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Stocks stay flat amid falling mining stocks, positive earnings reports

Canadian Press, The Canadian Press
0 Comments| January 29, 2015

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TORONTO _ The Toronto stock market market was little changed Thursday as another day of declines in mining stocks competed with a positive response to earnings reports from the likes of Facebook, PotashCorp. (TSX: T.POT, Stock Forum)and Rogers Communications (TSX:RCI.B).

The S&P/TSX composite index edged up 1.48 points to 14,604.36.

The Canadian dollar lost more ground in the wake of Wednesday's announcement from the Federal Reserve that left markets with the impression that the central bank will start hiking rates around the middle of this year. The loonie lost 0.11 of a cent to 79.76 cents US, adding to the three-quarters of a cent slide racked up in the previous session.

The Fed said it would be patient in beginning to normalize monetary policy while at the same time it pointed out a string of positives about the American economy, including that economic activity is expanding at a solid pace.

New York indexes were also little changed, still weighed down by worries the Fed might end up raising rates too soon.

The Dow Jones industrials dipped 0.83 of a point to 17,190.54, the Nasdaq declined 22.46 points to 4,615.53 and the S&P 500 index was down 4.63 points to 1,997.53.

After the close, Facebook reported fourth-quarter net income of $696 million or 25 cents a share. Earnings, adjusted for stock option expense and amortization costs, were 54 cents per share, five cents ahead of estimates. The social media company posted revenue of $3.85 billion in the period, surpassing forecasts of $3.79 billion. Its shares were up 1.4 per cent to $77.29. Its stock is up almost 40 per cent in the last 12 months.

Potash posted quarterly income of $407 million, or 49 cents per share, up from $230 million or 26 cents a year ago, beating estimates of 47 cents. Revenue was $1.9 billion, compared with $1.5 billion a year ago and its shares advanced $1.24 to $46.60.

Rogers Communications Inc. (TSX:RCI.B) posted quarterly net income of $297 million, or 62 cents a share, compared with $320 million, or 57 cents a share, a year ago. Its revenue was up four per cent at $3.37 billion. Adjusted net income was $355 million or 69 cents a share, beating expectations of 64 cents. It also hiked its annual dividend by five per cent and its shares rose $1.03 to $45.58.

And in the U.S., Ford's net income fell to $52 million in the fourth quarter, largely due to an expected $800 million charge because of Venezuelan currency controls. Without one-time items, including the Venezuela charge and separation payments in Europe, Ford earned $1.1 billion in the quarter, down 15 per cent from a year ago. Pretax earnings of 26 cents per share beat forecasts of 22 cents per share. Fourth-quarter revenue fell 4.5 per cent to $35.9 billion, also beating analysts' expectations but its shares slipped nine cents to $14.36.

Oil prices advanced after plunging almost $2 Wednesday in the wake of figures showing U.S. crude inventories still at 80-year highs. The March contract gained 34 cents to US$44.79 a barrel but the energy sector was off 0.3 per cent.

The base metals sector on the TSX fell 1.75 per cent while March copper fell three cents to US$2.45 a pound as demand concerns amid a sluggish global economy continued to weigh on prices.

February gold declined $16.90 to US$1,269 an ounce and the gold sector fell 1.85 per cent.



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