Roger Biduk writes:
The Toronto Stock Exchange ended the day in positive territory Friday after a volatile week of trading on uncertain oil prices and jitters about the future of the U.S. financial industry.
Toronto's S&P/TSX composite index rose 156.82 points to 12,769.58.
The Canadian dollar closed at 94.24 cents US Friday, up 1.35 cents, after hitting a 13-month low on Thursday.
On the New York Mercantile Exchange, light, sweet crude for October delivery rose 31 cents to settle at $101.18 a barrel, after briefly sinking to $99.99 as refineries in the Gulf of Mexico battened down the hatches over concern about the impact of hurricane Ike.
Crude oil on the futures market briefly sank below the psychologically important US$100-a-barrel mark for the first time since April 2 - showing that investors believe a worsening global economy will continue to drive down demand for some time in the United States and elsewhere.
In the past weeks, falling crude prices have driven down Canada's main stock index, which is heavily weighted to oil, gas and commodity companies, as higher prices contribute to demand destruction.
Shares in EnCana Corp. (TSX:ECA) rose 87 cents to $71.69 as the energy sector ended the day up two per cent Friday.
The TSX Venture Exchange was up 43.71 points at 1,607.53.
On the TSX, the financial and information technology sectors created the biggest drag, each falling more than one per cent.
TD Bank (TSX:TD) stock was off by 56 cents to $62.29 while Research in Motion (TSX:RIM) was down 4.7 per cent at $112.36.
The gold sector rose more than nine per cent as the December bullion contract on the Nymex rose $19 to US$764.50 an ounce and Goldcorp (TSX:G) rose 14.5 per cent to $31.36.
In other news, Prime Minister Stephen Harper said a re-elected Conservative government would make it easier for foreign companies to buy parts of Canadian firms.
The Tories would also increase the allowed level of foreign investment in airlines to 49 per cent from the current 25, and allow foreign companies to own Canadian uranium mines.
Shares in Cameco (TSX:CCO) were up 38 cents to $27.25.
Boralex Power Income Fund (TSX:BPT.UN), a Montreal-based electricity generator, said its decision to temporarily halt its wood-residue thermal power stations at Senneterre and Dolbeau in Quebec won't affect its current rate of distributions at 70 cents per year. Its stock closed at $4.18, up three per cent.
www.rogerbiduk.ca
rogerbiduk@rogerbiduk.ca
www.rogerbiduk.wordpress.com
Friday, September 12, 2008
Roger Biduk - "Before the Bell" - Futures Pointing to a Lower Open on Wall Street
Roger Biduk writes:
FUTURES POINTING TO A LOWER OPEN ON WALL STREET
U.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.
December-dated S&P 500 futures fell 7.6 points to 1,244.40 and Nasdaq 100 futures dropped 6.5 points to 1,775.25. Dow industrial futures fell 63 points.
U.S. stocks saw a manic Thursday, with steep early losses ending in a sizeable advance as speculation that Lehman Brothers wouldn't survive was countered by talk that the investment bank is in talks for a federal government-chaperoned buyout. The Dow Jones Industrial Average rose 164 points, the S&P 500 added 17 points and the Nasdaq Composite rose 29 points.
U.S. retail sales unexpected fell in August, pushed lower by plunging gasoline prices, according to Commerce Department data released Friday. Seasonally adjusted retail sales fell 0.3% in August, much worse than the 0.4% gain expected by economists. Sales in June and July were also revised lower by a total of 0.6 percentage points.
Also, U.S. producer prices fell a steeper than expected 0.9% in August, the Labor Department reported Friday, helped by lower energy costs. The decline follows on the heels of a sharp 1.2% gain in July. Excluding food and energy, "core" producer prices rose 0.2% last month.
University of Michigan consumer sentiment data for September is due out shortly after the open of trade.
The US$ still rose against the British pound and the euro with currency market attention more on Lehman Brothers. Oil futures added 64 cents to $101.51 a barrel.
Attention on Friday turns to which firm is likely to end up with Lehman (LEH)
assets. Bank of America (BAC) was Lehman's "best hope," according to an article in The Wall Street Journal. Britain's Barclays (BCS), which like Lehman is active in debt-market financing, has also been named as a possible suitor.
In pre-open deals, Lehman shares dropped 12.8%.
Merrill Lynch (MER) fell 16% on Thursday on fears that it will be the next domino to fall. Merrill shares lost a further 6% in pre-market trade.
Meanwhile, Washington Mutual (WM) late on Thursday gave a financial update, saying it's well capitalized and that provision for loan losses will drop to roughly $4.5 billion from $5.9 in the second quarter. Retail deposits were "essentially unchanged" at the end of August from year-earlier levels.
Goldman Sachs upgraded Washington Mutual to neutral from sell, saying the lender's capital is absorbing pain, but Moody's Investors Service cut its credit rating to below investment grade.
Chipotle Mexican Grill (CMG) shares lost 12% on a warning over third-quarter earnings, which it now expects to fall.
Overseas markets were generally stronger, with the FTSE 100 up 0.9% in London and the Nikkei 225 up 0.9% in Tokyo.
www.rogerbiduk.ca
www.rogerbiduk@rogerbiduk.ca
Visit my Investment Blog on the Canadian Markets at www.rogerbiduk.wordpress.com
FUTURES POINTING TO A LOWER OPEN ON WALL STREET
U.S. stock futures pointed to a weaker start Friday after an unexpected drop in retail sales, with markets on edge over the fate of Lehman Brothers Holdings, the brokerage believed to be in its last hours of independence.
December-dated S&P 500 futures fell 7.6 points to 1,244.40 and Nasdaq 100 futures dropped 6.5 points to 1,775.25. Dow industrial futures fell 63 points.
U.S. stocks saw a manic Thursday, with steep early losses ending in a sizeable advance as speculation that Lehman Brothers wouldn't survive was countered by talk that the investment bank is in talks for a federal government-chaperoned buyout. The Dow Jones Industrial Average rose 164 points, the S&P 500 added 17 points and the Nasdaq Composite rose 29 points.
U.S. retail sales unexpected fell in August, pushed lower by plunging gasoline prices, according to Commerce Department data released Friday. Seasonally adjusted retail sales fell 0.3% in August, much worse than the 0.4% gain expected by economists. Sales in June and July were also revised lower by a total of 0.6 percentage points.
Also, U.S. producer prices fell a steeper than expected 0.9% in August, the Labor Department reported Friday, helped by lower energy costs. The decline follows on the heels of a sharp 1.2% gain in July. Excluding food and energy, "core" producer prices rose 0.2% last month.
University of Michigan consumer sentiment data for September is due out shortly after the open of trade.
The US$ still rose against the British pound and the euro with currency market attention more on Lehman Brothers. Oil futures added 64 cents to $101.51 a barrel.
Attention on Friday turns to which firm is likely to end up with Lehman (LEH)
assets. Bank of America (BAC) was Lehman's "best hope," according to an article in The Wall Street Journal. Britain's Barclays (BCS), which like Lehman is active in debt-market financing, has also been named as a possible suitor.
In pre-open deals, Lehman shares dropped 12.8%.
Merrill Lynch (MER) fell 16% on Thursday on fears that it will be the next domino to fall. Merrill shares lost a further 6% in pre-market trade.
Meanwhile, Washington Mutual (WM) late on Thursday gave a financial update, saying it's well capitalized and that provision for loan losses will drop to roughly $4.5 billion from $5.9 in the second quarter. Retail deposits were "essentially unchanged" at the end of August from year-earlier levels.
Goldman Sachs upgraded Washington Mutual to neutral from sell, saying the lender's capital is absorbing pain, but Moody's Investors Service cut its credit rating to below investment grade.
Chipotle Mexican Grill (CMG) shares lost 12% on a warning over third-quarter earnings, which it now expects to fall.
Overseas markets were generally stronger, with the FTSE 100 up 0.9% in London and the Nikkei 225 up 0.9% in Tokyo.
www.rogerbiduk.ca
www.rogerbiduk@rogerbiduk.ca
Visit my Investment Blog on the Canadian Markets at www.rogerbiduk.wordpress.com
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