Wednesday, December 17th1.2°C
24562
24285

Toronto, Wall Street end the week higher as BlackBerry shares fall on earnings

TORONTO - The Toronto stock market closed sharply higher amid expectations that China will move to counter its economic slowdown, but an earnings report from Canadian smartphone maker BlackBerry Ltd. failed to inspire investors.

The S&P/TSX composite index jumped 81.88 points to 14,260.72. The Canadian dollar fell 0.23 of a cent to 90.42 cents US.

BlackBerry CEO John Chen says he is focused on growing the struggling smartphone company and has no intention of moving its main operations outside Canada.

The Waterloo, Ont.-based BlackBerry, which has been restructuring and cutting costs in the last year, posted a fourth-quarter loss of US$423 million or 80 cents per share diluted in its latest quarter. This compared with a profit of $98 million or 19 cents per diluted share a year ago.

However, excluding one-time items, BlackBerry (TSX:BB) said it had an adjusted loss from continuing operations of $42 million or eight cents per share.

Analysts, on average, had expected a loss of 55 cents per share, according to estimates compiled by Thomson Reuters.

Shares in BlackBerry rose as much as six per cent in early trading, but then reversed course and closed down more than six per cent, or 65 cents, at $9.31.

Meanwhile, Wall Street was positive as the Dow Jones industrials gained 58.83 points to 16,323.06, the Nasdaq rose 4.53 points to 4,155.76 and the S&P 500 index added 8.58 points to 1,857.62.

Bob Gorman, chief portfolio strategist with TD Waterhouse, said many analysts expect 2014 to be "the year of convergence" between the TSX and the New York markets, as resource stocks see a bit of a lift.

"We're having a bit of a pop to the upside," he said. "There's not a lot of strong storylines, but it just reflects a little bit of a bounce from recent weakness, more than anything else."

Most sectors on the Toronto Stock Exchange were in the black, with gold and metals and mining stocks emerging as the leading advancers.

The gold contract took back 50 cents to US$1,294.30 an ounce, while oil gained 39 cents to US$101.67 a barrel. May copper contract gained five cents to US$3.04 a pound.

Overseas, expectations grew that China would inject more stimulus into its economy after seeing growth slow to its weakest level since the financial crisis five years ago.

China has set a target of 7.5 per cent economic growth this year but has said it is more concerned about ensuring sufficient new jobs are created than precisely meeting the GDP figure.

In the U.S., the latest figures showed that the economy there is progressing at a moderate pace.

The U.S. Commerce Department said consumer spending rose 0.3 per cent in February following a 0.2 per cent rise in January, helped by a surge in spending on utility bills. However, spending on durable goods such as autos dropped.

Another report found that consumer sentiment slipped in March from the previous month, as Americans said they were less likely to buy cars and homes because of slightly higher interest rates.

The University of Michigan says its consumer sentiment index dipped to 80 in March from 81.6 in February.

That's still about five points higher than last fall, when sentiment fell during the government shutdown. The index was 82.5 in December, leaving economists to conclude that the figures suggest confidence didn't take that big of a hit during the harsh winter.

The Canadian Press


Read more Business News

24200


Recent Trending




Today's Market
S&P TSX14213.88+352.36
S&P CDNX659.03+16.68
DJIA17356.87288.00
Nasdaq4644.312+96.477
S&P 5002012.89+40.15
CDN Dollar0.8590-0.0009
Gold1184.00-9.90
Oil56.14+0.21
Lumber335.50+3.30
Natural Gas3.692+0.073

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27+0.04
Cantex0.03-0.005
Anavex Life Sciences0.1659-0.0241
Metalex Ventures0.05-0.005
Russel Metals27.18+1.03
Copper Mountain Mining1.54+0.11
Colorado Resources0.105-0.005
ReliaBrand Inc0.0199+0.0065
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.22+0.02

 
23744




FEATURED Property
2140309505 Stanley Cres
4 bedrooms 3 baths
$499,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...


Housing prices to skyrocket?

As most of you know, this column was started with a focus on Okanagan real estate. Over time, more and more columnists started covering the real estate sphere and so it morphed in to a personal colum...

_





24111


Member of BC Press Council