Newspaper article The Canadian Press

Falling Gold Stocks Leave TSX Little Changed amid Strong U.S. Corporate Earnings

Newspaper article The Canadian Press

Falling Gold Stocks Leave TSX Little Changed amid Strong U.S. Corporate Earnings

Article excerpt

TSX little changed, gold stocks weigh

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TORONTO - The Toronto stock market closed little changed Wednesday, supported by rising oil and copper prices amid further evidence of a slow housing recovery and strong corporate earnings in the U.S.

But the market was held back by sliding gold stocks as bullion fell for a third session.

The S&P/TSX composite index inched up 7.96 points to 11,579.15 while traders took in major dealmaking.

Canada's fourth-largest cable company has a deal to acquire a U.S. system operator for US$1.36 billion. Montreal-based Cogeco Cable Inc. (TSX:CCA) says it has a definitive agreement to buy Atlantic Broadband, a private company that operates in five states. The deal will be Cogeco's entry into the United States. Cogeco stock slid $6.60 or 14.83 per cent to $37.90.

The Canadian dollar was up 0.18 of a cent at 98.94 cents US.

The TSX Venture Exchange added 5.59 points to 1,182.34.

U.S. markets turned higher as American builders last month broke ground on the most new homes and apartments in nearly four years.

The U.S. Commerce Department says that housing starts rose 6.9 per cent in June from May to a seasonally adjusted annual rate of 760,000, which beat expectations of 743,000. At the same time, the number of permits to build homes, a sign of future construction, fell 3.7 per cent to 755,000. But that's down from May's three-and-a-half-year high.

The Dow Jones industrial average jumped 103.16 points to 12,908.7.

The Nasdaq composite index was ahead 32.56 points to 2,942.6 and the S&P 500 index was up 9.11 points to 1,372.78.

Shares in Intel shook off early weakness to move up 83 cents to $26.21 following an announcement Tuesday after the close that the weak global economy is slowing its growth, and revenue for the current quarter is likely to come in below forecasts.

Intel's second-quarter net income was US$2.83 billion, or 54 cents per share, down 4.3 per cent from a year earlier, as operating expenses rose faster than revenue. Net income beat forecasts by two cents.

Honeywell International, a big technology and manufacturing company, reported an 11 per cent increase in second-quarter income Wednesday, more than Wall Street was expecting, thanks to higher demand for its products. Honeywell also raised its forecast for full-year profits. Honeywell's stock jumped $3.64 to US$58.18.

After the close, there was further good news from IBM. The tech bellwether turned in earnings per share of US$3.51, beating analyst estimates by nine cents a share. Its stock moved up 0.75 per cent in after-hours trading.

Meanwhile, the Federal Reserve's latest take on growth said the U.S. economy grew at a "modest to moderate" pace over the last month and a half as more districts are reporting slowing growth.

However, the so-called Beige Book, which covered the economy between June and early July, said three regions, up from one in the last survey, reported slowing growth. …

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