TMCnet News
TSX up on rising commodities(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Inflation news affects loonie The Toronto stock market was in positive territory Friday morning as investors took in rising commodity prices and mixed Canadian economic data. The S&P/TSX Composite Index advanced 80.39 points by noon at 13,514.69 The Canadian dollar eased 0.73 cents to 105.29 cents U.S. In Canadian corporate news, Precision Drilling Corp. recovered with a second-quarter profit of $16.4 million, above a loss of $69.4 million a year ago. Revenues grew 31.9% to $345.3 million from $261.8 million. Shares gained 6% or 97 cents to $16.36. Celestica Inc. says profits rose to $45.7 million, or 21 cents per share in the second quarter, compared to a profit of $13 million, or six cents a share, in the same period last year. Revenues rose to $1.83 billion from a year-earlier $1.59 billion. Its shares rose 10.3% or 83 cents to $8.87. TMX Group Inc. shares gained 1.3% or 57 cents to $44.47 after it announced late Thursday plans to hold formal discussions with Maple Group Acquisition Corp. The Maple Group has made a $3.7-billion takeover bid for the operator of the Toronto Stock Exchange. Its directors aren't making any recommendation to shareholders regarding Maple's offer, adding there is no guarantee that any agreement between the two sides will come out of the talks. On the economic side, inflation rose 3.1% in the 12 months to June, primarily the result of higher prices for gasoline and food purchased from stores. Statistics Canada also said this morning that retail sales edged up 0.1% in May, with gains in most sectors held in check by declines at motor vehicle and parts dealers and at food and beverage stores. ON BAYSTREET The TSX Venture Exchange gained 14.71 points to 2,053.76, while the Nasdaq Canada index was down 1.03 points to 564.23 In Toronto, nine of the 14 subgroups went higher at midday. Gold leaped 1.8%, materials advanced 1.6%, and consumer staples moved 0.6% higher. The five laggards were weighed mostly by metals and mining stocks, as well as consumer discretionary stocks, each down 0.3%, while industrials slid 0.1%. ON WALLSTREET In New York, stocks were mixed in early trading Friday, with the Dow industrials dragged lower by shares of Caterpillar, after the industrial conglomerate reported disappointing earnings. Investors were also on edge over the latest moves (or lack thereof) on the U.S. debt ceiling, as well as Greece's debt woes. The Dow Jones Industrials stumbled 41.97 points by lunch time to 12,682.40 The S&P 500 let go of 0.29 points to 1,343.51, and the Nasdaq Composite Index moved higher by 11.04 points to 2,845.57 Shares of Caterpillar sank more than 6%, making the construction equipment maker the weakest member of Dow and the third-worst performer on the S&P 500. Caterpillar's earnings fell short of forecasts. Caterpillar's disappointing report dragged other equipment manufacturers lower as well, including shares of Deere, Cummins and Joy Global Friday's early weakness comes a day after U.S. stocks surged, following news that European leaders reached an agreement to contain Greece's debt crisis. The aid package, which officials said will cover all of Greece's financing needs, involves lowering interest rates and extending the payback period on existing loans to Greece from the EU and International Monetary Fund. General Electric reported operating earnings of $3.7 billion U.S. or 34 cents per share -- a jump of 17% from the year-ago quarter. Shares rose 1%. CoinStar shares dropped 6%, after the head of the company's RedBox unit unexpectedly resigned on Friday. Coinstar makes the bulk of its profits from RedBox. Shares of Verizon fell 2.7%, after the company announced it didn't sell as many iPhones as anticipated, despite reporting stronger-than-expected earnings. The company reported quarterly earnings per share of 57 cents U.S., topping analyst estimates by two cents. Former Dow member Honeywell beat analyst estimates with second-quarter earnings of $1.02 U.S. per share. The company reported revenue of $9.1 billion U.S., excluding $234 million U.S. from a newly discontinued operation. Shares fell about 3% in early trading. Sandisk shares jumped 9%, following the company reporting better-than-expected earnings and revenue, while also raising its full-year guidance. Shares of AMD jumped 14% on Friday, after the company said it expected revenues to rise faster than previously forecasted. The company also posted a profit of nine cents a share, beating analysts' expectations by a penny. McDonald's reported earnings of $1.35 U.S. per share, compared to $1.13 U.S. in year-ago quarter. Shares rose 3% in early trading. The price on the benchmark 10-year U.S. Treasury gained ground, dropping the yield to 2.99% from 3.01% late Thursday. Treasury prices and yields move in opposite directions Oil for August delivery faded 37 cents to $99.50 U.S. a barrel. Gold futures for August delivery rose $14.90 to $1,601.90 U.S. an ounce. © 1998 - 2011 Baystreet.ca Media Corp. All rights reserved. |