TSX moves lower, led by energy, mining stocks; N.Y. mixed ahead of consumer data

By Malcolm Morrison, The Canadian Press

TORONTO - The Toronto stock market was lower in early trading Tuesday as overall buying sentiment remained depressed for a third day while investors took in better-than-expected earnings from Rogers Communications (TSX: RCI-B.TO).

The S&P/TSX composite index stepped back 53 points to 11,181.9. The main index lost about 300 points in the past two sessions on worries that the market has gotten ahead of an economic rebound and a stronger U.S. dollar which sent commodity prices and the Canadian dollar falling.

The loonie was higher Tuesday, up 0.13 of a cent to 93.85 cents after a stronger greenback pushed the loonie down about one-and-a-third U.S. cents on Monday.

Rogers Communications Inc. (TSX: RCI-B.TO) shares were up $1.29 to $30.19 after the company reported that its quarterly net income was $485 million or 79 cents a share, compared to year-earlier earnings of $495 million or 78 cents a share.

After adjustments, the company's net income totalled $505 million or 82 cents a share, up from 73 cents a year earlier and well above analyst expectations of 54 cents per share. Revenue at the company's wireless division was up seven per cent, fuelled by growth in postpaid subscriptions attributed to the popularity of the Apple iPhone.

Canadian Pacific Railway Ltd. (TSX: CP.TO) said that third-quarter net income rose to $195.4 million or $1.16 cents a share, up from $170.7 million or $1.10 cents a share a year ago. However, revenue fell to under $1.1 billion from over $1.3 billion a year ago and its shares dipped 25 cents to $48.48.

The TSX energy sector was off 0.25 per cent as the December crude contract on the New York Mercantile Exchange rose 46 cents to US$79.14 a barrel.

The gold sector was down 1.2 per cent as the December bullion contract on the Nymex declined $2.40 to US$1,040.40 an ounce.

The base metals sector declined 1.55 per cent as December copper was unchanged at US$3.01 a pound.

The TSX Venture Exchange climbed 3.88 points to 1,309.83.

New York indexes were higher on some positive U.S. housing data and ahead of the latest reading on U.S. consumer confidence.

The Dow Jones industrial average gained 20.3 points to 9,888.2 after sliding 104 points on Monday as the Standard & Poor's/Case-Shiller home price index of 20 major cities rose one per cent from July to a seasonally adjusted reading of 144.5.

While prices are down 11.4 per cent from August a year ago, the annual declines have slowed since February.

Prices are at levels not seen since August 2003 and have fallen almost 30 per cent from the peak in May 2006.

The Nasdaq composite index slipped 1.71 points to 2,140.14 while the S&P 500 index rose 0.45 of a point to 1,067.4.

Later in the morning, the U.S. Conference Board is expected to report consumer confidence rose slightly in October compared with the previous month. Economists polled by Thomson Reuters predict the confidence index will rise to 53.5, from 53.1 in September. A reading above 90 means the economy is on solid footing.

American traders will also get a fresh dose of earnings throughout the day, including United States Street Corp. and Visa Inc.

In other corporate news, utility TransAlta Corp. (TSX: TA.TO) said net income rose to $66 million or 34 cents per share in the third quarter, up from $62 million or 31 cents per share in the year-earlier period. The company attributed the increase to improved margins from electricity generation and targeted cost savings. Revenue fell to $666 million from $791 million and cash flow from operations fell to $194 million from $202 million and its shares were off a nickel to $21.

QLT Inc. (TSX: QLT.TO), which has refocused its business on the anti-blindness treatment that was its original product, reported that net income fell to US$8.9 million or 16 cents per share in the three months ended Sept. 30, including discontinued operations, down from US$146.9 million or $1.97 per share a year earlier.

QLT shares advanced a penny to $3.77 as the company also said that revenue fell to US$8.78 million from US$10.87 million in the third quarter of 2008.

Kinross Gold Corp. (TSX: K.TO) shares were 65 cents lower to $21 as the company cut its production guidance for 2009 on Monday due to lower than expected results from its operations in Brazil due to continuing problems at its Paracatu mine. The gold miner said it expected to produce 2.2 million gold equivalent ounces at an average cost of sales per ounce of $435 to $450 for 2009.

Indigo Books and Music Inc. (TSX: IDG.TO) said Monday that it earned $2.2 million or nine cents per share for the quarter ended Sept. 28 compared with a profit of $3.2 million or 13 cents per share a year ago. Revenue for the quarter totalled $207 million, up from $205.3 million. Its shares were unchanged at $12.90.

Meanwhile, Asian stocks retreated Tuesday, following losses on Wall Street amid rising concerns the markets have gotten ahead of economic realities.

In Japan, the benchmark Nikkei 225 stock index lost 1.5 per cent while Hong Kong's market, which was closed Monday, dropped 1.9 per cent.

China's Shanghai market led Asia's declines, tumbling 2.8 per cent.

London's FTSE 100 index rose 0.55 per cent, Frankfurt's DAX was up 0.3 per cent while the Paris CAC 40 was ahead 0.57 per cent.