third round of economic stimulus in September, it wants time to assess whether those aggressive steps will boost growth and job creation.
There was a further sign of a revival in the U.S. housing sector as data showed that new home sales for September rose 5.7% to an annualized rate of 389,000, well above consensus estimates of 382,000 and the highest level since April, 2010.
The TSX found some lift from positive news from China, the world?s second-biggest economy.
A preliminary version of HSBC?s monthly purchasing managers? index rose to a three-month high of 49.1 points. That still was below the 50-point level that would indicate expansion, but nevertheless a strong improvement from September?s 47.9 reading.
The base metals sector was up 1.32% as December copper was unchanged at US$3.56 a pound. Worries about deteriorating economic conditions pushed copper down 18 cents over the previous four sessions.
Teck Resources Ltd. shares were 85 cents higher at $31.39 as the Vancouver-based producer of copper, coal and other minerals announced plans to severely slash capital spending this year and next in the face of a slowing global economy. Teck also reported net income attributable to shareholders of $180-million or 31 cents per diluted share, compared with $814-million or $1.37 is the same 2011 period. Revenue was $2.5-billion, down from $3.38-billion.
The industrials sector rose 1.36% as Canadian Pacific Railway Ltd. said its third-quarter net income was $224-million, an increase of $37-million or 20%, and diluted earnings per share were $1.30, up 18% compared with a year earlier. The profit beat analyst estimates by a penny a share and revenue was slightly above the consensus estimate and its shares ran up $5.29 to $93.18.
The telecom sector rose almost one per cent while Rogers Communications Inc. shares gained $1.35 to $42.43 as the telecom posted net income of $495-million or 96 cents per share, seven cents better than estimates and up from $489-million or 90 cents per share a year ago. Its revenue increased to $3.17 billion, up about one per cent from the same time last year and largely in line with analyst estimates.
The energy sector fell 0.5% with December crude on the New York Mercantile Exchange lower for a fifth day, down 94 cents to US$85.73 a barrel after sliding almost $2 on Tuesday.
Losses deepened in the wake of data showing a bigger than expected rise in crude supplies last week. Crude supplies rose by 5.9 million barrels, much higher than the 1.7-million-barrel increase economists had expected.
Encana Corp. reported a US$1.24-billion net loss in the third quarter, primarily due to the impact of lower natural gas prices over the past year. But Encana said it was still on track to meet its financial guidance for the full year. Its shares lost 70 cents to $21.86.
The gold sector was the leading decliner, down per cent while December bullion fell $7.80 to US$1,701.60 an ounce. Goldcorp Inc. faded $1.46 to $40.79.
The Canadian earnings season is moving into high gear this week and, like in the U.S., expectations are muted.
?I think it will be fair to middling in terms of earnings, I don?t think it will be particularly negative, I don?t think it will be particularly positive,? said Chris King, portfolio manager at Morgan, Meighen and Associates.
?We only have three (major) TSX sectors: financials will be OK, mining will be negative and energy will be neutral.?
The early earnings news from the U.S. was also positive with aircraft maker Boeing turning in quarterly earnings of $1.35 a share, well above the $1.12 a share that had been expected. Boeing?s 2012 overall profit outlook is expected to come in at $4.80 to $4.95 a share, against analyst expectations of $4.72 a share. But Boeing stock lost early momentum to close down 11 cents to $72.71.
Facebook was also in focus after the world?s biggest social media company provided some proof it can make money from mobile advertising. Facebook said after the market close Tuesday that some 14% of its ad revenue came from mobile advertising during the latest quarter. Its stock surged 19% as Citi research upgraded the stock to buy.
Here?s the news investors were watching today:
Bank of Canada says economy is bouncing back
Eurozone?s rot is spreading to Germany, while China mends
Twitter creator launches Square in Canada
Teck Resources profit falls 78% on lower coal and metal prices
ON DECK THURSDAY
ECONOMIC NEWS
CANADA
8:30 a.m.
- Survey of employment, payrolls and earnings (Aug)
UNITED STATES
8:30 a.m.
- Weekly jobless claims: Economists expect 370,000 new claims, down from the week before
- Durable goods orders (Sept): Economists expect 7.5% rise
10 a.m.
- Pending home sales (Sept): Economists expect 2.5% rise from month before, 17.4% gain year over year
CORPORATE NEWS
CANADA
- Goldcorp Q3 earnings: Analysts expect 47? a share
- Potash Corp Q3 earnings: Analysts expect 84?
- Agnico-Eagle Mines Q3 earnings: Analysts expect 41?
- Cenovus Energy Q3 earnings: Analysts expect 47?
- Nexen Q3 earnings: Analysts expect 15?
- Eldorado Gold Q3 earnings: Analysts expect 13?
- Lundin Mining Q3 earnings: Analysts expect 7?
- Precision Drilling Q3 earnings: Analysts expect 24?
- Corus Entertainment Q3 earnings: Analysts expect 36?
- Imax Q3 earnings
?UNITED STATES
- Apple Inc Q4 earnings: Analysts expect US$8.85 a share
- Amazon.com Q3 earnings: Analysts expect loss of 8?
- Coca-Cola Enterprises Q3 earnings: Analysts expect 69?
- ConocoPhillips Q3 earnings: Analysts expect US$1.19 a share
- The Dow Chemical Co Q3 earnings: Analysts expect 37?
- The Procter & Gamble Co Q3 earnings: Analysts expect 96?
- Sprint Nextel Corp Q3 earnings: Analysts expect a loss of 42?
- Colgate-Palmolive Q3 earnings: Analysts expect US$1.38
Source: http://business.financialpost.com/2012/10/24/closing-bell-economic-worries-push-tsx-down-for-fourth-session-despite-positive-earnings/
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