Canada’s benchmark index notched another day of solid gains that stood in stark contrast to U.S. stocks, which meandered sideways following disappointing earnings from Dell Inc. and concerns that Greece’s bailout might not end its debt crisis.
The Dow Jones industrial average closed at 12,938.67, down 27.02 points or 0.2 per cent. The broader S&P 500 closed at 1,357.66, down 4.55 points or 0.3 per cent. In Canada, the S&P/TSX composite index closed at 12,701.26, up 77.90 points or 0.6 per cent.
For U.S. stocks, this marked the second straight day of sideways trading, as investors looked beyond this week’s bailout package for Greece and focused on whether the €130-billion merely delays problems ahead. Fitch Ratings downgraded Greece’s credit rating, pushing it deeper into junk status and noting that a credit default was likely in the near term.
At the same time, Dell Inc. disappointed expectations with its quarterly results, sending the stock down 5.8 per cent. Wal-Mart Stores Inc., which disappointed with its own quarterly results on Tuesday, fell another 2.5 per cent and was the biggest laggard among the Dow’s 30 members.
Meanwhile, Bank of America Corp. fell 2 per cent but Coca-Cola Co. rose 0.6 per cent and Pfizer Inc. rose 0.7 per cent.
In Canada, gold producers were among the biggest winners after gold leapt to its highest level of the year, rising to $1,771.30 (U.S.) an ounce, up $12.80. Gold has risen about $200 an ounce in 2012, and has turned in three days of consecutive gains. Barrick Gold Corp. rose 2.6 per cent and Goldcorp Inc. rose 2.3 per cent.
Energy stocks were also strong, even though crude oil merely treaded water, at $106.28 a barrel. Suncor Energy Inc. rose 2.5 per cent and Canadian Oil Sands Ltd. rose 1.6 per cent.
However, despite strong reviews of Research In Motion’s operating system upgrade for its PlayBook tablet, investors remain less than impressed: The shares fell 1.5 per cent.
