Markets were mixed Wednesday on a flood of positive third-quarter earnings reports from U.S. market heavyweights, but held in check by declining commodity prices.
The Toronto Stock Exchange's benchmark index, the S&P/TSX composite, wavered in and out of positive territory, and was ahead by 14.14 points, or 0.12 per cent, to 11,552.26 as of 10:10 a.m.
After reaching record highs for the year around $80 U.S. a barrel Tuesday, oil fell back to $78.60 U.S. after the opening bell. Oil closed Wednesday at $79.09 U.S.. Late Tuesday, the American Petroleum Institute reported that oil inventories rose by a more-than-expected 3.8 million barrels last week. Traders will also be looking to Energy Information Administration figures later today.
The price of gold fell to $1,054.80 U.S. an ounce early Wednesday from its previous close of $1,058.60 U.S.. The Canadian dollar was up one basis point to 95.18 cents U.S., after losing almost two cents U.S. on Tuesday.
The Dow Jones industrial average rose 21.09 points, or 0.21 per cent, to 10,062.04 and the Nasdaq composite index added 10.69 points, or 0.49 per cent, to 2,174.2.
In earnings, U.S. lender Morgan Stanley beat expectations and reported its first profit in a year, although earnings fell to $757 million U.S., or 38 cents U.S. a share, from $7.7 billion U.S., or $6.97 U.S. a share, a year earlier.
Likewise, home lender Wells Fargo & Co., posted record third-quarter profit to $3.24 billion U.S., or 56 cents U.S. a diluted share, from $1.64 billion U.S., or 49 cents U.S., a year earlier. The profits came from limiting loan defaults, savings out of Wachovia Corp., which it acquired last year, and increased interest income and fee revenue
Eli Lilly & Co., boosted its full-year outlook and posted a better-than-expected third-quarter profit of $941.8 million U.S., or 86 cents U.S. a share, compared with a loss of $465.6 million U.S., or 43 cents U.S., a year earlier. Excluding some expenses, Yahoo! Inc. reported profit of $186.1 million U.S., or 13 cents U.S. a share, from $54.3 million U.S., or four cents U.S. a share, a year earlier.
However, Boeing Co. posted a more-than-expected net loss of $1.56 billion U.S., or $2.23 U.S. a share, compared with net income of $695 million U.S., or 96 cents U.S., a year earlier on delays to its 787 Dreamliner and 747-8 jumbo jet.
"It's early in the proceedings with only about 16 per cent (or 82) of S&P 500 companies reporting, but 84 per cent of companies have beaten earnings expectations — that's on pace for the most since at least 1993. If we look at all U.S. equities, a more substantial 456 companies have reported, with positive surprises outnumbering negatives by 3.5-to-1," Robert Kavcic of BMO Capital Markets wrote in a morning note.
On the employment front, initial jobless claims in the U.S. fell a more-than-expected fell by 10,000 to 514,000 in the week ended Oct. 10 to the lowest level in nine months, the Labor Department reported Wednesday. Continuing claims for benefits also fell by 75,000 to 5.99 million in the week ended Oct. 3.
Overseas markets were down. London's FTSE was down 39.09 points, to 0.75 per cent, to 5,204.31 at midday. Frankfurt's DAX lost 35.35 points, to 0.61 per cent, to 5,776.42 and the Paris CAC fell 39.06 points, to 1.01 per cent, to 3,832.39.
In Asia, Tokyo's Nikkei stock average closed down 3.45 points, to 0.03 per cent, to 10,333.39. Hong Kong's Hang Seng index lost 66.85 points, to 0.3 per cent, to 22,318.11.
Tuesday, the S&P/TSX fell 0.27 points to close at 11,538.12. The Dow Jones industrial average was down 50.71 points, or 0.5 per cent, to 1,0041.48, and the Nasdaq composite index shed 12.85 points, or 0.59 per cent, to 2163.47.
