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Stocks sag at Tuesday open
[September 16, 2014]

Stocks sag at Tuesday open


(Baystreet Stock Market Update (Canada) Via Acquire Media NewsEdge) Gold loses luster The S&P/TSX composite index gave back 29.29 points to open at 15,453.27 The Canadian dollar gained 0.27 cents to 90.75 cents U.S.

Allergan Inc. and its suitors, Pershing Square Capital Management and Valeant Pharmaceuticals Inc, settled their pending litigation before the Delaware Court of Chancery and agreed to hold a special shareholder meeting on the originally scheduled date, Dec. 18. Valeant stock faltered 45 cents to $133.74.



Global mobile operator Vimpelcom and Egypt's Global Telecom have agreed to sell their stake in Wind Canada for $135 million to a Canadian investment firm, Globalive Capital, the two companies said.

Barrick Gold Corp has appointed well-known Canadian lawyer and long-time Barrick advisor Kevin Thomson to help with its strategy, the latest appointment by Executive Chairman John Thornton in a wide-ranging executive overhaul. Barrick stock dropped 22 cents a share to $17.97.


Raymond James cut the target price on B2Gold Corp to $3.75 from $4.00. B2Gold stock fell two cents to $2.25.

National Bank Financial resumed coverage on Manulife Financial with an outperform rating. Manulife shares picked up eight cents to $22.12.

In the economic docket, Statistics Canada reported this morning that Canadian manufacturing sales increased 2.5% to $53.7 billion in July, largely as a result of higher sales in the transportation equipment and primary metal industries.

ON BAYSTREET The TSX Venture Exchange dropped 3.75 points to 981.66.

Of the 14 Toronto subgroups, consumer staples, utilities and health-care each gained 0.1%, and energy stocks were flat in the first hour; so much for the good news.

Everything else trundled lower, weighed mostly by gold, sliding 1.3%, metals and mining, dipping 1%, and materials, weakening 0.9%.

ON WALLSTREET Tech stocks tried to rally Tuesday, with the sector attempting to come back from the prior-day's losses The Dow Jones Industrials flattened out 1.01 points to 17,030.13.

The S&P 500 regained 3.37 points to 1,987.50. The NASDAQ improved 5.73 points to 4,524.63 Gains came from Microsoft Corp., Google Inc., eBay Inc. and Micron Technology Inc., Apple Inc. however, fell almost 2% to $99.85 U.S. following reports that the new iPhone 6 may not make it onto Chinese retail shelves before the end of the year.

However, Majesco Entertainment Co. fell 14% after a similar drop late Monday when the video-game maker posted a larger-than-expected third-quarter loss.

Tesla Motors Inc. rose modestly after falling hard Monday on aMorgan Stanley note that said the electric-car maker's stock is overvalued. But one analyst advised in a note Tuesday that investors buy Tesla on weakness, as he reiterated an overweight rating and a 12-to-18-month price target of $385 U.S.

The U.S. Federal Open Market Committee's two-day policy meeting begins Tuesday morning and many worry the policy makers will take a hawkish stand on interest rates.

In economic news, producer prices were flat in August thanks to falling gasoline and food costs, another sign that inflationary pressure is receding. It was the lowest reading in the producer price index since December, the U.S. Labor Department reported.

Prices for 10-year U.S. Treasuries gained, lowering yields to 2.58% from Monday's 2.59%. Treasury prices and yields move in opposite directions.

Oil prices gained 50 cents to $93.42 U.S. a barrel.

Gold prices handed back a dollar to $1,234.10 U.S. an ounce.

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