TSX flat despite stronger commodities

The Toronto stock market was relatively flat Tuesday morning with commodity prices fluctuating amid uncertainty surrounding a two-day policy meeting for the U.S. Federal Reserve.The S&P/TSX composite index fell 15.70 of a point to 11,742.18 and the TSX Venture Exchange added 0.03 points to 1,184.39.The Canadian dollar fell 0.07 of a cent to 99.75 cents US.In commodities, the September crude contract on the New York Mercantile Exchange was down $1.09 to US$88.69 a barrel at mid-morning. Earlier in the session, crude had been above Monday’s close.September copper moved up three cents to US$3.45 a pound while August gold was ahead $2.10 at US$1,621.80 an ounce.Attention will be focused on the Fed meeting, which is expected to include action to kick-start the U.S. economy. The anticipation comes ahead of a Thursday meeting at the European Central Bank..On Wall Street, the Dow Jones industrial average declined 15.70 points to 13,047.16 and the broader S&P fell back 2.45 of a point to 1,382.85. Nasdaq was off 0.16 of a point at 2,945.68.In U.S. economic data, U.S. home prices rose in May from April in every city tracked by a leading index, a sign that increasing sales and tight inventories are supporting a modest housing recovery.The Standard & Poor’s/Case-Shiller home price index showed a measure of national prices rose 2.2 per cent from April to May, the second increase after seven months of flat or declining readings.In corporate developments, Rona Inc. (TSX:RON) shares are up 18.5 per cent after the company rebuffed an unsolicited takeover from Lowe’s Companies worth $1.76 billion. The Montreal-area company said the offer from its American rival (NYSE:LOW) wouldn’t be in its shareholders’ best interest, but Lowe’s said . Rona shares rose $2.20 to $14.07.In earnings, Thomson Reuters (TSX:TRI) says its adjusted earnings rose to 54 cents per share, compared to 51 cents per share in the second quarter of 2011. Its diluted earnings per share, under IFRS, was $1.11 per share up from 67 cents per share in the second quarter of 2011. Overall revenue fell by four per cent to US$3.3 billion from $3.4 billion. Shares backed off 87 cents to $28.07.Inmet Mining (TSX:IMN) said higher copper sales volumes helped push its second quarter earnings up 74 per cent from profits reported a year earlier. The company reported net income of US$94.2 million or $1.36 per share for the quarter ended June 30, compared to $54.3 million or 83 cents per share for the same period a year earlier. Inmet shares gained 5.8 per cent, or $2.22 to $40.30.A federal arbitrator has sided with Air Canada (TSX:AC.B) in its labour dispute with the union representing its pilots. The five-year collective agreement will be effective until April 2016. Shares were up six per cent, or seven cents, to $1.15.In Europe, Germany’s DAX was up 0.1 per cent while France’s CAC 40 fell 0.84 per cent. The FTSE 100 index of leading British companies dipped 0.4 per cent.Earlier in Asia, Japan’s Nikkei 225 stock average rose 0.7 per cent to close at 8,695.06 and Hong Kong’s Hang Seng gained 1.1 per cent to 19,796.81. South Korea’s Kospi rose 2.1 per cent to 1,881.99 while Australia’s S&P/ASX 200 climbed 0.6 per cent to 4,269.20.China’s Shanghai Composite dipped 0.3 per cent to finish at 2,103.63 as investors appeared unimpressed by a government announcement the day before that it will launch projects to attract private investments in energy, health and other industry sectors in an attempt to reverse an economic slump. read more