Markets rise, apple shares fall

The Toronto stock market closed modestly higher Thursday as resource stocks found little support despite a further indication that China is digging itself out of a slump and Apple shares tumbled after a disappointing earnings report and outlook.

The S&P/TSX composite index gained 29.57 points to 12,823.62, while the TSX Venture Exchange fell 12.07 points to 1,229.46.

The Canadian dollar closed below parity with the American currency for the first time since mid-November.

The loonie moved down US0.39¢ to US99.71¢ on top of a loss of just shy of two-thirds of a cent Wednesday after the Bank of Canada cut its economic forecast. The central bank also kept its key rate at 1% and indicated that it won’t move rates higher until 2014.

U.S. indexes were mainly higher amid economic data showing that the number of Americans seeking unemployment aid fell last week to the lowest level in five years.

The U.S. Labor Department said Thursday that weekly unemployment benefit applications dropped 5,000 to a seasonally adjusted 330,000. The less volatile, fourweek average fell to 351,750.

The Dow Jones industrials gained 46 points to 13,825.33 while the S&P 500 inched up 0.01 of a point to 1,494.82 after earlier moving above the 1,500 level for the first time since December 2007.

The Nasdaq fell 23.29 points to 3,130.38 as Apple Inc. stock tumbled 12.35% to US$450.50, down sharply from its 52week high of just over $700. The company warned Wednesday after the close that the huge sales growth of the last five years is slowing drastically as iPhone sales are starting to plateau.

Apple’s net income in the fiscal first quarter was US$13.1 billion, or $13.81 per share, flat with a year ago. That still beat expectations, as analysts polled by FactSet had forecast earnings of $13.48 per share. But it was the first time in years that Apple didn’t post a double-digit earnings increase.

Apple rival Research In Motion started the session down 5% but RIM later ran ahead 2.89% to $17.80 on word that Chinese computer maker Lenovo wants to grow its presence in the mobile device sector and would have a look at RIM.

Research In Motion stock has run up sharply ahead of the unveiling of its new BlackBerry 10 product line Jan. 30, rising more than $4 since the beginning of January. The Waterloo, Ont.-based company has been looking at its strategic options under pressure from some investors and analysts who advocate that the company split apart the hardware and services sides of its business.