TSX registers triple digit gain

Barrick shares rose 50 cents to $18.51, although they remain at their lowest level in years. It posted US$923 million or 92 cents per share of adjusted earnings in the first quarter, down from US$1.1 billion or $1.10 per share. Net income before adjustments was $847 million or 85 cents per share.

Barrick’s results beat the consensus estimate of 85 cents per share or $852 million of adjusted earnings and 81 cents per share or $865 million of net income. Its shares were up as it also plans to cut at least US$500 million from spending on major projects this year and may sell non-core assets in response to lower prices and profit experienced in the first quarter.

“Most commodity investors are (worried) by the fact that cash costs in most commodity industries have been going up,” said Gareth Watson, vice president investment management and research at Richardson GMP Ltd.

“They have been worried about that so it’s being addressed and we’re seeing some progress, to see those costs decline, that can only be viewed positively.”

Canadian Pacific reported quarterly net income of $217 million or $1.24 per share, while revenue was up nine per cent to a quarterly record of $1.495 billion. The railway’s operating ratio, a key measure of efficiency, improved to 75.8 per cent, which Canadian Pacific said was a record for the company.

CP chief executive Hunter Harrison, who was brought in last year, said he’s happy with the progress but not finished with transforming the company. Its stock lost early momentum and dropped $1.08 to $125.15, well above its 52-week low of $71.61. Most of the gains have taken place since last September and expectations for CP are high.

The Canadian dollar was down 0.09 of a cent to 97.36 cents US.

U.S. indexes were weak as traders balanced disappointing durable goods data with positive earnings from corporate heavyweights Ford Motor Co. and Boeing.

The Dow Jones industrials was down 20.55 points to 14,699.44, the Nasdaq was down 0.29 points to 3,269.00 and the S&P 500 index gained 1.41 points to 1,580.19.

The Commerce Department says orders for durable goods declined 5.7 per cent in March, after a 4.3 per cent gain the previous month. February’s figure was revised lower.

The steep March decline was exacerbated by a 48.2 per cent fall in commercial aircraft orders. Still, even excluding aircraft, cars and transportation equipment, orders dropped 1.4 per cent, the second straight decline.

There was one positive sign – so-called core capital goods, which signal companies plans to expand and modernize their operations, ticked up 0.2 per cent.

In the U.S., Ford says net income rose 15 per cent in the first quarter to $1.6 billion amid record North American profits. Ford beat Wall Street’s forecast with earnings of 40 cents per share, up from 35 cents in the first quarter of 2012. Analysts polled by FactSet had forecast earnings of 37 cents per share.

Revenue rose 10 per cent to $35.8 billion, beating Wall Street’s forecast of $33.5 billion and Ford shares shed early gains to move down one per cent to US$13.23.

Boeing’s first-quarter net income rose 20 per cent to $1.1 billion, or $1.44 a share, from $923 million, or $1.22 a share, a year ago. The Chicago-based company said quarterly core earnings per share rose 24 per cent to $1.73 from $1.40 a year earlier. Analysts polled by FactSet had expected earnings per share of $1.49 on revenue of $18.83 billion. The commercial-airplane and defence company reaffirmed its 2013 guidance and shares rose 3.25 per cent to US$91.05.

Apple shares headed downwards after the company handed in earnings and revenue results that narrowly beat estimates. At the same time, the company also said revenue for the current quarter could fall from the year before, which would be the first decline in many years. Apple CEO Tim Cook also suggested that the company won’t release any new products until the fall, contrary to expectations that there would be a new iPhone and iPad out this summer.

The tech giant’s share price has slid more than 42 per cent from its peak in September. Its shares were down $1.07 to US$405.22.

The Barrick results helped push the gold sector up about three per cent, as did rising gold prices. The June bullion gained $14.90 to US$1,423.70 an ounce. Goldcorp Inc. (TSX:G) was up 90 cents to C$29.34.

The metals and mining sector also advanced about three per cent while May copper closed up six cents to US$3.16 a pound.

A note from analysts at Goldman Sachs says the outlook for copper prices are expected to rebound in the next three months, aided by Chinese growth in the second half of the year, and the U.S. economy heading towards a soft patch.

Sherritt International Corp. (TSX:S) posted a reduced first-quarter profit and a 20 per cent decline in revenue from the same time last year. The diversified mining company had $23.1 million of net earnings, or eight cents per share, down from $32.4 million or 11 cents per share in the year-earlier quarter. Revenue was $286.5 million, down from $359.4 million and its shares were eight cents lower to $4.37.

The energy sector gained 1.25 per cent as the June crude contract on the New York Mercantile Exchange rose $1.96 to US$91.14 a barrel.

Cenovus Energy Inc. (TSX:CVE) reported a first-quarter profit of $171 million as it was hit by unrealized hedging and foreign exchange losses. Its shares gained 44 cents to $29.19.

The company said its refinery business was also hit by weak prices for heavy oil during the first quarter. Its profit amounted to 23 cents per share for the quarter ended March 31 compared with 56 cents per share a year ago. Revenue was $4.32 billion, down from $4.69 billion.