Gains for TSX
(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Energy stocks big winner
The Toronto stock market advanced Thursday even as disappointing news on American consumer spending raised concerns about economic growth.
The S&P/TSX composite index gained 56.09 points to close Thursday at 15,030.74
The Canadian dollar strengthened 0.25 cents at 93.54 cents U.S.
On the corporate front, grocer Sobeys plans to close about 50 of its underperforming stores, most of them in Western Canada where parent company Empire Inc. purchased the Canada Safeway supermarket chain.
Empire made the announcement as it also posted fourth-quarter adjusted net earnings from continuing operations of $131.3 million, or $1.42 per diluted share, beating estimates of $1.29. That compared with $95.7 million, or $1.40 per diluted share, in the same quarter of last year.
Sales were $5.94 billion, up $1.68 billion year over year, narrowly missing expectations of $5.95 billion. It also upped its dividend 3.8% to 27 cents a share and its shares scaled higher 59 cents to $67.69.
Also, media giant Shaw Communications reported quarterly earnings per share of 47 cents, two cents less than estimates. Revenue in the quarter was $1.34 billion, up 1% year over year and its shares were unchanged at $26.35.
The energy sector was up as oil prices declined while fears diminished somewhat over supply disruptions from Iraq. Imperial Oil took on 63 cents to $56.17 while Canadian Natural Resources gained 24 cents to $48.49
The gold sector advanced while Barrick Gold gained 16 cents to $19.23 while Iamgold nicked up three cents to $4.30
September copper was up a cent at $3.17 U.S. a pound and the base metals component edged up. Teck Resources took on seven cents to $23.70.
The TSX Venture Exchange dropped 1.90 points to 1,013.14
All but three of the 14 Toronto subgroups were higher on the day, led by energy, soaring 0.7%, while industrials and information technology issues gained 0.5% each.
The three laggards were health-care, slipping 0.4%, telecoms, down 0.2%, and real-estate stocks, off 0.1%
All three U.S. stock indices finished the day only slightly downward, despite much bigger losses during the day on rate hike fears.
The Dow Jones Industrials still finished 21.38 points shy of breakeven to 16,846.13.
The S&P 500 slid 2.31 points to 1,957.23, and the NASDAQ composite remained lower 0.71 points to 4,379.05
While stocks are solidly lower, the S&P 500 is still on track for its 49th consecutive day without a close of 1% higher or lower. That's the longest such streak since 1995.
Stocks slumped on concerns that the Fed will soon remove the easy-money punch bowl that's been juicing stock prices, according to key market players.
Shares of Barclays crumbled 6.5% after the New York Attorney General unleashed a lawsuit late Wednesday against the British bank alleging a lack of transparency in some of its alternative trading platforms.
The attorney general claims the bank misled investors -- even going as far as lying in marketing materials -- about how much high-frequency trading firms were operating in Barclays' "dark pool" trading platform.
Camera maker GoPro was more than 30% above its initial public offering price of $24 U.S. in late afternoon trading. The consumer electronics company, which is trading on the Nasdaq under the ticker symbol "GPRO," raised about $425 million U.S. in the offering. At its current price, the company is worth nearly $4 billion U.S.
It's been an ugly day for Bed Bath & Beyond. The home goods retailer tumbled 8% on after earnings came in lower than expected, and the retailer doesn't forecast it will get much better the rest of the year.
Philip Morris International was also stuck in reverse, losing almost 3%, after the cigarette maker dimmed its forecast for the year due to currency troubles and economic challenges in Europe.
On the other hand, Alcoa bounced nearly 3% after unveiling a $2.85-billion U.s. cash-and-stock deal to acquire Firth Rixson, which makes jet-engine parts. The move should help Alcoa diversify amid anemic aluminum prices.
Nabors Industries soared 7% after inking a $2.86-billion U.S. deal to combine one of its units with C&J Energy Services. Both companies are key players in getting oil and natural gas wells ready to go.
Nike was scheduled to hit the earnings stage after the closing bell.
Investors kept an eye on consumer discretionary stocks after the government said consumer spending inched up just 0.2% in May, trailing forecasts for a 0.4% rise. Spending for April was upgraded from a contraction to a 0.1% increase. Personal income rose 0.4%, as expected.
Also, new data showed unemployment claims dipped to 312,000 last week from an upwardly revised 314,000 the week before.
Prices for 10-year U.S. Treasuries were higher, lowering yields to 2.52% from Wednesday's 2.56%. Treasury prices and yields move in opposite directions.
Oil prices slipped 93 cents to $105.57 U.S. a barrel.
Gold prices retreated $5.60 at $1,317.00 U.S. an ounce.
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