All quiet on the markets front
TSX down slightly; U.S. up a fraction based on new home sales
TORONTO — The Toronto stock market closed little changed Wednesday amid positive earnings reports from Royal Bank and a couple of big retailers.
The S&P/TSX composite index had been higher for most of the session but closed down 0.4 of a point at 14,188.58 amid losses in gold and energy stocks.
The Canadian dollar dropped 0.34 of a cent to 89.86 cents US.
U.S. indexes registered minor gains after sales of new homes in the United States rebounded in January to the fastest pace in more than five years.
The Dow Jones industrial average climbed 18.75 points to 16,198.41 after the Commerce Department said sales of new homes increased 9.6 per cent in January to a seasonally adjusted annual rate of 468,000. It came as a surprise to economists, who had been forecasting a sales drop in January of around four per cent.
The Nasdaq was up 4.47 points to 4,292.06 while the S&P 500 index added 0.04 a point to 1,845.16.
Royal Bank’s quarterly net income was up two per cent from a year ago to $2.09 billion or $1.38 a share. Ex-items, RBC earned $1.47 a share, which was above estimates. The bank also announced its quarterly dividend will increase by six per cent to 71 cents per common share. Its shares slipped 61 cents to $72.09 but RBC stock had charged ahead 5.5 per cent this month. Bank of Montreal and National Bank also issued earnings reports this week that beat expectations.
The earnings news was mixed in the retailing segment as Sears Canada Inc. had a $373.7-million net profit in its fiscal fourth quarter, up from $39.9 million a year earlier. But the showing was largely due to gains from unusual items, including early lease terminations for some large stores that are closing. Its shares rose 32 cents to $13.62.
The base metals group was up almost one per cent with March copper off a cent at US$3.24 a pound. The gold sector dropped about one per cent as April bullion fell $14.70 to US$1,328 an ounce.
The energy sector was down 0.34 per cent with the April crude contract in New York up 76 cents to US$102.59 a barrel.