Tuesday, July 22nd18.0°C
22712
22156

Toronto stock market little changed; BlackBerry reports surprise $23M Q1 profit

TORONTO - The Toronto stock market was barely changed Thursday as traders continued to digest the latest policy announcements from the U.S. Federal Reserve.

The S&P/TSX composite index inched up 2.97 points to settle at 15,112.22, adding to its record close on Wednesday which came six years to the day of the previous record set in June 2008, just before the Great Recession sent stocks tumbling. The loonie gained 0.23 of a cent to 92.40 cents US.

Wall Street was also muted as markets assessed Wednesday's Fed statement, which hinted that the central bank wasn't too worried about inflation but gave no signs on when it might start raising interest rates. The Dow Jones industrials rose 14.84 points to 16,921.46, the Nasdaq dipped 3.51 points to 4,359.33, while the S&P 500 index added 2.50 points to 1,959.48.

Andrew Pyle, senior wealth adviser at Scotia McLeod in Peterborough, Ont., said both Bay Street and Wall Street seem to be pulling back a bit as traders realize that the Fed statement did not necessarily warrant sending stocks higher.

"The reaction to the Fed announcement was a knee-jerk reaction," Pyle said. "If we look at what the Fed is producing in terms of material behind its decision, the markets should not have rallied to the extent that it did. The fed officials are still looking at tightening policy, they're still tapering, quantitative easing and, going into 2015, there is going to be less stimulation for stock markets."

As expected, the Fed also announced it would continue to reduce its monthly bond buyback program by US$10 billion to US$35 billion a month starting in July, on signs of a steadily growing U.S. economy.

On Thursday, the Conference Board said its index of leading indicators for the American economy increased 0.5 per cent last month, the fourth consecutively monthly increase for the measure, which attempts to gauge the economy's future health.

In corporate news, BlackBerry (TSX:BB) posted a surprise US$23-million profit in its first quarter, which beat analyst expectations and showed that efforts the company has made to revamp its smartphone business are making headway.

BlackBerry CEO John Chen said the Waterloo, Ont., company plans on launching a new keyboard smartphone called the BlackBerry Passport in September. It will also continue to dedicate more resources to serving business and public sector customers after a failed attempt to compete with Apple's iPhone in the consumer market. Shares in BlackBerry gained more than nine per cent or 84 cents to close at C$9.84 in Toronto.

Meanwhile, commodity markets were higher amid growing geopolitical instability. Traders bought into gold, sending the price of August bullion up $41.40 to US$1,314.10 an ounce.

Pyle said traders are moving into the precious metal as many expect continued volatility in the stock markets going into the summer due to fighting in eastern Ukraine between pro-Russian insurgents and government forces and the situation in Iraq.

U.S. President Barack Obama said he was dispatching up to 300 U.S. military advisers to help quell the insurgency in Iraq. Though not specifically mentioning airstrikes, Obama also said he was leaving open the possibility of "targeted and precise military action" in the future.

The July crude contract added 46 cents to US$106.05 a barrel while July copper added two cents to US$3.08 a pound.

Follow @LindaNguyenTO on Twitter.

The Canadian Press


Read more Business News

21337


Recent Trending




Today's Market
S&P TSX15315.13+65.14
S&P CDNX1010.884.40
DJIA17113.5461.81
Nasdaq4456.016+31.312
S&P 5001983.53+9.90
CDN Dollar0.9316+0.0004
Gold1313.40+4.2001
Oil104.30-0.29
Lumber332.50+6.20
Natural Gas3.776+0.004

 
Okanagan Companies
Pacific Safety0.200.00
Knighthawk0.01-0.005
QHR Technologies Inc1.19+0.04
Cantex0.06+0.005
Anavex Life Sciences0.33-0.018
Metalex Ventures0.07+0.005
Russel Metals35.60+0.61
Copper Mountain Mining2.83+0.14
Colorado Resources0.215+0.015
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.19+0.01

 





FEATURED Property
20171781153 Trevor Drive
3 bedrooms 3 baths
$429,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Labour shortage in BC

The mainstream media are finally waking up to something unusual in British Columbia – a labour shortage. If the experience of Alberta is a guide to our own future, the highly skilled labour will...


Learn to delegate effectively

Photo: ContributedI have the pleasure of witnessing people delegate tasks quite often. Sometimes with tremendous success and sometimes with disastrous consequences. I have chaired a lot of committees...


Euro debt woes re-emerge

Big Picture Euro debt woes re-emerge Europe’s debt woes jumped back into the headlines this week trumping other economic, geopolitical and corporate developments. Word that one of Portugal&rsquo...

_








Member of BC Press Council


22097