Source: The Canadian Press


The Toronto stock market closed with a small loss Friday after a disappointing reading on U.S. consumer confidence dampened enthusiasm generated by the record quarterly results of tech heavyweight Research In Motion.

The S&P/TSX composite index slipped 8.79 points to 12,164.56, while the TSX Venture Exchange gained 11.62 points to 1,661.96.

Early gains on the TSX moderated then reversed following news that the University of Michigan’s index of consumer sentiment dropped to its lowest level in a year. Falling consumer confidence doesn’t bode well for markets because it could mean a drop in retail sales — a primary driver of the American economy.

“It’s telling us there is some apprehension out there, there is some genuine concern,” said Adrian Mastracci, portfolio manager at KCM Wealth Management in Vancouver.

“I don’t think all those consumers are really gung-ho about their jobs. I think they’re saying, ‘Maybe we have to take a more cautious attitude here… it’s difficult out there.’”

The tech sector added 0.2% after RIM (TSX:RIM) reported earnings of US$796.7 million in its most recent quarter, up 68% from a year ago, while revenue increased 31%.

The BlackBerry maker also said it expects to resolve its security issues with countries such as the United Arab Emirates and India, which want access to encrypted data on BlackBerrys — a demand that threatens to undermine RIM’s reputation for highly secure communications.

Shares in RIM inched up eight cents to $47.78 after earlier climbing as much as 5%.

The gold sector slipped even as the December bullion contract on the New York Mercantile Exchange gained $3.70 to close at another record high of US$1,277.50 an ounce. The price of the precious metal has been soaring in recent days, and has hit three all-time highs in this week alone.

Shares in Barrick Gold Corp. (TSX:ABX) gained 40 cents to C$47.52.

The metals and mining sector gained 0.4% as the December copper contract added 2.85 cents to US$3.52 a pound. Shares in HudBay Minerals Inc. (TSX:HBM) rose 32 cents or 2.1% to C$15.46.

The energy sector edged up 0.1% as the October crude contract fell 91 cents to US$73.66 a barrel following the disappointing consumer confidence data. Shares in Suncor Energy Inc. (TSX:SU) added 19 cents to C$33.23.

The financial sector was down 0.2%. Shares in CIBC (TSX:CM) gained 13 cents to $74.14.

The Canadian dollar fell 0.45 of a cent to 96.96 cents US.

In New York, strength in the tech sector following RIM’s better-than-expected results and strong profits from software company Oracle Corp. (Nasdaq:ORCL) helped to offset negative investor sentiment. Oracle’s strong revenue growth demonstrated that companies are investing in new technology — often considered a leading indicator for an economic recovery.

The Dow Jones industrial average gained 13.02 points to 10,607.85. The Nasdaq composite index was up 12.36 points at 2,315.61, while the S&P 500 added 0.93 of a point to 1,125.59.

A report that U.S. consumer prices posted a small rise of 0.3% in August had little impact on the markets. Outside of a big jump in volatile gasoline prices, inflation was essentially flat, the U.S. Labour Department reported.

Sluggish demand is preventing most businesses from raising prices and high unemployment is keeping a lid on wages.

In economic news, the Organization for Economic Co-operation and Development said the global economy is off to an even weaker start in the second half than expected. Earlier this month, the Paris-based organization had predicted the Group of Seven industrialized countries would grow by around 1.5% on an annualized basis in the second half of 2010 — down from its previous forecast of 1.75% in May.

In corporate news, stock in pharmaceutical company Transition Therapeutics Inc. (TSX:TTH) plummeted 45 cents or 11.3% to $3.52 after it announced it will no longer work to develop TT-223, one of the compounds it had been investigating as a treatment for diabetes, after a clinical trial showed it wasn’t effective.

Shares of Gabriel Resources Ltd. (TSX:GBU) soared 96 cents or 19.5% to $5.89 after Romanian officials confirmed they were working on an environmental assessment of the mining company’s stalled Rosia Montana gold mine.

Energy company Enbridge Inc. (TSX:ENB) announced it had restarted a pipeline that spilled oil in the Chicago area last week. Shares in Enbridge fell 10 cents to $51.79.

China-based Jinchuan Group Ltd. has reached a friendly deal to acquire junior miner Continental Minerals Corp. (TSXV:KMK) for $432 million in cash. Shares in Continental jumped 28 cents or 12.2% to $2.58.

And shares of custom industrial truck builder Drive Products Income Fund (TSX:DPI.UN) soared $1.16 or 89.2% to $2.46 after two top company executives made a cash bid for all the outstanding units of the company. The bid values Drive Products at about $17.2 million.