TORONTO - The Toronto stock market opened little changed Friday, even as tech heavyweight Research in Motion's shares plunged a day after it released disappointing quarterly results.
RIM stock (TSX:RIM) plummeted 23 per cent or $6.78 to $22.62 after the BlackBerry maker reported lower second-quarter profits and revenues and failed to meet analyst expectations. The information technology sector weighed on the market, down 5.5 per cent.
RIM's revenues fell 15 per cent to just under US$4.2 billion from $4.6 billion while profits dropped 58 per cent to $329 million from $797 million a year earlier.
In its financial report, the company booked a charge of $118 million to pay the cost of cutting 2,000 jobs, about 11 per cent of its workforce. The company also sold far fewer BlackBerry smartphones and computer tablets than it expected and several analysts expressed doubts that RIM can meet its future revenue expectations.
The TSX has closed higher for the past three trading sessions.
Wall Street, which has closed higher for four straight days, opened in the green, with the Dow Jones up 63.3 points to 11,496.5 and the Nasdaq index adding 8.6 points to 2,615.7. The S&P 500 index was ahead 6.25 points to 1,215.35.
The loonie was up slightly by 0.1 of a cent to 101.73 cents US as commodity prices were little changed.
Oil prices stepped back slightly by 15 cents to US$89.25 a barrel. Gold added $9.80 to $1,791.20 an ounce while copper prices added three cents to $3.98.
European financial officials are meeting in Poland, joined by U.S. Treasury Secretary Timothy Geithner. The group's leader said Friday that it will not decide until next month whether Greece has qualified for its next round of bailout money.
The announcement at the meeting in Wroclaw, Poland, was yet another example of Europe's halting effort over almost two years to solve its crisis over too much government debt in some countries.
Worries about a possible default by Greece have weighed on financial markets all summer. There are widespread concerns that that kind of financial shock might tip the global economy back into recession.
In the sole piece of Canadian economic data Friday, Statistics Canada reports that non-resident investors resumed significant acquisitions of Canadian securities in July, adding $11.8 billion to their holdings, mainly in federal treasury bills.
Statistics Canada said Canadian holdings of foreign securities edged up $1.3 billion, led by further acquisitions of foreign corporate shares.
By contrast, U.S. data showed foreign holdings of U.S. Treasury securities dipped 0.4 per cent to $4.48 trillion in July. That matched the 0.4 per cent decline in April, which was the first decline in two years.