Roger Biduk:
North American stock markets fell sharply again Wednesday as investor confidence was eroded by bad economic data and pessimism over the prospects of a U.S. bailout for the Big Three automakers.
Wall Street stocks were slammed the hardest, hitting levels not seen since 2003.
In Toronto, all of the sectors were lower, led by diversified metals and financials stocks.
The main S&P/TSX composite index fell by 345.17 points to 8,490.56, a drop of nearly four per cent.
The Canadian dollar was at 79.83 cents US, down 1.48 cents, and the TSX Venture Exchange lost 20.16 points to 730.09.
TSX financials stocks took a beating, down 4.9 per cent, after the Bank of Nova Scotia (TSX:BNS) warned Tuesday of a bigger-than-expected $595-million hit to its quarterly earnings caused by financial-market upheaval.
The other banks are expected to suffer similarly to Scotiabank when they issue their fourth-quarter results, starting next week. Scotia's shares were down $1.93 to $35.24.
Bank of Canada governor Mark Carney strongly indicated Wednesday that the central bank will cut interest rates further next month in an effort to stimulate the economy. Carney told a luncheon in London that the economy is slowing more than previously thought, and inflation is less of a concern.
The TSX diversified metals sector slid 11.5 per cent, and Teck Cominco Ltd. (TSX:TCK.B) slid 15 per cent to $5.22.
Energy stocks were down 3.8 per cent as crude oil lost 77 cents to close at US$53.62 a barrel on the New York Mercantile Exchange.
The gold sector trekked 2.8 per cent lower as gold futures ended ahead for the first session this week on U.S. dollar weakness.
The December bullion contract closed up $3.30 to US$736 an ounce.
In economic news, Statistics Canada's composite leading index - an indicator of future activity - fell 0.4 per cent in October. It was the biggest decline since the early-1990s recession, after a 0.3 per cent drop in September.
In earnings news, supermarket operator Metro Inc. (TSX:MRU.A) rang up $72.3 million in summer-quarter profit, up 25.5 per cent from year-ago earnings that were reduced by the integration of A&P stores. Sales were up 1.8 per cent from a year ago. Metro shares were at $33.
The Resolve Business Outsourcing Income Fund (TSX:RBO.UN) is suspending distributions to investors. The trusts units plunged 55 per cent, or $1.94, to $1.56.
Norsemont Mining Inc. (TSX:NOM) says its board has set up a special committee to deal with "recent unsolicited expressions of interest to acquire the company" and shares were ahead 15 per cent, or 25 cents, to $1.95.
Forestry company Tembec Inc. (TSX:TMB) fell to a quarterly loss of $4 million from year-earlier profit of $22 million, as sales declined to $629 million from $675 million. Shares dropped a penny to $1.56.
www.rogerbiduk.ca
www.rogerbiduk.wordpress.com
Wednesday, November 19, 2008
Roger Biduk - Small Gains for Bay Street
Roger Biduk writes:
A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
www.rogerbiduk.ca
www.rogerbiduk@wordpress.com
A session of see-saw trading ended in positive territory for North American stock markets as investors conjured up enough optimism to drive overall sentiment higher.
But the gains weren't without a struggle - one that lasted late into the afternoon - as traders weighed dismal home building numbers, and positive outlooks from Home Depot and Hewlett-Packard.
Toronto's S&P/TSX composite index closed ahead 40.28 points at 8,835.73.
The Canadian dollar was at 81.31 cents US, down 0.44 of a cent, and the TSX Venture Exchange dropped 35.54 to 750.25.
The TSX energy sector rose 0.5 per cent as light sweet crude closed below $55 a barrel after hitting a new 22-month low earlier in the day.
Crude was down 56 cents to $54.39 a barrel on the New York Mercantile Exchange.
Information technology stocks moved up four per cent.
Enbridge Inc. (TSX: ENB.TO) said it will invest US$500 million in Enbridge Energy Partners LP, raising its stake in the U.S. pipeline business to 27 per cent. Its shares were down $1.65 cents to $37.50.
Research In Motion (TSX: RIM.TO) was ahead 12 per cent, or $6.40, to $58. An analyst at National Bank suggested that the stock is "not one to give up on" despite lagging consumer spending.
Financials were up one per cent as Royal Bank (TSX: RY.TO) jumped 18 cents to $43.54.
Roger Biduk writes:
On the downside, gold stocks fell 0.7 per cent as the December bullion delivery declined $9.30 to US$732.70.
George Weston Ltd. (TSX: WN.TO) - majority owner of Loblaw Cos. (TSX: L.TO) - reported flat third-quarter profits of $179 million, as sales increased 4.4 per cent from a year earlier to $10.61 billion. Shares in George Weston were down 48 cents to $62.40.
Shares in TransCanada Corp. (TSX: TRP.TO) dropped nearly five per cent after Monday's announcement of bought-deal issue of $1 billion in new shares to pay debt and fund capital projects including its Keystone Pipeline. Shares were down $1.68 to $32.85.
In other corporate news, Telus Corp. (TSX: T.TO), Canada's second-largest telecom operator, says it will invest $100 million over three years on a health technology division. Telus shares gained 54 cents to $38.52.
www.rogerbiduk.ca
www.rogerbiduk@wordpress.com
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