Wednesday, November 5, 2008

Bleeding on Bay Street

Roger Biduk writes:

The stock market optimism that was generated ahead of the U.S. elections was mostly obliterated on North American markets Wednesday, with commodities tumbling as part of a broader decline.
Toronto's S&P/TSX composite index came out the least scathed, losing about half of the gains it took a day earlier. It closed down 229.38 points to 9,887.20.
The TSX Venture Exchange moved down 23.85 points to 951.42.

The TSX base metals sector led declines, down 7.9 per cent, as all major sectors were down.
Gold stocks were down 1.44 per cent overall as the sector endured an up-and-down session where it was at one time the lead gainer, and later the lead loser.
The December bullion contract on the New York Mercantile Exchange closed $14.90 lower to US$742.40 an ounce, after gaining more than five per cent in the last two sessions.

The Canadian dollar closed at 85.62 cents US, down 1.25 cents, even as the greenback weakened.

On the TSX, the energy sector dropped 3.46 per cent as the December crude oil receded $5.23 to US$65.30 on the New York Mercantile Exchange.

In Canadian corporate news, units of The Brick Group Income Fund (TSX:BRK.UN) fell nearly 36 per cent - down $1.79 to $3.25 - after the furniture, appliance and electronics retailer said it will cut distributions in half and reported third quarter net profits dropped to $12.4 million from $17.2 million last year.
Newalta Income Fund (TSX:NAL.UN) announced it will convert from an income trust into a dividend-paying corporation. Newalta is also cutting its growth capital spending next year by about 30 per cent to $75 million, as it presented third-quarter results showing a 19 per cent increase in revenue to $158.6 million and a five per cent rise in net income to $18.7 million. Its units rose two per cent, or 17 cents, to $9.20.
Enbridge Inc. (TSX:ENB) said third-quarter profit increased 90 per cent over a year ago as revenue swelled 66 per cent to $4.37 billion from $2.63 billion. The pipeline operator earned $148.4 million or 41 cents per share in the three months ended Sept. 30, up from $78.1 million a year earlier. Enbridge shares moved down 30 cents to $42.
Pengrowth Energy Trust (TSX:PGF.UN) reported third-quarter earnings of $422.4 million, powered by pretax mark-to-market gains of $476 million on commodity hedging, while oil production declined five per cent. Its units were down 44 cents to $12.87.
Agrium Inc. (TSX:AGU) gained 18 cents to $46.18 after third-quarter earnings of US$367 million, more than seven times the $51 million the farm-inputs company earned in the year-ago period.
Domtar Corp. (TSX:UFS) booked third-quarter net earnings of $43 million, up from of $36 million a year ago, but it offered a glum fourth-quarter outlook and its stock rose 10 cents to $2.80.
Cameco Corp. (TSX:CCO) gained 10 cents to $20.17 after the company disclosed a "modest increase" in water inflow into a development area of its McArthur River uranium mine in northern Saskatchewan. Cameco said the inflow is only 10 per cent of its pumping capacity and is "well managed."

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Bay Street Rallies

Roger Biduk writes:

North American stock markets surged ahead on Tuesday and closed near their highs of the day as stronger commodities prices and the U.S. election offered up plenty of motivation for investors.

Toronto's S&P/TSX composite index moved ahead four per cent, or 395.32 points, to close at 10,116.58.
The TSX Venture Exchange moved up 39.68 points to 975.27.

Gold stocks led the climb, rising 11.5 per cent, as the December bullion contract gained $30.50 to US$757.30 an ounce on the New York Mercantile Exchange.

The TSX energy sector jumped 5.9 per cent. The light sweet crude contract for December ended the day ahead 10.4 per cent to close at its highest level in two weeks, up $6.62 at $70.53.

The CDN$ continued its revival, gaining 2.19 cents Tuesday. It closed at 86.87 cents US, as the greenback fell against most other major currencies. The loonie had dived to barely 77 cents a week ago but has recovered much of the ground it lost in October.

There was more bad news in the auto sector Tuesday, with Canadian-based global parts maker Magna International Inc. (TSX:MG.A) reporting a third-quarter net loss of US$215 million as sales fell nine per cent from a year earlier. Magna halved its dividend and cut its full-year sales outlook. Its stock lost $1.48 to $39.52.
And German luxury carmaker BMW said its third-quarter earnings dropped 63 per cent to 298 million euros (US$375.5 million) amid "ongoing consumer reticence."
TMX Group Inc. (TSX:X) is cutting 10 per cent of its workforce - 85 people - as the stock exchange operator's integration of the Montreal derivatives market continues. TMX shares gained 80 cents to $29.30.
Enbridge Income Fund (TSX:ENF.UN) said its profit jumped 29 per cent in the third quarter and the company hiked its dividend, which helped send its units up 45 cents to $9.95.
Boralex Power Income Fund (TSX:BPT.UN) says its profit nearly doubled in the third quarter as revenue rose nearly 19 per cent. Units in the Montreal-based electricity producer moved down two cents to $3.66.

Roger Biduk writes:
Talisman Energy Inc. (TSX:TLM) said its third-quarter earnings set a company record, soaring 305 per cent to $1.4 billion. Its shares were up 98 cents to $12.64.
Saputo Inc. (TSX:SAP) has reported summer-quarter earnings of $69 million, up 10 per cent from $62.5 million in the year-ago period, as revenue grew 13 per cent to $1.45 billion largely because of a U.S. acquisition. Shares slid $1 to $24.
Open Text Corp. (TSX:OTC) gained $2.04 to $34.04 after saying it will cut its global workforce by 10 per cent - about 360 jobs - despite nearly doubling its profit in the latest quarter on higher sales.
Catalyst Paper (TSX:CTL) shares rose nearly 23 per cent after the company said cost saving measures helped it trim losses in the third quarter to $10.9 million from $18.6 million a year earlier. Shares were up 8.5 cents to 46 cents.
Magna Entertainment Corp.(TSX: MEC.A) shares jumped more than 10 per cent, up 46 cents to $4.86, causing North America's largest owner and operator of horse racetracks to issue a release saying it isn't aware of any development that would cause the stock's rise.

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