Energy stocks boost TSX
Higher energy stocks helped send the Toronto stock market to a minor gain late Wednesday morning.
The tech sector also supported the TSX on reports of talks between Nortel Networks (TSX: NT) and Motorola, and developments in Microsoft's bid for Yahoo.
New York indexes were mainly lower on fresh concerns in the financial sector.
Toronto's S&P/TSX composite index gained 63.76 points to 13,053.1 after worries about the U.S. economy chopped 2.5 per cent from the index last week.
The information technology sector was the lead advancer, up 1.5 per cent with shares in Nortel Networks (TSX: NT) up a modest 12 cents to $11.16. The Wall Street Journal reported that Motorola and the Canadian tech giant are in talks to combine their wireless-infrastructure units in a joint venture.
In explaining the market's tepid response to the report, Kate Warne, Canadian market specialist at Edward Jones in St. Louis suggested "the hope was (Nortel) would somehow tie up with someone who had a bit stronger outlook and it would be more positive for Nortel."
If such a deal goes through, the joint venture would likely have sales of about US$10 billion, combining businesses that make network equipment for wireless phone carriers.
Also helping lift the sector was Research In Motion Ltd. (TSX: RIM), which advanced $3.36 to $93.25.
The TSX Venture Exchange added 0.94 of a point to 2,527.76 while the Canadian dollar was off 0.15 of a cent to 99.87 cents US.
On Wall Street, the Dow Jones industrial average dropped 33.97 points to 12,148.16 following a 4.4 per cent tumble last week.
The Nasdaq composite index gained 6.88 points to 2,311.73 as Yahoo Inc. formally rejected Microsoft Corp.'s US$44.6-billion takeover bid as inadequate. Many analysts believe Microsoft is prepared to offer as much as $35 per share for Yahoo, $4 more than the original bid.
Also, Internet search leader Google has offered to help Yahoo avert a takeover and urged antitrust regulators to take a hard look at the proposed deal. Yahoo shares rose 1.15 per cent to US$29.53.
The tech-intensive index also had a dreadful week last week, sliding 4.5 per cent and entering bear-market territory, having lost about 20 per cent from its most recent high last year.
The S&P 500 index slipped 0.18 of a point to 1,331.11.
Financial stocks depressed the market shortly after the opening on news that American International Group Inc. may have more mortgage debt to write off.
AIG, one of the 30 Dow Jones industrials, said in a regulatory filing Monday it would need to alter the way it values credit default swaps involving collateralized debt obligations, some of which are backed by mortgages.
The filing raised concerns that there will be further losses at AIG, and that other financial companies might reveal similar problems.
"We'll likely continue to see things like this because we know that the credit markets aren't even back to normal, we certainly have worries about the bond insurers overhanging and we know that with the consumer slowing globally and certainly in the U.S., that we're going to see more bad news out of credit card issuers and others," added Warne.
The TSX financial sector moved down 0.2 per cent as CIBC (TSX: CM) gave back 77 cents to $66.70.
Oil prices were volatile after Venezuelan President Hugo Chavez threatened to cut off oil sales to the United States if Exxon Mobil Corp http://payday-badcredit.com. wins court judgments to seize billions of dollars in Venezuelan assets. The March contract for light sweet crude oil on the New York Mercantile Exchange reversed direction to move up 40 cents to US$92.17 per barrel.
The TSX energy sector was up 0.5 per cent, with EnCana Corp. (TSX: ECA) up 55 cents to $67.80 and Canadian Natural Resources (TSX: CNQ) down 60 cents to $61.61.
The consumer discretionary sector rose 0.7 per cent as Magna International (TSX: MG.A) improved $2.39 to $77.91.
The gold sector was flat as the April bullion contract in New York moved up $2.50 to US$924.80 an ounce.
Shares in Transcontinental Media (TSX: TCL.B) were unchanged at $14.53 after it said it is shutting The Halifax Daily News and will instead put out a new, free paper.
Agrium Inc. (TSX: AGU) said Monday it is refiling documentation as the U.S. Federal Trade Commission continues its competition review of the Canadian company's proposed acquisition of UAP Holding Corp. (NASDAQ:UAPH).
The US$2.65-billion friendly acquisition, which would make Agrium the largest farm-inputs retailer in North America, has been approved by competition authorities in Canada, where UAP has little presence. Agrium shares gained $2.13 to $63.16.
Overseas, Japan's Nikkei market is closed for a holiday, while Hong Kong's Hang Seng index finished down 3.64 per cent.
Britain's FTSE 100 fell 962.9 points to 5,721.1, Germany's DAX index lost 27.48 points to 6,739.8 and France's CAC-40 ticked 21.79 points lower to 4,687.86.
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