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Toronto ends week in green(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Royal Bank loses on day Canadian stocks edged higher, with strength in U.S. stocks providing a lift even as shares of the Royal Bank of Canada fell after the company said its third-quarter results were hurt by a big charge related to the sale of its U.S. retail banking operations. The S&P/TSX Composite Index forged higher 43.20 points by the close to 12,327.51. The index had shed more than 200 points soon after the opening bell. The benchmark index has traded around 2.5% higher week-to-date, but it's down about 8.5% for the year so far. The Canadian dollar grew 0.49 cents to 101.70 cents U.S. Financials took the biggest hit among Canada's sector indexes, as shares of the Royal Bank of Canada lost 3.6% or $1.85 to $40.81 The company said Friday that net income from continuing operations climbed 13% in the third quarter from a year earlier to $1.56 billion, or $1.04 per share. But including a loss of $1.57 billion related to the sale of its U.S. retail bank, it reported a net loss of $92 million for the quarter. Among gold issues, shares of Kinross Gold Corp. added 2.7%, or 46 cents, to $171.31, while Iamgold Corp. moved up 1.7%, or 34 cents to $20.24 The Ontario Securities Commission, which is investigating Sino-Forest's operations, suspended trading Friday on Sino-Forest Corp. for 15 days. The securities regulator said the forestry company allegedly misled the public by misrepresenting some of its timber holdings. The stock listed at $4.81 per share at the time of the suspension. ON BAYSTREET The TSX Venture Exchange gathered 12.83 points to 1,752.31, while the Nasdaq Canada index regained 11.83 points to 506.69 In Toronto, all but two of the 14 subgroups had headed to higher ground on the day, on the strength of materials, picking up 2.4%, global base metals, ahead 2.2%, and gold up 1.9%. The two laggards were financials, down 1.4%, and telecoms, off 0.8%. ON WALLSTREET In New York, stocks turned solidly higher Friday even though Fed Chief Ben Bernanke warned in his much-anticipated Jackson Hole, Wyo., speech that the economy continues to remain weak in the short term. Plus, Bernanke did not lay out or allude to any new plans to introduce more stimulus measures. Immediately following the speech, stocks sold off broadly and sharply, only to recoup all those losses fairly quickly. The Dow Jones Industrials vaulted 134.72 points, or 1.2%, to close the day and week at 11,284.50, after falling more than 200 points following Bernanke's speech. The S&P 500 gained 17.53 points to 1,176.80, while the Nasdaq ticked higher 60.22 points to 2,479.85. Tech stocks led the way, as Dow members Cisco Systems and Intel were up more than 2% while the S&P 500 was led higher by shares of Qualcomm, Dell and Nvidia Tiffany's stock jumped 7%, after the luxury jeweler posted higher-than-expected earnings and sales for the second quarter. Insurance stocks were sliding as the East Coast braced for Hurricane Irene. Shares of Allstate Corp., Travelers Cos., MetLife and Chubb Corp. were all down about 2%. Shares of Pandora climbed 9%, as second-quarter revenue spiked 117% to $67 million U.S. -- beating analysts' forecast for $61 million U.S. But the online radio company's stock is off almost 17% from where it debuted in June. Halliburton is on a hiring spree this year. The company is planning to create as many 15,000 jobs globally, including 11,000 in North America, according to a statement released late Thursday. Shares were down 1%, however Speaking in Jackson Hole, Wyo., Bernanke noted that additional economic stimulus would have to come from agencies outside of the Fed's control like Congress. The only notable action that Bernanke took was announcing the Fed would expand its September meeting from one day to two days. Meanwhile, as Hurricane Irene makes its way up the East Coast toward New York City, exchanges are prepared to resume trading as usual Monday. "We have contingency plans in place for such events, with the goal of having the market up and running while ensuring the safety of our people," said a spokesman from NYSE Euronext, the parent of the New York Stock Exchange. The NYSE was closed for a day in September 1985, when the eye Hurricane Gloria hit western Long Island, New York. Economically speaking, the Commerce Department said the U.S. economy grew at a revised annual rate of 1% during the second quarter, down from a previously-reported 1.3%. The University of Michigan's consumer sentiment survey came in slightly better than expected at a reading of 55.7, up from the multi-year low of 54.9 reported two weeks ago. The price on the benchmark 10-year U.S. Treasury note gained ground, lowering the yield to 2.19% from Thursday's 2.22%. Prices and yields move in opposite directions. Oil for October delivery added 24 cents to $85.54 U.S. a barrel. Gold futures for December delivery rose $23.80 to $1,788.00 U.S. an ounce. © 1998 - 2011 Baystreet.ca Media Corp. All rights reserved. |